Shock, Australia’s biggest indie record label, was insolvent two months before directors put it in to liquidation, company administrators have revealed. Hall Chadwick’s David Ross told creditors that it appeared “the company was insolvent from at least June 7, 2010’’. This is when Shock shut down three subsidiaries, which included the publishing division. The creditors meeting several weeks ago voted to wind Shock up after it was revealed that it had paid back a loan worth $5.1 million to the National Australia Bank after selling the company to CD duplicator Regency for $5.7 million shortly before being forced in to administration. In the meantime, although the sale to Regency funded the entitlements of 30-odd warehouse staff in Melbourne who lost their jobs as part of the deal, in total the remaining unpaid creditors are still owed $4.2 million.
