Articles by Peter Gosnell

KordaMentha wins Grocon gig

KordaMentha’s Andrew Knight. As flagged by iNO this week, insolvency practitioners from KordaMentha have been appointed voluntary administrators of multiple entities within the Grocon building and construction group. In a statement this morning KordaMentha said Andrew Knight, Craig Shepard and Mark Korda of KordaMentha Restructuring were today appointed administrators to 39 Grocon Group companies. Knight said the administrators were not appointed to the companies associated…


Guillotine evaded, but indemnity costs the price

DCL Advisory’s Thomas Dawson. A recent decision of the NSW Supreme Court has highlighted why liquidators and their legal advisors need not think an absolute guillotine order precludes them from having a fresh crack, though in winning a motion to amend, liquidator Thomas Dawson has also copped an indemnity costs order for delay. In Dawson as liquidator of J R Line and Safety Services Pty…


Jirsch Sutherland veteran quits firm but not game

Departing: liquidator Sule Arnautovic is leaving Jirsch Sutherland after 22 years. After 22 years at Jirsch Sutherland registered liquidator and former managing partner Sule Arnautovic has given notice, saying he expects to leave the firm on March 31, 2021. “On 2 October 2020 I gave notice of my resignation as a partner of Jirsch Sutherland,” Arnautovic announced via social media yesterday. “After 22 years with…


FTI and KordaMentha vying for Grocon VA?

FTI Consulting’s John Park. FTI Consulting’s Kelly Trenfield. It’s been almost a week since media reports emerged declaring that builder Grocon had “put” its troubled construction division into administration, or that directors had “called in administrators”. As of this morning however no formal insolvency appointment has been made, either as voluntary administrator (VA) or receiver. There’s little doubt a restructure if not a formal appointment…


Ferrier Hodgson pair duped by fake mortgages

KPMG’s Max Donnelly. KPMG’s Robyn Duggan. A judge has suggested liquidators and former partners of Ferrier Hodgson demonstrated one of the last desirable characteristics in those responsible for administering insolvent entities – they were too trusting. In Combined Property Holdings Pty Ltd v Galea & Ors [2020] QSC 338 Justice James Henry of the Supreme Court of Queensland in Cairns recounts how Robyn Duggan and…


Seize the pay! Liquidators exonerated as ASIC fails

Olvera Advisors’ Kate Barnet. Liquidator Bill Fletcher. Liquidators Kate Barnett and Bill Fletcher have been exonerated by a committee convened in July this year to consider contraventions ASIC alleged were perpetrated in the early days of the Octaviar liquidation. The allegations were brought to Barnett and Fletcher’s attention in show cause notices under section 40-40 of the Corporations Act issued by ASIC in 2019. After…


Court approves liquidators to derive a profit

Aston Chace’s Vincent Pirina. Aston Chace principal Steve Naidenov. There’s an interesting issue in the recent judgment of NSW Supreme Court Justice Ashley Black, who’s rejected efforts to prevent liquidators from deriving a profit via work done by employees of two incorporated accounting firms with which the liquidators either are or were associated. In the matter of Karim Pty Ltd (in liq) [2020] NSWSC 1603…


Seven month silence earns adverse costs order

Worrells Partner Aaron Lucan. Worrells’ partner Aaron Lucan has been ordered to pay an indemnity costs order personally after indulging a seven month silence in respect of proceedings brought against the Deputy Commissioner of Taxation (DCoT) by a company to which Lucan is the appointed liquidator. “The effect of ordering the first plaintiff to pay the defendants’ costs would be to visit the consequences of…


The risks of tapping proceeds of crime for fees

O’Brien Palmer’s Daniel Frisken. Never presume to position yourself between the Commissioner of the Australian Federal Police and an allegedly ill-gotten dollar. As O’Brien Palmer’s Daniel Frisken has discovered, and as is detailed in the matter of The Commissioner of the Australian Federal Police v Pharmacy Depot Hurstville Pty Ltd (in liq) (No 2) [2020] NSWSC 1571 the outcome is unlikely to prove favourable to…


Ex-VA back as liquidator after incumbent ousted

DW Advisory’s Paul Weston. Worrells partner Simon Cathro. Paul Weston has been appointed liquidator of South Pelagic Holdings Pty Ltd at a meeting convened at the behest of creditors seeking to punt Worrells’ Simon Cathro, whom a court had in February appointed to replace the company’s then administrator, Weston. Independence breach you shrill? No. Not a bit of it. At least not according to Weston…