Credit union members get back 70 times what they paid
The impending closure of Holden’s Adelaide manufacturing facility in 2017 will have a harsh impact on local businesses and their employees, which supply parts to the car industry.
Worrells’ Adelaide partner, Nick Cooper, assisted one major supplier of parts to the industry to give an unexpected bonus.
The supplier operated an in-house Credit Union for the benefit of the vast number of its employees. To become a member, they were required to purchase a parcel of ten $1 shares. Meaning, someone could become a member at a cost of $10.00.
News of the Holden manufacturing facing closure meant that the supplier (along with others) had to assess the viability of their business. With the gradual reduction of its workforce, they determined that it was no longer desirable to continue operating the Credit Union. The members resolved to wind-up the company and Nick was appointed as a members’ voluntary liquidator to collect its assets, pay the liabilities and distribute the surplus to its members.
The Credit Union’s loan portfolio was sold to a major public Credit Union, which also offered members new accounts and other member services. After Nick had realised the assets and paid the liabilities, there was a substantial surplus held for the benefit of the members.
That benefit was nothing short of substantial.
The dividend that Nick distributed to the members on a parcel of ten basis, worked out to be $753 per parcel of ten (10) shares. A return in excess of 70 times of what they paid is certainly exceptional and more importantly, a welcomed bonus to the members—particularly for those facing loss of their employment.