Nov 2018 | Foodora offers to pay less than half amount claimed by creditors

Date: 8 Nov 2018

Source: The Age

The German parent of collapsed food delivery company Foodora Australia is offering to pay back less than half the wages, superannuation and tax bill claimed by creditors including workers and the Tax Office.

According to a creditors' report released on Thursday by administrator Worrells, Delivery Hero has proposed a deed of company arrangement under which it will pay $3 million.

Worrells recommended creditors accept the deed, rather than winding up the company or handing it back to the directors, in part as there were "insufficient realisations to meet all outstanding claims in the company".

The administrator estimated workers had been underpaid $5.5 million based on its conclusion "that it is more likely than not that the delivery riders and drivers should have been classified as casual employees instead of contractors".