NSW: Productive talks between creditors union

AAP General News (Australia)
02-13-2000
NSW: Productive talks between creditors union

SYDNEY, Feb 13 AAP - Sacked Hunter Valley textile workers should secure their lost
entitlements before the end of March after productive weekend talks between the two major
creditors, a union said today.

Textiles, Clothing and Footwear Union organiser Steve Davies said he believed a major
hurdle between the main creditors Scottish Pacific Business Finance and Oldtex had been
jumped this weekend.

"We believe a deed of agreement will be finalised this afternoon and we will probably
get a look at it tomorrow morning," Mr Davies said.

"We are hoping it will be over - depends on what is in this deed - we are hopeful as
of tomorrow we can make an announcement that the workers are going to get paid within
a month."

The 342 National Textiles workers who lost their jobs when the company folded last
month are owed $11.2 million.

The federal government has agreed to put up $4 million, contingent on the creditors
signing a deed of agreement to fund the balance.

"They (the creditors) seem to have ironed out their differences and with a bit of luck
we should get this deed up and running sometime this week," Mr Davies said.

A spokesman for the administrator John Star said a report was currently being prepared
and was due to be presented to a meeting of creditors tomorrow.

If the report and its terms and conditions are accepted by the secured creditors tomorrow,
another meeting to ratify it will be held the following week, after which the union members
will be paid their entitlements within 30 days, he said.

Details of the deed of agreement were being sorted out between the two main secured
creditors during weekend talks, he said.

AAP sb/ah/BWL

KEYWORD: SACKED CREDITOR (CARRIED EARLIER)

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