The latest chapter in the fight by Richard Albarran and Richard Lawrence to be paid outstanding remuneration for their time as liquidators of start-up accelerator Tauro Capital (Tauro) could be cut short if Tauro creditors like the latest solution being proposed.
Today it’s expected that the current liquidators of Tauro will distribute a report that includes a proposed settlement aimed at discontinuing proceedings Albarran and Lawrence have on foot in the Supreme Court of Victoria.
Those proceedings were commenced last year after Tauro creditors – of which the ATO is the largest – refused to approve remuneration claimed by Albarran and Lawrence in the wake of their replacement by PKF’s Paul Allen and Jason Stone in October 2020.
Given the degree of criticism that attended Albarran and Lawrence’s handling of the Tauro liquidation it was no surprise when the ATO and other creditors filed objections to the former liquidators’ claim.
In an 82 page affidavit obtained by iNO the ATO’s senior insolvency advisor Gary Busby outlined six grounds of objection to the former liquidators’ remuneration application included insufficiently detailed time sheets, duplication of work and work undertaken by excessively senior staff, with more than a third of the work for which remuneration was being claimed performed by partners.
Nor was this the only ammunition provided.
When creditors asked the liquidators to convene a meeting to vote on replacing them, they were told to deposit $11,000 including GST to cover the meeting’s cost.
After the ATO intervened that amount was reduced to $5,500 plus GST.
Elsewhere Busby commented that the former liquidators: “charged 84 minutes per page for producing 11 pages of minutes (12.6 hours in total preparing minutes) for a 1.5 hour meeting in a small, simple, assetless administration”.
Busby’s affidavit was prepared in December 2022 but according to iNO’s mail, a recent change of personal has coincided with the tax office losing all stomach for the fight.
We understand that the ATO’s dealings in the Tauro matter are these days being directed by Kerry Davies, and she is behind the settlement proposal being distributed today.
If approved Albarran and Lawrence will not only get a portion of their claimed remuneration but will also be paid their legal fees, which currently stand at $65,000. Their lawyers Ben Skinner and Amy Weiner will be pleased.
Further, the settlement might just ease tensions between Albarran and Lawrence generated by the latter’s decision to defect to Mackay Goodwin and the former’s decision to force Lawrence to serve out his full six months at Hall Chadwick before departing.
It’s expected that the creditors’ vote on the proposal will be formally announced in 21 days.
Further reading:
ATO attacks liquidators’ fee bid on multiple fronts
Hall Chadwick Duo Preparing Hail Mary Fee Application
Brawl Abrewin’ As Ex-Liquidators Covet Funds In Trust
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