The liquidators of Ally Fashion Pty Ltd have conjured a deal that will see the winding up of the company stayed and 25 cents in the dollar made available for unsecureds, assuming an improved deed of company arrangement (DoCA) proposal garners sufficient support at a meeting to be convened.
“It seems to me that the Court would generally exercise caution in appointing voluntary administrators nominated by a deed proponent in order to assess the adequacy of a DOCA proposed by that deed proponent, particularly where their staff have been apparently involved in the preparation of documents that are then used to support that DOCA.” Justice Ashley Black.
No doubt a notice of meeting in draft form has already been prepared by staff of the Ally Fashion group’s liquidators Duncan Clubb and Jeff Marsden of BDO.
With the orders made in the NSW Supreme Court yesterday by Judge Scott Nixon all that’s to do is notify ASIC that the pair have been granted leave to appoint themselves as administrators and get an update and notice of meeting to creditors. (See: In the matter of Ally Fashion Pty Ltd (in liquidation) [2025] NSWSC 479)
Yesterday’s outcome came about after the first attempt to get a DoCA before creditors failed, largely because the proposal propounded by sole Ally shareholder and director David Dai was not something Clubb and Marsden would endorse.
Initially Dai sought to overcome the liquidators’ resistance be applying directly to the courts for an order that the winding up be stayed and that the court appoint Hall Chadwick parter Richard Albarran as administrator.
That attempt foundered for several reasons, the main one being that Justice Ashley Black declined the arguments of Dais’s counsel David Stack who had sought to persuade the court that it had the power to to appoint administrators to a company in liquidation that had never been in administration.
His honour did however sprinkle his decision In the matter of Ally Fashion Pty Ltd (in liq) [2025] NSWSC 268 with the seeds of as solution that gave Clubb and Marsden the whip hand and it became clear during yesterday’s hearing that Dai had taken their concerns to heart.
After Black delivered his decision on March 21 Dai retained PwC and Johnson Winter Slattery, the former to develop a viable turnaround plan and the latter to provide the necessary legal expertise to ensure the next visit to the court would succeed. But that wasn’t all.
Dai still had to persuade Clubb and Marsden that his proposal was something they could recommend and that required him to tip more cash into the proposed fund, lifting the initial sum from $500,000 to $700,000. And the extra $200,000 had to come from Dai personally and he has
Clearly he found it. These rag traders crying poor? Please.
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