Focus looks to $12.9m insurance claim to patch up debt

Hopes for returns for creditors and employees of Focus Press are hinging on the back of a $12.9m insurance claim, which could go part of the way to paying back an estimated total $27.3m owed to staff and suppliers.

The 208 employees – owed around $2.5m in wages and entitlements – and more than 200 unsecured trade creditors are looking to the Zurich Engineering Plant Insurance claim involving a press at the company’s Wollongong facility for a chance of restitution.

The claim is for damage and business interruption – seeking $8.2m for Focus Illawarra and $4.7m for the Sydney and Canberra business. The creditors’ report states that should the claim be paid out, there should be enough to fix up all creditors and employees in full.

Among these creditors are the Industry Department which offered a grant to build the Wollongong site, owed $5.5m; and the National Australia Bank as a secured creditor is due $4.5m. At the other end of the scale, the PIAA’s NSW golfing society is owed $88, and Maglab Magnets short $40.

Secured creditors will recoup at least some of their dollars from the sale of specified assets – including buildings, plants and equipment across the Sydney and Canberra sites, expected to fetch around $2.5m, and Wollongong – built for $12m – now valued at $2.7m.

Administrators Worrells – managing the Sydney and Canberra business – are expected to take a cut of $183,229, while Illawarra’s Holzman estimate fees of between $40,000 and $50,000.

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