Tuftmaster Carpets and Tuftex Carpets - Case Update

The convening period for the second meeting of creditors of Tuftmaster Carpets and Tuftex Carpets has been extended for up to three months to May 23 over the objections of the Construction, Forestry and Maritime Employees Union (CFMEU), an organisation of employees whose manufacturing division is a creditor of Tuftex in relation to unremitted union membership fees, who were concerned about the delay in accessing entitlements under the Fair Entitlements Guarantee Scheme (FEGS).

The Court was concerned that the administrators’ attempts to sell the business or its assets would be thwarted if the extension were not granted.

The Court acknowledged there will be some delay in accessing employee entitlements under the FEGS, but found that the delay may well be less three months. 

Read the decision here.