ProvLiqs’ fees “wildly” in excess of $10m estimate

It’s well-established that shareholder stoushes can be effectively resolved by the appointment of external administrators.

The arrival of interlopers – girt with alarming powers and even more alarming hourly rates – frequently unites disputants who’ve previously resisted every compromise proposed at every settlement conference, mediation and impromptu piss up masquerading as a peace summit.

Regrettably for Duncan Clubb and Andrew Sallway, their presence as provisional liquidators of Crown Group Holdings Pty Ltd (CGH) and their subsequent claims for remuneration have incensed at least one of CGH’s two warring directors.

Whether the extent of the claims unifies both in common cause against the BDO pair is yet to be seen.

In the NSW Supreme Court yesterday counsel for the ProvLiqs appeared before Justice Ashley Black to hand up some proposed orders for the timetabling of Clubb and Sallway’s latest application for fee approval.

But beside him was a barrister acting for Paul Sathio, one of the two director shareholders of CGH. And the court heard that Sathio is unwilling to let the application proceed unopposed.

Without disclosing the amount being claimed Justice Black agreed it was sizeable, such that it might involve more than the hour’s scrutiny Club and Sallway’s barrister estimated.

And while Sathio’s counsel had to provide an explanation as to why her client had not complied with an earlier deadline for the putting on of a notice and grounds of objection, estimates were very much on their mind too as the court heard Clubb and Sallway were on track to “wildly” exceed their original forecast of $10 million.

This they said meant the most recent application – Clubb and Sallway’s fourth – could not be looked at in isolation.

It had to be considered in the context of their previous fee claims, hinting that they were concerned about duplication.

Justice Black ordered Ashurst, which is acting for Sathio to serve on Johnson Winter Slattery for the ProvLiqs any grounds of opposition sought to be filed late, and any late affidavit evidence for which leave to file late is sought.

Barring further evidentiary skirmishing – or the joinder of co-CGH director Iwan Sunito – the application has been set down for hearing in June.

Clubb and Sallway meanwhile are understood to be resigned to their roles as punching bags, albeit of the designer variety.