Further details on the financial struggles of Ballarat beverage manufacturer Brink Drinks have been laid bare at a creditors' meeting.
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The meeting on May 17 saw Brink's creditors, owed a collective total of more than $2 million, discuss the next steps forward for the embattled company.
Brink entered voluntary administration on May 8, appointing administrators from PwC.
At the meeting, creditors heard Brink had ceased trading, and had made the majority of its employees redundant.
A small amount of staff were retained to "assist with debtor and stock realisations", and to "supervise the decommissioning, maintenance and inspections of the plant and equipment".
Plant and equipment at the company's Grandlee Drive facility had been valued for sale.
Administrator Michael Fung said there was "no formed view on the estimated return to secured creditors, priority creditors or unsecured creditors", but that unsecured creditors were unlikely to see a return.
Mr Fung said Brink had been facing cash flow difficulties, had been "loss making for a while", and was in a net current liability position at the time it entered administration.
Investigations into whether the company was trading while insolvent, and potential breaches of directors' duties, would be part of the administrators' handling of the business going forward, Mr Fung said.
Several of Brink's clients were at the meeting, and asked about stock they had paid for which was sitting in the company's Wendouree site.
Administrators will prepare a report on company activities and property ahead of the next creditor's meeting.
Creditors will then vote on whether to enter into a deed of company arrangement, to keep the business trading, or liquidate the business.
The Courier repeatedly contacted Brink Drinks for comment, via phone and email, but was not given a response in time for publication.
