Liquidators

Indemnity costs awarded against retentive liquidator

Pitt Street liquidator Jamieson Louttit has avoided the full wrath of an adverse order – kind of – after a judge ruled that indemnity costs should not be applied to two days spent hearing an application launched in April against Louttit by the king of encaffeination, Les Schirato. In a judgment handed down last week NSW Supreme Court judge Ashley Black signalled that Schirato – in his capacity as director…


Proportionality spectre looms as BBY fees mount

It didn’t require a psychic to foretell that BBY’s diverse bunch of creditors might at some point tire of the court-imposed regime for assessing the liquidators’ mounting fees and look to summon forth their own mechanism of restraint. A sign of that came on Monday in the NSW Supreme Court when legal representatives for the liquidators and BBY’s various classes of former clients and creditors –…


Synagogue members to fund liquidators appeal on rabbi

Synagogue members to fund liquidators’ Rabbi appeal

Anthony Elkerton and Ron Dean-Willcocks have had to source litigation funding from members of the troubled South Head & District Synagogue (Sydney) as they grapple with the prickly issue of how to deal with the Synagogue’s Rabbi, whose employment they failed to terminate after being appointed administrators on April 26, 2017. In Elkerton, in the matter of South Head & District Synagogue (Sydney) (In Liq) [2017] FCA 1206 Justice…


Mother to fund examination of PwC partners

He might be facing untested allegations that could see him lose his liquidator’s registration but a judge has ruled that David Hurst can accept an appointment that will likely lead to PwC’s David Merryweather and Greg Hall appearing in the witness box for public examination. In James, in the matter of Liquor National Pty Ltd (in liq) v Liquor National Pty Ltd (in liq) (No 2) [2017] FCA 1154 (29…


Coffee baron grinds liquidator for indemnity costs

In the past six months liquidator Jamieson Louttit has been involved in an untidy scrap with coffee bean counter extraordinaire Les Schirato. That dispute is set to come to a head this morning when Louttit’s lawyers attempt to prevent an order being made against their client for indemnity costs. Based on the comments of Justice Ashley Black In the matter of S.C.W. Pty Ltd [2017] NSWSC…


Lit funder’s conduct allegedly unconscionable: Octaviar

If you thought that the liquidation of the Octaviar group is cursed given the the welter of dispute and litigation that has dogged this administration since the original liquidators were replaced back in 2009, then you are of course forgiven. Nor would you be admonished if you expressed no surprise whatsoever on learning that the incumbent liquidators are currently locked deep in a dispute with…


Liquidators can act as surgeon and undertaker: Judge

Whilst it might seem difficult to envisage how the appearance of independence can be maintained by insolvency practitioners acting as both surgeon and undertaker, Justice Paul McKerracher illuminates the way to envisagement. In Australian Securities and Investments Commission v Diploma Group Limited (No 5) [2017] FCA 1147  his honour last week granted leave to David Hodgson and Andrew Hewitt to enable the Grant Thornton partners to appoint themselves as administrators of…


Tax scam highlights risk in insolvency’s referral ritual

A report about two elderly Australians losing their house after spending more than $100,000 on advice from a company accused of operating a multi-million dollar tax evasion scheme highlights the risks inherent in the practice of referral. Queensland fruit and vegetable peddlers Tony and Doris Di Blasio operated the Crisp on Creek fruit and veg business in Mount Gravatt in Queensland but ran into trouble meeting…


QN liquidator insulated from incendiary affidavit

Liquidator shrugs off tycoon’s affidavit tirade

It’s not every insolvency practitioner who’s accused of connivance in a conspiracy so grand that the federal executive lies at its heart but for John Park, it’s not just fake news, it’s not even new. Where do I start,?” Park said yesterday when SiN rang to discuss the latest incendiary affidavit authored by former member of parliament and owner of the Yabulu Nickel Refinery, Clive Palmer. “Every…


Octaviar liquidators still at odds despite KPMG deal

It seems the settlement that Octaviar’s liquidators extracted from KPMG in 2016 – with the help of a litigation funder – hasn’t quelled this tortured liquidation’s capacity to infect parties involved with discontent, rancour and litigious intent whilst simultaneously delivering millions in fees to the appointees and their advisers. KPMG settled a class action with unit holders in Octaviar’s Premium Income Fund (PIM) in 2015 and the…