Kathleen Vouris.
Richard Albarran.
If you think Australian Prime Ministers have a tough time dealing with the Solomon Islands Government (SIG) spare a thought for Kathleen Vouris and Richard Albarran.
For almost a year the Hall Chadwick pair have been dangling at the whim of the SIG as that august body contemplates funding a deed of company arrangement (DoCA) for two related and Australian-incorporated entities to which Vouris and Albarran are administrators appointed.
The delay in respect of the funding has meant Vouris and Albarran’s lawyers have made multiple trips to court seeking extensions.
The first extensions applied to the convening period for the second meeting of creditors.
But after a deadlock on the resolution to execute the DoCA was broken by Vouris as chair of the reconvened second meeting in June this year the VAs were faced with the problem that the deed proponent had not actually come up with the money.
Given Vouris and Albarran had recommended that creditors endorse the DoCa and that Vouris had used her casting vote as meeting chair to break a DoCA resolution deadlock, the absence of funding meant their lawyers once again had to traipse down to the courts, this time seeking an extension of the time required to execute the DoCA.
This week Federal Court judge Brigitte Markovic was told by the administrator’s barrister Andrew Fernon SC that the High Court of the Solomon Islands had delivered a judgment that would allow for the issuance by the SIG of a formal offer to the administrators of funding for the deed fund, though even that offer would be subject to the SIG receiving “cabinet approval”.
In light of such assurances Justice Markovic agreed to a short extension in respect of the upcoming hearing of the administrators’ extension application, which is being opposed by a secured creditor determined to ensure that under the DoCA terms he has priority to any payments out of the deed fund ahead of the administrators, who’ve racked up in excess of $1.3 million in fees and expenses investigating various aspects of this curious affair whilst also keeping the DoCA proposal afloat as the SIG’s deliberated.
Her honour set down the hearing of the DoCA execution extension application for half a day on September 1, though that date was based on Fernon’s assurances that the SIG would be making a formal offer by 10:00am today.
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