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Corporates

ATO, Conflict, Corporates, Directors, Independence, Judgment, Liquidators, Litigation, SPL 10 April 2024

Liquidator can’t overcome conflicted claims

John Sheahan of Sheahan and Lock. Well this is rich. Directors conflicted to their eyeballs, objecting to a liquidator’s application to be appointed liquidator on the basis that he’d be conflicted. And a judge agreeing.Of course, in an administration involving an impugned corporate group, dubious inter-company loans, deeds of settlement and of release, Swiss accounts and Israeli banks, industrial-scale tax avoidance and jurisdictional departures, exhuming…

Corporates, Costs, Directors, Judgment, Lawyers, Liquidators, Litigation, Receivers 13 March 2024

Liquidator prevails over entity without a bank account

DV Recovery Management’s Daniel O’Brien.It’s tough to argue that a company isn’t impecunious when it doesn’t have a bank account. Just ask the Sydney barrister who turned up to advocate for this proposition before NSW Supreme Court corporations judge Ashley Black on Monday.The barrister – Daniel Krochmalik of 3 St James – has had plenty of experience and some success before Black J but even…

Administrators, Conduct, Corporates, Creditors, Judgment, Litigation, Public Examinations, SPA 6 March 2024

Deloitte duo’s Callide migraine persisting

Deloitte partner Richard Hughes. Deloitte partner Grant Sparks.Following their appointment in January as Special Purpose Administrators (SPAs) of IG Power Callide Pty Ltd (IGPC) FTI Consulting’s John Park and Ben Campbell moved swiftly to ensure their general purpose equivalents didn’t impose burdensome obligations that might impede their work and yesterday that speed off the mark was rewarded.In Sev.en Gamma a.s v IG Power (Callide) Pty…

Administrators, ATO, Conflict, Corporates, Creditors, Directors, DIRRIs, Independence, Liquidators, Litigation, VA's & DoCA's 23 February 2024

Rival IPs bound for court over alleged $150m fraud

Jones Partners principal Bruce Gleeson. Helm Advisory managing director Stephen Hathway.Rival insolvency practitioners could shortly be facing off control of a corporate group that’s allegedly defrauded the Australian Tax Office (ATO) of $150 million. Before any showdown with lawyers occurs however, the rivals have time to negotiate a less adversarial outcome thanks to the decision of the administrators of Dalma Form Specialist Pty Ltd (DFS)…

Conflict, Corporates, Directors, Lawyers, Liquidators, Social/Professional 14 February 2024

Liquidators vying for appointment plum

EY director Martie Tziotis EY partner Morgan Kelly. The competitive juices will be flowing in the offices of those vying for the role of court appointed liquidators of Rynever Pty Ltd.At present there’s four candidates from two firms in the hunt with the contest likely to be resolved next week after NSW Supreme Court judge Ashley Black hears argument from shareholders of Rynever seeking to…

Administrators, Conduct, Corporates, Costs, Creditors, Directors, Independence, Judgment, Litigation, VA's & DoCA's 15 December 2023

Liquidator invites adverse findings scrutiny

This may be the cautionary tale to top them all.Levi Consulting’s David Levi.A registered liquidator, making submissions in respect of costs, has – unwittingly we presume – required a judge of the NSW Supreme Court to consider making adverse findings against him. The mother of all own goals, scored on the eve of the new year, though we won’t know till after 4:00pm today, earliest.This…

Administrators, Corporates, Creditors, Directors, Liquidators, Litigation, Litigation Funding, Referrers, VA's & DoCA's 15 December 2023

Dissatisfied directors try again with Hall Chadwick

Aston Chace’s Ian Niccol. Hall Chadwick’s Richard Albarran. When directors don’t get their preferred external administrator, the unwanted incumbent can anticipate consequences.When that company has a toe on a supposedly rich gold deposit then the unwanted appointee can expect those consequences to manifest swiftly, as Sydney insolvency practitioner Ian Niccol recently discovered.The Aston Chase principal was installed by the courts as liquidator of Rio Dorado…

Corporates, Fees, Judgment, Liquidators, Litigation, Litigation Funding, Preferences, Public Examinations, Voidable Transactions 24 November 2023

i-Prosperity giving Cor Cordis plenty to chew on

Cor Cordis partner Jeremy Nipps.Cor Cordis partner Barry Wight.The old adage about biting off more than you can chew and chewing like hell came to mind this week as iNO digested the judgment of Justice Catherine Button in Nipps, in the matter of i-Prosperity Pty Ltd (in liq) [2023] FCA 1446.Her honour was ruling on an application brought by Cor Cordis partners Jeremy Nipps and…

Corporates, Costs, Deed Administrators, Directors, Litigation, VA's & DoCA's 22 November 2023

Casting vote defiance attracts State Revenue ire

Wexted Advisors founder and principal Joe Hayes.Wexted Advisors partner Andrew McCabe.Wexted Advisors founder Joe Hayes may be facing an almighty stoush with the Queensland State Revenue Commissioner (Commissioner) over an unpopular DoCA, but that doesn’t mean he and colleague Andrew McCabe should be prohibited from utilising the deed funds for their defence.” … the allegations made in the Queensland Proceeding in respect of the Deed Administrators’…

Administrators, Conflict, Corporates, Costs, Creditors, Directors, Independence, Judgment, Liquidators, Litigation, VA's & DoCA's, Voidable Transactions 15 November 2023

DoCA focus meant liquidation option ignored

David Levi.If you’re appointed administrator of a company subject to a creditor’s statutory demand and indicate a preparedness to have adjourned the winding up application on foot, it makes sense to turn up with your boxes ticked. Last Friday a court dealt with a practitioner who didn’t.“At the risk of stating the blindingly obvious if I assume I’m gong to win the lottery I can…