Paul Scanlon review: NQR

Mustang arm fails
Nick Nichols, business editor | July 17th, 2009

MUSTANG Sales Gold Coast Pty Ltd has been placed into voluntary liquidation, throwing into doubt a looming $3 million law suit planned by one of its creditors.

The company has called in liquidators almost 18 months after its former parent, Mustang Marine, emerged from receivership under the control of the South Africa-based Standard Bank of Asia.

Mustang Sales Gold Coast Pt5y Ltd (MSGC) was the former retail distribution arm of Mustang Marine, which this week distanced itself from the company's collapse.

Mustang Marine's chief executive Chris Heaton said the liquidation of MSGC was part of the 'old regime' at Mustang Marine and did not affect the luxury boatbuilder's current operations.

Mustang Marine was placed in receivership in October 2007.

While Standard Bank took over the business assets of Mustang Marine in February last year, it withdrew all financial support for MSGC as part of the deal.

MSGC continued to operate until liquidator David Hampleton, of RE Murphy and Co, was appointed on July 3.

MSGC has just three listed creditors, Mustang Marine, which is owed $612, 105, the Australian Taxation Office, owed $11, 797, and Denraydon, which has an unspecified claim.

Denraydon is controlled by Gold Coast businessman Denis Mulheron, who ran the Mustang dealership at Runaway Bay until January last year.

MSGC was the sole supplier of new Mustang boats to Mr Mulheron's dealership, a relationship which soured in late 2007 at the time of Mustang Marine's receivership.

Mr Mulheron revealed to The Gold Coast Bulletin this week that his company Denraydon was about to lodge a recovery action in the Supreme Court of Queensland over an ongoing dispute.

He told The Bulletin that he had planned to lodge his claim of up to $3 million against the company this week after failing to secure a negotiated settlement with MSGC directors.

MSGC took over operation of the Runaway Bay dealership in January last year as a result of the dispute with Denraydon.

MSGC liquidator Mr Hampleton declined to comment on the windingup action.

It is understood he is still undertaking his investigations into the company.

Until June last year, MSGC's board of directors included Paul Scanlon, who was at the helm of Mustang Marine when it faltered in 2007.

Standard Bank of Asia's director of principle trading, Martin Lodge, also remained a director until June 30.

Mustang Marine director Russell Watkins is now listed as MSGC's sole director.