EXCLUSIVE: Pavlovic’s Modular Touring owes creditors $1.3m

Stephen Pavlovic’s Modular Touring owes $1.3 million to creditors and is in the final stages of liquidation, TMN can exclusively reveal.

Since its inception in 2002, the company has been behind national tours from Lady Sovereign (2007), Daft Punk (2007), LCD Soundsystem and Hot Chip (2010), Presets (2008) and Jonathan Boulet(2012).

However, Modular Touring entered external administration in July 2013 after its creditors appointed liquidator Adam Shepardof Sydney insolvency firm Farnsworth Shepard.

According to a report submitted to the Australian Securities and Investments Commission (ASIC) this month (October 13), Shepard will have finalised the liquidation in 3-4 months time.

TMN has reached out to Pavlovic for comment.

TMN has obtained the full list of creditors who are collectively owed $1.3 million from Modular Touring.

Separated into categories, Modular Touring owes Equipment & Staging Suppliers approximately $280K, Casual Staffing $180K, Workers Comp $116, and over $400K in various taxes and super.

Staging etc.

Insurance

QBE Workers Compensation NSW – workers comp – 116K+

GIO Insurance -$7K+

Staffing

Cornerstone Services Australia – $168K+

TLH Group Holdings – 10K+

Tax

Australian Taxation Office – $312K+

Office of State Revenue – $132K+

Farnsworth Shepard’s report with ASIC notes it has sought funding for preliminary investigations into Pavlovic’s “possible offences and other misconduct.” It states no funding has been put forward from ASIC, the creditors, the Deputy Commissioner of Taxation, or litigation funders.

Source: Email sent to creditors on October 13

In an email sent to creditors this week, and obtained by TMN, Farnsworth Shepard said it is unable to conduct further inquiries without funding.

Source: Annual Report to creditors

The same email states the cost of the investigation into “directors and all relevant parties” would cost no less than $30,00 – $50,000 with legal fees potentially charged to creditors costing between $20,000 – $40,000.

A representative of Farnsworth Shepard told TMN any action against Pavlovic is “unlikely” without any funding for the investigation.

Pavlovic made headlines in June 2015 when Universal Music Australia (UMA) sued him over the pair’s co-owned label, Modular Recordings.

As reported by TMN, which attended the Supreme Court proceeding in Sydney, the suit involved a settlement deed for the termination of Pavlovic’s employment at UMA.

At the time, Justice Sackar said Pavlovic was bound by the terms of a2014 settlement agreement with UMA despite the fact he decided not to sign the final of four settlement deeds sent from UMA.However, in October 2015, the NSW Court Of Appeals overturned the ruling.

Taking toFacebookat the time Pavlovic said: “After 12 months of litigation, a waste of time, a waste of energy, a waste of money and a shit ton of stress the NSW court of Appeal just ruled in my favour and blocked Universal Music from taking my 50% shareholding in Modular Recordings.”

It should be noted here that Modular Recordings is controlled by UMA and both labels are entirely separate entities from Modular Touring.