Court orders workers be paid
THE 650 staff at the Hyatt Regency Coolum Golf Resort and Spa were paid yesterday following an order by the Supreme Court.
The order was not opposed by KordaMentha, the administrator of the owning companies of the resort.
A spokesman said it was concerned only that any payment was within the law. He said usually an administrator has complete control of a company and it wanted court approval before any money was paid.
In addition to wages, the court approved payment of payroll tax and other bills.
A Hyatt spokesman said payment had already been made to staff and would be processed through the banking system in the normal way.
"In the interests of the employees and the continued operation of the Hyatt Regency Coolum Golf Resort and Spa, Hyatt of Australia Limited (Hyatt), the manager of the resort, successfully obtained orders in the Supreme Court of Queensland today authorising the payment of the current employee payroll," the Hyatt said in a statement.
"Earlier, the Voluntary Administrators of the owning companies, whose appointment was caused by interests associated with Mr Clive Palmer (pictured), had refused to provide consent for these payments."
Payments authorised by the court included fortnightly wages to staff of $612,956.59 as well as $81,102.35 in state payroll tax for February, just under $300 in payments relating to employee health funds and union fees and $793 payable to the Australian Tax Office in garnishee deductions for the period February 5-19.
The next wages payment is likely to empty the till, unless the Hyatt tips its own money in.
Apart from that, operation of the resort would be dependent on accommodation income.
A decision in the Supreme Court hearing between the adminstrator and the Hyatt which wrapped up last Friday is now not expected before tomorrow.
It is expected the decision will hang on whether or not Judge Atkinson considers the resort to have been insolvent when placed into voluntary administration on February 29.
If the Hyatt is allowed to retain management of the resort, based on recent performance it would be likely to become insolvent in the immediate future.
Since purchasing the property in July last year Mr Palmer has had to put in his own money to cover operational losses.
