July 2016

Struck-off liquidator appeals registration

It’s no surprise that terms such as: “beggared belief” appear amongst the findings of the executioner of auditors and liquidators, which has published its reasons for cancelling the registration of Randall Clinton Joubert more than two months after imposing sentence. A sole practitioner based in Elizabeth Street, Sydney, Joubert was hauled before the Companies Auditors and Liquidators Disciplinary Board (CALDB) in July 2015. The hearing…


Bankruptcy regulator tells trustees it shares their concerns

AFSA intervenes over email offer

Well it sounded like the gig of a lifetime, albeit one for a bankruptcy trustee at the end of their career but that may no longer matter. The regulator has intervened. It began last week when Australia’s registered trustees in bankruptcy received an unsolicited email from Pieter de Bruyn of Personnel Concept Group (see: Unusual Offer For Retiree Trustee). The recruiter invited expressions of interest on…


Unfair preference claims are becoming a minefield for liquidators

Unfair preference claims riskier

Kemp Strang’s Peter Harrison has delivered a compelling summary of the risks attending to claims for unfair preference payments in the context of the May 13 judgment of Federal Court Judge Jim Edelman In the matter of FPJ Group Pty Ltd in Liquidation. The humbling affair involved Hall Chadwick’s David Ross – as liquidator of FPJ Group Pty Ltd  – going after FPJ’s supplier, CSR Building Products. Ross…


Trustee barred from using conflicted lawyer

It’s not often that a judge tells a bankruptcy trustee to hire a different lawyer. However in the case of Leroy versus Mogilevsky, Hall Chadwick partner Paul Leroy has suffered just such a fate. Last week Federal Circuit Judge Michael Jarrett ordered that Leroy be restrained from retaining Gold Coast lawyer Jeremy Worcester of Worcester & Co as his legal representation in the matter. The…


Campbell drawn back to Deloitte days

Reconstruction guru Chris Campbell is being forced to revisit his past as a partner at Deloitte thanks to the bullish determination of creditor denied Garry Hopper (pictured), who on Monday returned for another crack via the Supreme Court of Appeal. The ex-MF Global Australia (MFGA) trader has been waging a legal battle against Campbell and his former Deloitte colleagues David Lombe and Vaughan Strawbridge since October…


Mental illness and bankruptcy: are they such uncommon bedfellows?

Bankrupt’s mental illness excuse dismissed

As Australia’s population ages and the costs of modernity multiply, insolvency practitioners will find themselves dealing more frequently with clients unfit to exercise their responsibilities and obligations. This story is not about them. This story is about a bankrupt whose attempts to be exempted from a public examination on the grounds that it would exacerbate her mental illness have come to naught in the Federal…


A recruitment firm is seeking a bankruptcy trustee and offering a full time salary for a part time role

Unusual offer for retiree trustee

SiN doesn’t normally do job ads but what came across the desk in the last few days was different. A well known recruiter circulated an email earlier this week. The offering is somewhat curious. The Australian Financial Security Authority (AFSA) might care to take note. If you are a trustee in bankruptcy in the twilight of your career you might be interested. Here is the…


liquidator fails to measure up

Judge clouts Dinoris over duties

The Federal Court has ruled that Vincents partner Peter Dinoris failed in his duties by not contacting the director who appointed him voluntary liquidator of her company, despite the director transferring $236,500 from the company’s bank account just days prior to his appointment. In a judgment handed down last week, Federal Court Judge John Reeves found that “Mr Dinoris contravened s 180(1) of the Corporations Act by failing…


A judge has again expressed concerns about liquidator's fees for a straightforward winding up

100 cents in the dollar but judge questions fees

Some might have missed the remarks of Federal Court Justice Michael Wigney recently, which seemed to convey less than complete satisfaction with Richard Stone’s remuneration after the RSM partner made application for special leave to distribute a surplus generated from the winding up of Goldana Investments. Specifically, the judge seemed concerned about the level of fees when set against the seemingly straightforward nature of the job….


Justice and the law may have to adjudicate on a $500 miliion proof of debt

Octaviar: $500 million proof of debt persists

“We’re talking”. That’s almost all the special purpose liquidator of Octaviar Limited (OL) would say yesterday when SiN phoned to enquire about that mammoth and as yet unresolved proof of debt (PoD) action RSM’s David Kerr holds against OL’s sister company Octaviar Administration (OA). OA is currently in the hands of general purpose liquidators Kate Barnett and Bill Fletcher from Bentleys Corporate Recovery. “We are working at resolving…