The liquidator of Kimberley Diamonds, which was placed into administration in 2015, has announced the full return of money owed to around 125 former employees.
Sule Arnautovic, from national insolvency firm Jirsch Sutherland, was appointed as liquidator in August 2015 when Kimberley Diamonds Pty Ltd and its Ellendale diamond mine in the Kimberley were placed into administration.
At the time of Mr Arnautovic’s appointment, there were insufficient funds available to pay money owed to employees.
The federal government was called upon to meet these employee obligations, the administrators said today.
“After lengthy investigations and litigation Arnautovic has enabled payment of a 100 cents in the dollar employee dividend to some 125 former Kimberley Diamond Co employees,” administrators Jirsch Sutherland said.
“The relevant investigations and litigation were funded by the Department of Employment under the Fair Entitlements Guarantee (FEG) scheme.”
Details of the settlement remain confidential.
The total amount paid included payment to FEG of some $5.14 million (plus recovered costs) for entitlements previously advanced to employees of KDC as well as payment in full of those obligations owed to employees which were not covered by the government scheme.
Jirsch Sutherland said ordinary unsecured creditors of Kimberley Diamonds were also expected to receive their partial dividends for the current financial year.
Mr Arnautovic said the administrators were pleased with the results.
“The recent employee dividend reduces current funding pressure on the FEG, which is also a great outcome,” he said today.
