Receivership

Liquidators luck out on leniency

Jones Partners’ Alan Topp. Jones Partners’ Bruce Gleeson. We wouldn’t want iNO readers to think this is the Jones Partners edition. It’s just a coincidence. Anyways, Jones Partners’ Alan Topp and Bruce Gleeson have had some luck after mistakenly paying themselves unapproved remuneration with a judge agreeing to retrospectively approve the unauthorised fees. The details in respect of this uncommon demonstration of leniency are contained…


Auxilium’s Cockatoo coup bails out ex-receivers

Auxilium Partners’ Bob Jacobs. There will be jubilation in certain quarters following the sale last week of Pluton Resources’ iron ore operation on Cockatoo Island, located in the aptly named Buccaneer Archipelago off West Australia’s northern coast. Whilst Pluton receiver and Auxilium Partners principal Bob Jacobs can claim credit for succeeding where a procession of his predecessors failed, KordaMentha’s John Bumbak and Janna Robertson (now…


Liquidator of LMIML challenges receiver’s fees

FTI Consulting’s John Park. LMIML receiver David Whyte. If recently retired BDO partner David Whyte ever thought the finalisation of his work as receiver of LM Investment Management Limited (LMIML) would be uneventful, then FTI Consulting’s John Park has well and truly disabused him of that notion. In recent months Park has, as liquidator of LMIML, challenged Whyte’s remuneration claims, with the most recent challenge…


Sargon stand-off heats up as PwC pair resist

PwC’s Daniel Walley. PwC’s Chris Hill. The contest over whose security interest prevails in respect of assets linked to failed fintech Sargon Capital is heating up as receivers for the respective security holders continue to battle it out in the Federal and Supreme Courts. On Monday counsel for Jason Preston and Shaun Fraser were back in the Supreme Court to continue their stoush over access…


Receiver guilty of misconduct but retains role

BPS Reconstruction & Recovery partner Simon Nelson. South-of-the-wall IP Simon Nelson has copped a finding of misconduct from a judge of the Victorian Supreme Court but has retained his position as receiver of Tomi-Sasha Holdings Pty Ltd, the former corporate trustee of the National Property Trust controlled by wealthy Melburnians Eileen and Wayne Crewes. In Re Tomi-Sasha Holdings Pty Ltd (rec and mgr apptd)(adm apptd)…


Sargon receivers embroiled in Federal Court disputes

McGrathNicol’s Shaun Fraser. The receivers of various Sargon Group entities and their appointors are allegedly “embroiled” in two disputes in the Federal Court”, a court heard this week. The claim was made on Monday in the NSW Supreme Court by lawyers for one set of receivers – PwC’s Chris Hill and Dan Walley – in their capacity as receivers of SC Australian Holdings 1 Pty…


Receiver denied bid to use “other people’s money”

Receiver David Whyte. FTI Consulting’s John Park. Who would’ve thought insolvency might be seen to resemble Socialism, at least as it was characterised by the late Baroness Thatcher when alluding to collectivism’s fatal fiscal flaw? Not iNO that’s for sure. But In LM Investment Management Ltd (receiver apptd) (in liq) v Drake & Ors [2020] QSC 265 (28 August 2020) Justice Peter Callaghan of the…


Jirsch partner dumped as creditors invoke new powers

Grant Thornton’s Phil Campbell-Wilson. Grant Thornton’s Matt Byrnes. Jirsch Sutherland partner Malcolm Howell has branded his removal as liquidator of AFX Group Proprietary Limited “a blatant abuse of the new insolvency laws” after he was replaced at a meeting of creditors last Friday by Grant Thornton’s Matt Byrnes and Phil Campbell-Wilson. The meeting had been convened in accordance with ss 90-15(1) and 90-21(2) of the…


Receiver resists inquiry into asset sale to appointor

Worrels Partner Simon Cathro. Hell hath no fury like a debtor who sees their assets sold at what they believe is significant undervalue – just ask Worrells partner Simon Cathro who is seeking to have dismissed an application for an inquiry into his conduct as receiver of International Business Corporation (IBC). IBC’s secured lender FC Securities appointed Cathro receiver of IBC and some related entities…


Judgment increases chance of pursuit of VA, receiver

Hamilton Murphy’s Stephen Dixon. Worrells’ Ivan Glavas. The likelihood that Hamilton Murphy’s Steve Dixon and Worrells’ Ivan Glavas could come in for some unwelcome attention has edged a little closer to reality following the latest decision of Justice Kevin Lyons of the Supreme Court of Victoria in the unfolding saga that is El-Saafin & Anor v Franek & Ors (No 4) [2020] VSC 389. Dixon…