Property scion Daniel Grollo has avoided the humiliation of his collapsed Grocon construction empire being liquidated after the tax office and creditors of 88 failed companies voted to accept an arrangement that will see small creditors and employees paid out.
Creditors met on Thursday to vote on Mr Grollo’s proposal for an amended Deed of Company Arrangement (DOCA), which included a $6 million upfront payment to the Australian Tax Office (ATO) and a full payout of employee entitlements and small creditors owned less than $10,000.
Daniel Grollo blames the NSW government for Grocon’s collapse.Credit: Wayne Taylor
The tax office, owned $13.7 million in GST payments by Grocon companies, was Mr Grollo’s largest creditor and critical in supporting the vote to approve the revised arrangement.
It will now get a payout of 43.9¢ in the dollar.
The tax office said it would back the arrangement because of the significant uncertainty in recovering funds if the companies were put into liquidation.
“The Commissioners will support the proposed final amended Deed of Company Arrangement as it is considered to be in the best interest of creditors,” a tax official said.
The payout to former employees is expected to be made in a relatively…
