Bill Express (BXP) owes me close to $2,000 in unpaid fees for each of my newsagencies. These debts are growing by an estimated $500 a month across the two businesses. In the four months that Bill Express has not paid the Advertising Rebate it guaranteed in writing in 2003, its indebtedness to newsagents for this has increased by at least $3 million. Its indebtedness is considerably higher if you add in the rebate tied to the equipment lease – estimated to be at least $3.5 million.
While the Bill Express directors will argue to the ANZ and other key creditors that they do not owe the money to newsagents, courts will be left to decide that. Newsagents are stumping up cash to fund various legal moves against Bill Express. With in excess of $6 million at stake and this accruing by more than $1 million a month it is no wonder newsagents are prepared to fund legal action.
My speculation is that the question over the company’s growing financial exposure to newsagents is one reason their mooted restructure has been stalled. I would expect that creditors would want to know that the Bill Express hole is not getting deeper by the month before they agree to new financing arrangements. Creditors would be well advised to talk direct to newsagents.
When I signed for Bill Express I did so on the basis that the Advertising Rebate of $210 was guaranteed. The company stopped paying this guaranteed rebate in February without reason. At the same time it advised it would withhold around 30% of my bill payment commission to advertise the service. No advertising has been done. I want the 30% back so I can put it to better use in my business.
In the meantime, I am contributing to a group legal action against the company.
Hi Mark, which group are you contributing to, is it the ANF? Or are you going through a state group. I’m in SA & the only option that seems available to me is the ANF but are they going to do the right thing. As with the amount of mud that has been thrown in the fiasco some of it will stick.
Neil,
I am not contributing to the ANF fund because the ANF is conflicted in the matter of Bill Express. My contribution will be through Victoria for reasons which will mke sense next week.
You could talk to NANA. Their action is accepting any newsagent or wait and see what emerges next week.
Alternatively, you could organise a group of SA newsagents to meet and discuss. I’d be happy to provide a platfrom for promoting and facilitating that.
Mark
Mark,
how do I get involved with the Victorian Action
Helen there should be news in the next couple of days. Mark
Mark,
Is there case for legal action if I take over Bill Express from the previous owner?
Chris you are best off obtaining your own legal advice on this.