Scott McLaughlin Racing Pty Ltd Vs Stone Brothers Racing

[kittle]

Well this is new to me!!!

Courtesy of the RSR Facebook page

In 2012 Stone Brothers Racing in conjunction with Scott McLaughlin Racing Pty Ltd won the Development Series. Everyone was very happy in victory and I was told I was like a father to Scott. However money is still owing by Scott McLaughlin Racing Pty Ltd to Stone Brothers Racing. We have been pursuing this money through the courts over the last 3 years. We have now been notified that Scott McLaughlin Racing Pty Ltd is insolvent and a month or so ago had a liquidator appointed. A sad end to what began with a promising start - Ross Stone

It certainly puts a bad name to Scotty and where he has come from.

[yap]

Strange that when it has been through the courts for the last 3 years there hasn't been a mention of it anywhere??

Obviously there are 2 sides to every story, but Ross must feel particularly aggrieved to put this out in public.

[davester]

When it comes to trans-Tasman motorsport deals, I'm afraid its CASH UP FRONT "only". More than a few bad apples have tarnished the reps of the good. I've never been burnt (yes I insisted on cash up front every time). Those times when it was a deal breaker, those who extended credit to these same people never got paid.

[TWRv12]

Maybe Scott will have to re-mortgage the house....

[GTRMagic]

Makes sense perhaps why Mr McLaughlin didnt get an SBR seat too....

[Mixer]

There are quite strict rules about running a Proprietary Company when the primary work is a single consultant or employee.

Got to be a prickly subject for a racing driver.

[kittle]

Originally Posted by GTRMagic

Makes sense perhaps why Mr McLaughlin didnt get an SBR seat too....

Its disappointing to see this happen. Specially when SBR put in all the work for him. Scott brought the sponsors but just didn't pay the bills!!

SBR got done over by Team Kiwi and now this too!!

[Mixer]

I'd be a little careful though, there's probably 3 stories in this... One side, the other side, and the actual truth.

[Starion13]

All may not be lost for Ross and SBR. Scott's company, being in liquidation, gives him some interesting options. Assuming Scott is/was a director of the company, he has a fiduciary responsibility not to engage or commit the company to any financial undertakings if "to an ordinary person" it is apparent the company may be insolvent at the time and unable to pay its debts as and when they fall due and/or likely to become insolvent as a result of the transaction. Its called "Insolvent Trading". In such circumstances and if proven, the officers of the company can be held personally liable for the debt incurred. If Ross, via the liquidator, can prove that Scott undertook a financial obligation without the necessary ability to pay then the Liquidator has a right of action against Scott personally. Once that is established (via the courts) he can lodge a caveat on Scott's house as he now has a financial interest in Scott's asset(s). The liquidator can pursue the debt via the courts and have options ranging from garnishee orders on bank accounts or wages, to petitioning for bankruptcy if matters are extreme enough. Ugly stuff that a young guy like Scott could well do without at his stage of his life and career.

Given the game Scott plays in, he'd be very wise to front up to Ross and come to an arrangement to get the debt paid and maintain a good reputation and goodwill. I dare say the racing community hold Ross in high enough esteem to see any wrongs righted, particularly in light of the squabble with the other Kiwi ex member of the team. His boss would be half decent if he stepped in and 'assisted' Scott to sort it out amicably and professionally. Running for cover under company insolvency is not a smart long term strategy in any game.

Proving the company was insolvent or likely to become insolvent at the time of the transaction is his best course of action but of course not easy to do but with a decent liquidator in place he will have access to the books and records of the company at the time and from there can determine his options.

Interesting times ahead.

[Environmentalist177]

Starion13, Scott's Dad, Wayne, owners and directs the company. Its the same story with his New Zealand Entity which Owed/Owes money to V8 Supertourers 2013 Ltd (Now in Liquidation).

Also when you think about it, at the time Scott would have been too young to properly own and direct a company.

[Mixer]

He is also old enough now to make it right to those that helped him get to where he is.

[Forda]

This might be the sort of thing Mick Gatto debt collections would be effective for.

[Bugger All]

Originally Posted by Forda

This might be the sort of thing Mick Gatto debt collections would be effective for.

Sounds more like a job for Les Norton and Eddie Salita....

[Henry]

Originally Posted by Bugger All

Sounds more like a job for Les Norton and Eddie Salita....

they did a pretty good job collecting on that mug that desecrated the Tomb of Kareem...AIEE AIEE!!

Motor racing would certainly prove an eventful setting for some of Les' adventures...

[Denosaur]

Originally Posted by Environmentalist177

Starion13, Scott's Dad, Wayne, owners and directs the company. Its the same story with his New Zealand Entity which Owed/Owes money to V8 Supertourers 2013 Ltd (Now in Liquidation).

I think the line "I was told I was like a father to Scott" I think is a dead give away that this beef is with someone else who was in-control of the company/payments.

What's annoying thou in all this is that everyone hold Ross Stone in such high regard and respect, but then he goes and airs his dirty laundry in public. I certainly don't have any respect for people who decide to use social media for such purposes. Does he think someone is going to cut a cheque magically now??

Let not forget at the same time, does the company Stone Brother company that they owe money to exist today, or did it get wound up after the sale to Erebus??

[mayhem]

Originally Posted by Denosaur

I think the line "I was told I was like a father to Scott" I think is a dead give away that this beef is with someone else who was in-control of the company/payments.

What's annoying thou in all this is that everyone hold Ross Stone in such high regard and respect, but then he goes and airs his dirty laundry in public. I certainly don't have any respect for people who decide to use social media for such purposes. Does he think someone is going to cut a cheque magically now??

Let not forget at the same time, does the company Stone Brother company that they owe money to exist today, or did it get wound up after the sale to Erebus??

I gotta say I agree with this. I found this whole thing odd, a man of Ross' stature (and age) in pitlane reverts to any type of social media to talk about this is a bit off. Put it another way, how would we all be reacting if it was in one of Betty's 'Dear Creator' rambles?

[anthony81901]

Originally Posted by Denosaur

Let not forget at the same time, does the company Stone Brother company that they owe money to exist today, or did it get wound up after the sale to Erebus??

Presuming the contract was with Stone Brothers Racing Pty Ltd, then yes. https://connectonline.asic.gov.au/Re...te=ckzrbq0x5_4

[TWRv12]

On twitter too
https://twitter.com/rossstoneracing

Must be trying to increase pressure on Scott

[Snowman.]

Originally Posted by Environmentalist177

Starion13, Scott's Dad, Wayne, owners and directs the company. Its the same story with his New Zealand Entity which Owed/Owes money to V8 Supertourers 2013 Ltd (Now in Liquidation).

Also when you think about it, at the time Scott would have been too young to properly own and direct a company.

I understand he also owes a LOT of $$$ to the Aussie team than ran his SuperTourers outfit in 2012.

Sad really.

[Denosaur]

Originally Posted by TWRv12

On twitter too
https://twitter.com/rossstoneracing

Must be trying to increase pressure on Scott

Very out of character to be honest...

Also, why do this now?? I don't remember such things after the whole SVG drama and even during it. The SBR camp kept rather quiet. And what happened to court proceedings there?? Why no rant??

[peckstar]

Originally Posted by Denosaur

Very out of character to be honest...

Also, why do this now?? I don't remember such things after the whole SVG drama and even during it. The SBR camp kept rather quiet. And what happened to court proceedings there?? Why no rant??

SBR were not involved in the SVG issue, they had sold the team by then

not sure he owed them money either

[chavez]

Originally Posted by mayhem

I gotta say I agree with this. I found this whole thing odd, a man of Ross' stature (and age) in pitlane reverts to any type of social media to talk about this is a bit off. Put it another way, how would we all be reacting if it was in one of Betty's 'Dear Creator' rambles?

But McLaughlin's supporters would be users of social media and the likely target of such messaging.

[Axeman444]

Originally Posted by chavez

But McLaughlin's supporters would be users of social media and the likely target of such messaging.

But it is McLaughlin Snr who owes the $$, not McLaughlin Jnr, and as such supporters of McLaughlin Jnr who wouldn't know anything different may then take a different view of McLaughlin Jnr

[Mixer]

Originally Posted by Axeman444

But it is McLaughlin Snr who owes the $$, not McLaughlin Jnr, and as such supporters of McLaughlin Jnr who wouldn't know anything different may then take a different view of McLaughlin Jnr

This is semantics though, providing what is being said is true, Scott should make it right.

[Umai Naa]

Originally Posted by Snowman.

I understand he also owes a LOT of $$$ to the Aussie team than ran his SuperTourers outfit in 2012.

Sad really.

Melbourne Performance Centre.

Going public is usually a last-ditch effort. Hope it gets resolved.