Liberty Bell Bay smelter officially enters liquidation

Creditors have today voted to liquidate the Liberty Bell Bay smelter and appoint former administrators, EY Parthenon, as liquidators, following failed attempts to find a buyer for the northern Tasmanian business. After a potential sale collapsed last month, the smelter officially closed, leaving 200 workers without jobs. The Tasmanian government says it remains "focused on ensuring workers and their families are supported during this time". Attempts will soon begin to claw back tens of millions of dollars owed to creditors by Australia's only manganese alloy smelter after creditors voted to liquidate Liberty Bell Bay. At a meeting this afternoon, creditors appointed former administrators, EY Parthenon, as liquidators. After a potential sale collapsed last month, it officially closed, leaving 200 workers without jobs. A recent report to creditors found it may have been trading while insolvent for almost a year and is understood to owe creditors between $70 million and $300 million, including $27 million to workers. With the company now in liquidation, workers can apply to the federal government's Fair Entitlements Guarantee for many of their entitlements, including unpaid wages, redundancy pay, annual leave and long service leave. FEG payments are capped at the maximum weekly wage of $3,032. It does not cover unpaid superannuation. "We encourage all impacted workers and their families to engage with the dedicated webpage set up by the Department of Employment and Workplace Relations, which provides clear information on supports and entitlements," a Commonwealth government spokesperson said. In a statement, Minister for Business, Industry and Resources, Felix Ellis, said the decision to place Liberty Bell Bay into liquidation was "deeply disappointing for the communities of George Town, Bell Bay and Northern Tasmania". "The Tasmanian government remains focused on ensuring workers and their families are supported during this time. "Liquidation does not diminish the strategic potential of the site. There is third-party interest, and the government will engage constructively with the liquidator and prospective proponents as opportunities for its future are explored. "The Tasmanian government is backing the region, with its Northern Economic Plan to be released at the end of August."