Brindabella Christian College’s slate looks like being wiped clean. Photo: Region.
The proceeds from the sale of Brindabella Christian College to Christian Community Ministries will be enough to clear the former school administration’s $6.1 million tax debt, a Federal Court heard today (21 May).
An adjourned application to wind up Brindabella Christian Education Ltd, which went into voluntary administration on 5 March, resulted in a further adjournment until 20 June.
Lawyer Brad Whitbread for the Deloitte administrators told the court that the administrators had entered into a substantial sale agreement for the school assets, which they expect will result in the ATO’s debt being paid in full.
“It’s simply a matter of completion timing now,” he said.
READ ALSO: What is parental alienation and how do you stop it before it’s too late?
In its announcement that the sale had been completed, administrator Sam Marsden said the sale price was confidential but a “strong outcome” was expected for creditors.
At 14 March 2025, the BCEL owed about $23.8 million to creditors, comprising $1.4 million to employees, $9.5 million to secured creditors, including NAB ($9.3 million), $4.1 million to parents (for tuition fees paid upfront), $6.1 million to the ATO and $2.7 million to suppliers.
The administrators would not say if there would be enough to pay out NAB and the other creditors.
It is understood that a dividend has not been calculated, and the final details are still being worked out.
That will be included in the second creditors’ report, which will be issued ahead of the second creditors’ meeting, which has to be called by 3 August but can be held within five days, and may well be called sooner than the August deadline.
The administrators also would not say if there were still any outstanding matters between the ATO and the former BCEL directors, such as penalties.
The school’s reform lobby welcomed news that the sale result was strong enough to settle the tax debt, but said attention should now turn to those who allowed BCC to slide into insolvency.
“Parents are left wondering, how will the former directors be held responsible? It is not enough to resolve the balance sheet. Justice and transparency must follow,” Reform BCC said.
READ ALSO: Couple’s stamp duty concession scrapped after the fact, and it nearly sent them bankrupt
The group also lashed the regulators for the glacial pace of oversight that allowed the situation to escalate despite years of concerns raised by key personnel, executives and community members as far back as 2017.
“Many had provided credible evidence and testimony pointing to persistent mismanagement and financial incompetence by the former proprietor and school board, some losing their jobs as a result,” Reform BCC said.
“That this type of financial mismanagement in a charity was allowed to continue unchecked for so long, with children’s care and education on the line, is evidence of a system of oversight that demands further scrutiny.
“We call on relevant authorities and regulators to ensure those responsible are held to account and that meaningful reforms are enacted to prevent such failures from ever happening again.”
