Newspaper article Sunshine Coast Daily (Maroochydore, Australia)

Resort Staff Go without Payment Judge Still to Rule in Hyatt Case

Newspaper article Sunshine Coast Daily (Maroochydore, Australia)

Resort Staff Go without Payment Judge Still to Rule in Hyatt Case

Article excerpt

HYATT Coolum Regency Resort staff are the losers in a high stakes corporate battle between Hyatt of Australia Limited and the owner, billionaire mining magnate Clive Palmer.

The Hyatt notified the five-star resort's 650 employees yesterday that they would not be paid today because of administrative issues.

Staff members have, in the past fortnight, gone from being promised by Mr Palmer individual $500 bonuses, to not knowing where their next pay cheques are coming from.

In a statement issued at 8.11pm last night, the Hyatt claimed that the voluntary administrator, KordaMentha, had not agreed to the payment of the employee payroll.

aHyatt of Australia Limited (Hyatt), the manager of the Resort, has given the voluntary administrators until 9 am tomorrow (Wednesday, 7 March 2012) to agree to the payment, failing which Hyatt will seek orders from the Supreme Court in Brisbane tomorrow morning to make these payments in the interests of the Resort employees,'' the statement said.

A spokesman for KordaMentha had earlier stated that under the terms of a temporary injunction awarded to the Hyatt in the Supreme Court, it could not operate the bank account or direct staff.

aIN view of the court order currently in force, KordaMentha says it is appropriate that Hyatt or the court make the decision on the payment of wages,'' he said.

In another twist, there was still no decision yesterday in the Supreme Court action taken by hotel group Hyatt to protect it from being sacked as manager of the Hyatt Regency Coolum Golf Resort and Spa.

Judge Ros Atkinson concluded a two-day hearing on Friday but is still to hand down her decision.

Her deliberations have been presumably distracted by her hearing this week of the bid by Bob Katter's Australian Party to have its full title included on ballot papers for the upcoming state election.

Judge Atkinson's ruling in the Hyatt matter will be an important decision in terms of the legal standing of administrators appointed to direct the affairs of companies.

Normally a company goes into administration because it can not pay its bills. The changed status causes all standing contracts to lose their effect. …

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