KPMG’s Tim Michael.KPMG partner John Lindholm.A recent judgment of the Federal Court of Australia underscores the Himalayan hurdles facing insolvency practitioners who seek the court’s approval for payment of remuneration yet to be earned from assets held on trust.The protagonists in this matter are Tim Michael and John Lindholm, two of the plethora of “Special Advisors” swelling KPMG’s senior ranks since it swallowed the Ferrier…
Jirsch Sutherland’s Malcolm Howell.RRI Advisory’s Liam Bellamy. It’s been some time coming – perhaps the elevation of Labor to federal eminence got in the way – but down under’s most intimidating creditor has resumed flexing its litagatorial muscle, in this case in respect of fees the now ex-receivers of Castel Electronics Pty Ltd paid themselves and the divvy they fed the secured.iNO first canvassed the…
HoganSprowles partner Christian Sprowles.It can be ticklish being both receiver and liquidator of a corporate trustee and Christian Sprowles is one practitioner who knows all about it.The Hogan Sprowles‘ principal was appointed liquidator of CWCN Pty Ltd, the trustee of the CWCN Unit Trust on March 4, 2020.After discovering that although the company was assetless the underlying trust was anything but he had the courts…
Mackay Goodwin’s Mitchell Ball. If the challenge outlined on Monday in the NSW Supreme Court proceeds, it may qualify as one of the most ill-advised attacks by a director on a liquidator’s fees mounted in many a year.That at least seemed be the opinion of presiding judge David Hammerschlag after hearing submissions on behalf of Mr Tracey Fellows, one of two directors and shareholders of…
Hall Chadwick’s Richard Albarran. Hall Chadwick’s Richard Lawrence.One thing to be said about Hall Chadwick duo Richard Albarran and Richard Lawrence is that they won’t die wondering.Despite indicators suggesting any attempt to recover their final fees and costs from the controversial Tauro Capital appointment should be categorised as heroic, the pair are pressing ahead.To this end a notice of intention to apply for remuneration, originating…
Hall Chadwick’s Richard Albarran. Equititrust Income Fund receiver David Whyte.When you tell creditors that you won’t seek to recover your fees from a related entity and the receiver of that related entity is present, it’s best not to renege.Even the most well-meaning of practitioners can come to regret backflipping on an undertaking and in the case of Equititrust Limited (in Liquidation) (EL) and the Equititrust…
Cor Cordis partner Jeremy Nipps.i-Prosperity Underwriting receiver David Levi.Back in August 2020 iNO predicted that the liquidators appointed to various entities within the i-Prosperity group might have trouble persuading creditors to approve future resolutions pertaining to their remuneration.As confirmed by the Minutes of the most recent meeting of the i-Prosperity Pty Ltd Committee of Inspection (COI) that forecast was spot on.By abstaining from voting on…
Hall Chadwick partner Kathleen Vouris. Last week saw one of those scenarios – not entirely uncommon – where the chair of a deadlocked meeting has to give effect to the phrase “creditors will determine the future of the Company”.As well as defenestrating the spirit of the term in its purest sense, chairman or chairwomen choosing to use their power to break a deadlock invariably create…
Grant Thornton’s Mike McCann.Mackay Goodwin’s Domenic Calabretta. Creditors’ distaste for fees is on full display this week with the release of the Minutes of the May 11, 2022 meeting of CRCG Rimfire (CRCG).The meeting was convened upon the application of creditors seeking to oust incumbent CRCG deed administrators Mike McCann and Said Jahani who are believed by certain creditors to have levied excessive fees since…
Mackay Goodwin’s Mitchell Ball. You’d think a liquidator who’s scraped together enough moola to declare a surplus might earn some plaudits from the intended recipients.Many if not most liquidations after all generate nothing more than zero for creditors and hours of unremunerated work for appointees, so any kind of recovery is grounds for relief if not celebration. Expressions of gratitude from certain stakeholders in the…