NT community store back on its feet

The Registrar of Indigenous Corporations, Selwyn Button, has today announced the end of the special administration of the Urapunga Aboriginal Corporation.

The corporation operates a community store servicing the remote community of Urapunga in the Northern Territory.

In January this year, the corporation’s directors wrote to the Registrar asking for help to address financial and solvency concerns exacerbated by the sudden departure of the chief financial officer. With serious instability and food security for the community at risk, the Registrar moved to appoint special administrators on 3 February 2020.

Lack of corporate and financial records and the unfolding COVID-19 crisis made the work of the special administrators challenging. However they eventually identified entities linked to the corporation as well as assets, attended to the sale of surplus assets and lodged all outstanding business activity statements with the Australian Taxation Office for each entity.

Protracted negotiations with creditors and impacts from the COVID-19 pandemic caused the special administration to be extended on three occasions.

‘Despite a challenging start, the special administrators have been able to identify creditors, undertake negotiations and make payments to them,’ Mr Button said. ‘The corporation has engaged Outback Stores to carry out a workplace health and safety inspection and manage the community store.’

The Registrar’s office will monitor the corporation over the next 12 months.

Background

See the Registrar’s previous media release: Directors of NT community store seek Registrar's support, 3 February 2020

MR2021-09