Newspaper article Sunshine Coast Daily (Maroochydore, Australia)

$5.5M in Debt after Rescue Goes Wrong

Newspaper article Sunshine Coast Daily (Maroochydore, Australia)

$5.5M in Debt after Rescue Goes Wrong

Article excerpt

Byline: Nikkii Joyce Nikkii.Joyce@scnews.com.au

A SUNSHINE Coast metal and aluminium magnate has gone bankrupt owing an alleged total of more than $5 million.

Walter Meyer of SP Manufacturing, Sunshine Plastics, International Mining Supplies and Walara Pty Ltd, was declared officially broke after all four businesses were put into liquidation.

It is the second time the business tycoon has become insolvent after his first business went bust in 1998.

The Daily gained access to the first official creditors report which states Mr Meyer's gambling, speculation and extravagance of living were as much to blame as adverse legal action and liabilities to guarantees.

Walter's wife Larissa spoke openly with the Daily about the impact the global financial crisis had on their booming business.

But Mrs Meyer refused to comment on the "gambling and extravagance of living" which was one of the reasons listed by the Meyers' trustee for the bankruptcy in the first creditors report dated last November.

Mrs Meyer did freely discuss the thousands of dollars lost by both themselves and family members and how the couple hopes to begin business on the Coast again in the future.

Ms Meyer said she and her husband were largely silent partners with friends in SP Manufacturing.

However, they soon found the business was going broke.

Mrs Meyer said the couple took over the reigns to try and rescue it and in January 2008 personally injected $150,000 of their own money just to keep the doors open.

She said they were well on the way when the financial crisis started to hit about two months into that process.

Three months on and the Meyers had a choice between injecting another $130,000 or closing the doors.

The Meyers chose the latter.

In January that same year, the couple was also faced with the dilemma of a major customer selling his business. …

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