A dental manufacturing company in Sydney, VTS Dental, has entered liquidation, leaving creditors and employees owed more than $1.4 million. Based in Canterbury in Sydney’s southwest, the business went into administration in December. Last week, creditors pushed the company into liquidation because no rescue proposal was offered by the director.
Documents show VTS Dental owes an estimated $1.35 million to unsecured creditors, including nearly $277,000 to statutory creditors and about $650,000 to trade creditors. Related parties are also owed close to $400,000, and employees are waiting on $55,781. Unsecured creditors are expected to recover only a fraction of what they are owed, between 26 to 51 cents for each dollar.
The liquidators estimate that VTS Dental’s assets could be worth between $424,142 and $803,741. These assets include cash, debts owed to the company, and loan accounts. The company’s equipment and vehicles are being sold, but the prices and buyers have not been made public. A related entity, not named, claims ownership of some machinery and two luxury cars, an Audi and a Mercedes.
Meanwhile, VTS Dental’s website now redirects users to NovaDent Labs, a dental laboratory based in Yagoona, Sydney. NovaDent Labs says it provides high-quality dental solutions such as prosthetics, implants, and appliances. Both companies list Dr Sanad Al Murayati as their sole director. Despite VTS Dental’s collapse, Dr Murayati highlights his two decades of experience and achievements on NovaDent Labs’ website.
According to administrator and liquidator Amanda Lott, VTS Dental failed because of cash flow issues, poor management, and disputes among shareholders. The tensions led to payment demands from a key supplier, Next Lab Joint Stock Company (NEC Vietnam), which is believed to be linked to shareholder Xuan Viet Nguyen. NEC Vietnam has filed a $606,805 claim against VTS Dental, but this claim is disputed. The liquidator is also investigating payments totaling more than $77,000 for unknown purposes, which may be voidable transactions. Any legal recovery could be complicated as Mr Nguyen is said to have personally loaned money to the company. Management records show VTS Dental owes Mr Nguyen $368,006.
VTS Dental also has outstanding loans with related companies and is owed about $457,000 in trade debts. NovaDent Labs was contacted for comment but has not responded. The collapse of VTS Dental is expected to have significant effects on its employees, creditors, and the wider dental laboratory industry in Sydney.