David Johnstone.
The imbroglio that is New Wilkie Energy (NWE) keeps on giving.
So far we’ve seen the original administrators from BRI Ferrier replaced then sued by trade suppliers, BDO Corporate commence action to wind up a related entity not in VA and now it appears that the appointing director was potentially a man of straw who agreed to be installed as sole director in exchange for $60,000.
This latest revelation was contained in the August 1, 2024 Report to NWE creditors from David Johnstone, David Osborne and Richard Tucker, the KordaMentha partners who replaced the BRI foursome of Peter Krejci, Andrew Cummins, Jonathon Keenan and Stefan Dopking at the first meeting on January 9, 2024.
The S439 Report goes into considerable detail about what the administrators’ investigations have so far uncovered but where those findings go depends on whether the group is wound up and liquidators appointed.
One thing from their report however is clear and that is that Johnstone, Osborne and Tucker have already discovered enough to justify referring the director to the regulator.
“Seven days before the Former Administrators were appointed, Mr Andrew Lowry (whose real name is Andrew Lowy) was made the sole director of all seven entities in the Group,” the incumbent VAs told creditors.
“Discussions with Mr Lowy revealed that he agreed to this role in exchange for $60,000 at the request of his nephew, Mr Simon Raftery.
“Mr Andrew Lowy was appointed director on 20 December 2023 and on 27 December 2023, passed the resolution to appoint the Former Administrators to all entities.
“When asked by the Administrators about the steps he took to understand the financial forecast and viability of the Group before appointing Administrators, Mr Andrew Lowy confirmed that he was simply acting under the direction of Mr Simon Raftery.
“Investigations into this statement by Mr Andrew Lowy will continue should the Group be placed into liquidation.
“Mr Andrew Lowy informed us that he has taken on similar roles at the request of Mr Simon Raftery for several other entities that entered external administration shortly after his appointment. Consequently, we have reported this information to ASIC,” the incumbents said.
In interviews with the VAs Lowy explained that after being appointed to seven entities in the group on December 20 he requested an updated forecast and funding report for January but received nothing.
“As a result of my concerns, the management team referred me to BRI Ferrier who I appointed as Administrators to limit my personal liability,” he said.
“My role as a director was limited and as far as I am concerned no debts were incurred during my appointment period.
“Further this is supported by the management plans provided to me including the report from Chris Coombes on 16 December 2023 about Christmas planning and staff engagement throughout this period and into January 2024.
“Other than the above, I have minimal further comments to make due to my limited role as a director. I was approached by Simon Raftery, who I was aware was an advisor to relevant parties within the Group, to act as a director where I understand the existing director wished to resign. I am not aware of the reasons for their decision to resign.”
Raftery finding $60,000 for his uncle certainly won’t impress his ex-mates from BRI, who were relying on assurances from Raftery that he would fund them up to $4 million to keep NWE’s Wilkie Creek coal mine operating while they found a buyer.
No funds however were ever provided – maybe uncle Andy got all there was to get – and the boys from BRI must now wait possibly until October before learning if creditors will approve the approximately $370,000 in fees they generated between their appointment on December 27, 2023 and the first meeting where they were removed on January 9, 2024.
The delay is a result of the incumbents adjourning last week’s second meeting for up to 45 days at the request of receivers Chris Hill and Ben Campbell from FTI Consulting who are in the midst of asset sales that would have been imperilled if the NWE group went into liquidation.
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