William Buck pair resist removal bid for now

William Buck’s Rob Whitton and Brendan Copeland have temporarily fended off an effort to have them removed as liquidators of Ridley Capital Holdings (RCH), a company controlled by architectural entrepreneur Joshua Ridley, after a judge ordered that their foreign nemesis must first stump up $45,000 as security for costs. In a judgment handed down this week Supreme Court Acting Justice Reg Barrett decided that the Californian-domiciled plaintiff,…

letter to judge labelled "extraordinary"

Judge labels liquidator’s letter “extraordinary”

It’s not often that a liquidator writes to a judge requesting that the judge discontinue proceedings in which the liquidator is in control of the plaintiff. It’s probably even rarer for the judge to publish the letter. But it’s happened, courtesy of a judgment from acting Supreme Court Justice Reg Barrett and an unfortunate epistolary impulse indulged by liquidator Andrew Wily. Typically the circumstances giving…

Unfair preference claims are becoming a minefield for liquidators

Unfair preference claims riskier

Kemp Strang’s Peter Harrison has delivered a compelling summary of the risks attending to claims for unfair preference payments in the context of the May 13 judgment of Federal Court Judge Jim Edelman In the matter of FPJ Group Pty Ltd in Liquidation. The humbling affair involved Hall Chadwick’s David Ross – as liquidator of FPJ Group Pty Ltd  – going after FPJ’s supplier, CSR Building Products. Ross…

Mental illness and bankruptcy: are they such uncommon bedfellows?

Bankrupt’s mental illness excuse dismissed

As Australia’s population ages and the costs of modernity multiply, insolvency practitioners will find themselves dealing more frequently with clients unfit to exercise their responsibilities and obligations. This story is not about them. This story is about a bankrupt whose attempts to be exempted from a public examination on the grounds that it would exacerbate her mental illness have come to naught in the Federal…

liquidator fails to measure up

Judge clouts Dinoris over duties

The Federal Court has ruled that Vincents partner Peter Dinoris failed in his duties by not contacting the director who appointed him voluntary liquidator of her company, despite the director transferring $236,500 from the company’s bank account just days prior to his appointment. In a judgment handed down last week, Federal Court Judge John Reeves found that “Mr Dinoris contravened s 180(1) of the Corporations Act by failing…

A judge has again expressed concerns about liquidator's fees for a straightforward winding up

100 cents in the dollar but judge questions fees

Some might have missed the remarks of Federal Court Justice Michael Wigney recently, which seemed to convey less than complete satisfaction with Richard Stone’s remuneration after the RSM partner made application for special leave to distribute a surplus generated from the winding up of Goldana Investments. Specifically, the judge seemed concerned about the level of fees when set against the seemingly straightforward nature of the job….

Arnautovic to pay $20k personally

Jirsch Sutherland’s Sydney head has been ordered to pay up to $20,000 from his own pocket after a judge ruled he displayed a “degree of unreasonableness” while liquidator of a company connected to a dispute over building works on Sydney’s Northern Beaches. The unusual hip pocket penalty came courtesy of Supreme Court Justice Ashley Black, who found that Jirsch managing partner Sule Arnautovic should have given…

BRI Ferrier replaced after appointment imbroglio

Geoff Grainger and Brian Silvia are licking their wounds after fumbling an appointment that’s seen the BRI Ferrier pair ditched in favour of Sule Arnautovic and Andrew Spring from Jirsch Sutherland. The awkward detail is contained in the judgement of Federal Court Justice Jayne Jagot, who heard an application from Grainger and Silvia seeking an order to validate their appointment as voluntary administrators of A.C.N….

Why ASIC’s gunning for Victorian liquidator

ASIC’s pursuit of a Federal Court inquiry into Ross McDermott is focussed on determining whether the Victorian insolvency practitioner (IP) faithfully fulfilled his obligations in terms of his duties and entitlements across 26 companies. However apart from listing the 26 companies across four schedules ASIC’s originating process doesn’t give much away. The inquiry sought falls under under Sections 536 and 477 of the Corporations Act…