Reply To: non-current liabilities

CAN ELLGEE PTY. LTD. ACN 69436083912 #6565

Several years ago we made a decision to split the company into 2 halves, 1 being hoses and the other tubing. The idea was to sell the hose division. (Pressure Connections). Unfortunately the market declined and the sale was not possible.

The loan account is because the new company (piping) is now our daily trading company. There has been a diminishing number of loans for machinery, and ongoing running costs (i.e.: insurance) etc. that have been covered by the new company. Eventually these loans will  disappear. Two have the final payments due this month. Leaving 1 more.

There is still a number of assets in the old company that are utilised in the new company.

We are taking tax advice on how to move forward with the situation.

I hope this explains your question.