Regulation/Legislation

Notice to produce scuttled by judge

ASIC scuttles liquidator’s production notice

Quitting as a liquidator has yet to earn ArmstrongWily principal Andrew Wily a break. His attempt last month to resign as liquidator from 35 companies drew correspondence from ASIC querying whether the route by which he sought to convene the meetings of creditors might’ve invalidated his retirements and this week the regulator scored a win in the opening exchanges of its fight with the keen…


Liquidators' homes are safe from state enviro laws, but not their fees.

Liquidators: homes safe from enviro-liability

Less than three weeks after a judge of the Queensland Supreme Court elevated the environment’s rights in liquidation above those of liquidators and employees, the lawyer who helped bring about this ominous reordering has assured liquidators their homes are safe, though they might be wise to assume such assurances adhere best to dwellings built of approved mud bricks, earth reverently rammed and only authorised recyclables….


Wily's resignation problematic for replacements.

ASIC intervenes on Wily resignations

SiN cannot imagine it was intentional but ex-liquidator Andrew Hugh Jenner Wily has – in engineering an 11th hour resignation from 35 creditors voluntary liquidations – cast Macquarie Gordon’s Gus Gordon and Michael Hird adrift on the sea of limbo. Between April 3 and April 6 Wily, whose liquidator’s registration expired on April 24, lodged 35 notices under section 499(5) of the Corporations Act, advising creditors…


ASIC's Adrian Brown has let his liquidator's registration lapse.

ASIC’s Brown relinquishes liquidator’s ticket

SiN has already reported on the decision by ASIC’s top liquidator cop Adrian Brown to “scale back” his duties to three days a week but there are questions around that that the selectively communicative Brown needs to clarify. ASIC has been running an advertisement for his replacement on SEEK but what kind of replacement will want a job where his or her predecessor is still around, more…


FEG chief Henry Carr has been meeting with liquidators.

FEG chief open to the “honourable trade on”

The man doing all he can to eliminate complacency around circulating assets and the uses to which they can rightly be put was in Sydney this week, presenting to those most at risk of transgressing his rejuvenated enforcement regime. On Tuesday FEG recovery czar Henry Carr was at the boardroom of John Morgan’s BCR Advisory on Spring Street. It was lunchtime and Carr, who is spearheading the Department of…


FEG’s stretch for trust assets fails

Well this is different. FEG missing out on a slice of pie. It happened after receivers applied for a ruling to determine whether funds generated from a trading trust should be carved up for creditors. In the decision of Amerind Pty Ltd (receivers and managers apptd) (in liq) [2017] VSC 127 (23 March 2017), handed down in the Supreme Court of Victoria last Thursday, the…


Liquidators' levy halved

ASIC halves liquidators’ fixed levy

The recently scaled-back commissar of liquidator oversight has contacted his charges to advise of a scaled back proposal for the impending liquidators’ levy. In an email sent to all registered liquidators yesterday afternoon, ASIC senior executive leader Adrian Brown said that the annual fee they are to pay ASIC to regulate them will be $2500 instead of $5000 under a revised industry funding model. “Following the…


Corpoate Guardian trawling for buisness

Corporate Guardian differentiating itself from trawlers

With work scarce for many firms all avenues are being explored and major mid-tiers like Jirsch Sutherland are apparently not above scouring the lists of winding up applications for opportunities. What’s interesting is the language employed in communications to the recipients of the dreaded wind-up notice. See an excerpt from the letter below. A letter came across SiN’s desk this week from Jirsch subsidiary, Corporate Guardian addressed to…


FEG fee offensive

Liquidators react to FEG fee offensive

The insolvency grapevine – always well fertilised – is blossoming as the Department of Employment’s FEG Recovery Unit progresses its offensive against liquidators whom it regards as having inappropriately levied general liquidation expenses against circulating asset realisations. ARITA chief John Winter yesterday confirmed that many of the organisation’s members had voiced concerns about the FEG fee offensive and the approach taken by FEG recovery czar and chief…


Bruck litigation commences.

Bruck Writs served – challenge under Section 596AB

It’s been a while coming but lawyers for the liquidators of Bruck Textile Technologies (BTT) (In Liquidation) have served the company’s two most senior officers and its owner and chairman with a multi-million dollar compensation claim in which they allege the defendants breached their directors duties, engineered uncommercial transactions and contravened the Corporations Act’s section 265D as it applies to capital reductions. BTT’s chairman and owner,…