Litigation

Liquidators ordered to pay $125k each

Pitcher Partners’ Andrew Yeo. Victorian liquidator Ross McDermott. It’s been some time but the wearisome tale of Lonnex, a company connected to the late Dr Geoffrey Edelstein, could be at an end after Pitcher Partners’ Andrew Yeo obtained court approval for a deal that ends the ongoing scrap between major creditor the ATO and Lonnex’s former liquidators. Details of this dispute’s seeming resolution were delivered…


Aspiring SPL likely to meet resistance from secureds

Hall Chadwick partner Sule Arnautovic. WLP Restructuring’s Glenn Livingstone. Another wholly uncelestial body is being positioned to take up orbit around the Jabiru Satellite and Newsat administrations with proceedings commenced in the NSW Supreme Court this month to appoint Hall Chadwick partner Sule Arnautovic as special purpose liquidator (SPL). On Monday the applicant’s counsel David Sulan SC told Justice Ashley Black that Jabiru and NewSat…


High Court refuses dVT duo’s Timbercorp appeal bid

Retired dVT Group co-founder Anton de Vries dVT Group partner Riad Tayeh The High Court of Australia has quietly restarted an unwelcome deadline for dVT Group founders Anton de Vries and Riad Tayeh. By refusing the pair’s application for special leave to appeal against a judgment of the Supreme Court of Victoria’s Court of Appeal in the matter of Timbercorp Finance Pty Ltd, the High…


AFSA stuff up forces trustees to court

BPS Recovery’s Dave Sampson. KPMG’s Max Donnelly. Bungling by the Australian Financial Security Authority (AFSA) has forced two bankruptcy trustees to court in a bid to restore estates to their rightful appointees. Later today the Federal Court will hear an application by KPMG bankruptcy veteran Max Donnelly for declarations that he is the trustee in bankruptcy of the estate of Jason Maurie Nowytarger but not…


Liquidator denounced for seeking fees for defence

Magnetic Insolvency’s Peter Goodin. Menzies Advisory’s Michael Caspaney. Counsel for resurrected builder Modscape Pty Ltd has been at it again, pillorying one of the company’s former external administrators for seeking remuneration and costs for his defence of an application for a fee review commenced by Modscape in the Federal Court last year. “Unbelievable” Modscape’s barrister Ben Murphy said yesterday in describing Michael Caspaney’s claim for…


Duff & Phelps duo cede receiver investigations to SPLs

Duff & Phelps’ Marcus Ayres. Duff & Phelps’ Steve Parbery. As iNO reported last week, Duff & Phelps duo Marcus Ayres and Steve Parbery have had their hands full winding up Queensland coal mine operator ICRA Rolleston Pty Ltd (ICRA). ICRA’s sole director – John Phillip Canavan – suspects the pair of having a conflict with ICRA’ former joint venture partner and his nemesis Rolleston…


Duff & Phelps duo resisting removal

Duff & Phelps’ Marcus Ayres. Duff & Phelps’ Steve Parbery. Like most insolvency practitioners Marcus Ayres and Steve Parbery have plenty of experience with being unwanted. It comes with territory, and while that might prompt speculation about the personality type best suited to a long career in insolvency, for present purposes iNO would like to bring to your attention the administration of ICRA Rolleston Pty…


Forge settlement fodder for ‘Improving Outcomes’ Bill

Banton Group CEO Amanda Banton. KPMG’s Martin Jones. If the Federal Government wanted a recent example of why the litigation funding industry should submit to the regulatory cosh as is envisaged in the Government’s Corporations Amendment (Improving Outcomes for Litigation Funding Participants) Bill 2021 then it might like to look at the latest update for creditors of the Forge Pooled Group (FPG). “The fact that…


Govt-funded liquidator one step closer to removal

Liquidator Moira Carter. Federal Court judge Scott Goodman has rejected arguments seeking to block an amendment to an originating process that calls for the removal of the liquidator of Australian Vocational Learning Institute Pty Ltd (AVLI). As told in LFI Ventures Pty Ltd v Carter, in the matter of Australian Vocational Learning Institute Pty Ltd (in liq) [2021] FCA 1555, the arguments against inclusion of…


“unprincipled” and “pointless” – ASIC fails again

KPMG’s Andrew Smith. KPMG’s Martin Jones. ASIC’s record of litigation against registered liquidators continues to resist improvement, with a judge yesterday labelling the regulator’s bid to induce him to slash the fees of two voluntary administrators (VAs) as “unprincipled” and “wholly pointless”. “It was never viable to differentiate work that was said to be ‘tainted’, from work said not to be. If it is ASIC’s…