The mid-sized trucking company, MJO Enterprises Pty Ltd, has been placed in liquidation with debts of some $2.2 million.
The liquidator, Ken Whittingham of PKF Chartered Accountants, has advised unsecured trade creditors that it is unlikely that he will be able to pay a dividend.
Secured creditors, including companies which have provided leasing facilities to MJO, will also face a shortfall.
MJO operated around a dozen trucks from premises in Chipping Norton, Sydney.
Mr Whittingham says the company had expanded rapidly, forcing it to increase its fleet.
“At the same time, however, bad debts and unprofitable runs had reduced cash flow to a point where it had been unable to meet its leasing commitments,” he says.