No funds have been recovered as yet from the directors of Price Club, the failed supermarket chain, despite a court ruling confirming they were personally liable for some €20 million in debts in May last year, according to liquidator Andrew Borg-Cardona.
Dr Borg-Cardona, however, has promised to fight on.
“I do not know if any of the creditors have actually recovered anything,” he told The Times Business. “I believe one particular creditor had personal guarantees, but I do not know whether these have been translated into cash.” On May 14 last year, the Court of Appeal confirmed a Civil Court judgement finding Victor Zammit, Christopher Gauci and Wallace Fino guilty of wrongful trading when they continued to do business in full knowledge the Price Club chain was going under. The three were also confirmed to be personally liable for the debts.
Dr Borg-Cardona was appointed liquidator of Price Club Operators Ltd by the Civil Court in July 2002. A liquidating committee was also named.
In his first report soon after Dr Borg-Cardona said that “in broad terms the company owed about €19.8 million and had assets that did not, realistically, exceed €700,000.”
But privately, the business community now fears the 200-odd creditors, some of whom are owed up to €2.33 million, will never recover a cent.
“The creditors have always been aware of the commercial reality, irrespective of the issue of responsibility,” Dr Borg-Cardona added. “I understand that the position was made clear to them before I was appointed liquidator and I have confirmed this to them myself in a number of meetings. However, I remain committed to pursuing all avenues that are, or may become, open to me.”
The liquidator explained that as things stood, the creditors had achieved the objective they had when he was appointed: the “crystallisation” of the principle that directors are responsible when they trade wrongfully or fraudulently.
“The creditors were realistic in their expectations in respect of an actual recovery so I do not think they are surprised as to the outcome in practice – at least so far,” he pointed out. “Nonetheless, my job is to continue to follow the creditors’ claims and I intend to do just that.”