Kleenmaid transferred luxury cars before collapse

In the past two months, Deloitte has placed caveats banning the sale of two properties linked to Andrew Young. The landlord of the company headquarters in Maroochydore has also commenced legal action against Kleenmaid directors over an alleged breach of lease.

The Sunday Mail
August 23, 2009

Kleenmaid transferred luxury cars before collapse
Mitch Gaynor

THE ownership of two luxury cars worth $80,000 was transferred to the wife of Kleenmaid founder Andrew Young just five days before the company collapsed, according to new court documents.

The firm's liquidator Deloitte has begun Supreme Court action against Linda Young, demanding the return of the vehicles. The family was asked in June to hand over the cars, Deloitte says.

The Young's lawyers say they shouldn't have to do that because the cars are not the property of Kleenmaid.

In an affidavit lodged with the Supreme Court on August 10, Deloitte's Richard Hughes stated the running costs of a Lexus RX330 and an Audi A4 - both of which have personalised number plates of the Young's initials - were paid for by Kleenmaid.

Deloitte's estimated the combined value of the cars could be $80,000.

A letter from lawyers for Andrew Young (pictured) stated Mr Young paid $29,332 for his Audi.

In the affidavit, Mr Hughes wrote that the liquidator of Kleenmaid was entitled to the cars and the continued use of the vehicles by the Youngs was reducing their value.

Kleenmaid, which was founded by Mr Young and his brother Bradley, was closed by administrators on April 9. Auditors claimed the company was found to have $100 million in liabilities.

In the past two months, Deloitte has placed caveats banning the sale of two properties linked to Andrew Young.

The landlord of the company headquarters in Maroochydore has also commenced legal action against Kleenmaid directors over an alleged breach of lease.

In his affidavit, Mr Hughes also said there was evidence that in the days leading up to administrators taking over Kleenmaid, Mr Young tried to sell the cars to a separate entity called Blighs Trust.

Mr Hughes questioned the transaction, writing there was no record of the sale of the cars or proof that any money changed hands.

Blighs Trust has filed as a creditor of Kleenmaid claiming it is owed about $8.6 million.

Mr Young did not return calls from The Sunday Mail.

http://www.news.com.au/business/story/0,27753,25969249-462,00.html


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