May 2017

Detail to bedevil insolvency practitioners in the wake of Sakr Nominees pay claim.

SAKR: Demand for detail to bedevil future fee claims

The process may have been akin to pulling teeth with an auditor present but liquidator Cliff Sanderson has at last obtained court approval for his final fees in the painful winding up of Sakr Nominees. NSW Supreme Court Justice Ashley Black on Monday ruled in favour of Sanderson’s claim for an additional $63,577.80c in fees including GST for the period from November 3 2014 to November…


Tightrope: “European way” unravels on eve of hearing

After four years of near Spartan resistance, Stephen Hathway has unexpectedly extracted a settlement from the family behind the failed, cheap-as-chips girls wear outfit, Tightrope  group. On Monday, orders were made by consent between Hathway as liquidator of Tightrope Retail and Tightrope Wholesale and Robyn Tripolitis, wife of bankrupt company founder John Tripolitis. Those consent orders came on the eve of the scheduled commencement of a…


Banned liquidaotr guilty on one FEG fraud charge

Banned liquidator not guilty of attempted FEG fraud

In the same month that the Federal Government released a consultation paper seeking input on ways to reduce FEG fraud, a jury in the Victorian County Court has found a suspended liquidator not guilty on 15 charges of attempting to con payments out of the scheme using false employee records. The trial of Victorian Andrew Leonard Dunner, who in 2013 had his liquidator’s registration suspended…


Domenic Martino injuncted from acting as QNI controller pending hearing

QNI judge dispenses with Martino “interference”

The four FTI Consulting partners managing the liquidation of Queensland Nickel have had a tidy win in the Supreme Court of Queensland after applying to extend an interlocutory application preventing Domenic Martino and China First Pty Ltd from interfering in the various proceedings the liquidators have on foot against interests associated with QNI’s ultimate owner, Clive Palmer. The FTI four are suing Palmer’s Mineralogy for…


Straw director declares bankriuptcy

Jirsch trustee picks up Plutus “straw director”

In the wake of last week’s arrest of 10 people allegedly involved in the $165 million Plutus Payroll pay-as-you-go (PAYG) scam, at least one of those who may have unwittingly assisted the accused has sought the protection of personal insolvency. Alexander Nappa, 22, of Beverly Hills is alleged by police to be a straw director of PP Aus Holdings. The company was identified as being…


FEG funding appeals in two state courts.

FEG backs appeals on Linc and Amerind

The recently asserted primacy of State laws over the insolvency statutes is to be tested in two appeals backed by the bullish litigators running the Department of Employment’s FEG recovery Unit. In the case of failed coal-to-liquids aspirant Linc Energy, liquidators Stephen Longley, Grant Sparks and Martin Ford two weeks ago filed notice of their intent to appeal the judgment of Queensland Supreme Court Justice David J…


Fraud bust likely to flush out more accused.

Insolvency referrer charged in ATO fraud bust

There’s going to be some boot quaking in insolvency town following yesterday’s spectacular ATO fraud bust. One of those those hauled before court as an alleged party to the grand conspiracy is none other than Jason ‘Jay’ Onley, the one-time Winter Olympian who cut his insolvency teeth at Fox Syme’s 180 Corporate before heading out to make his way as an advisor and referrer. Onley’s…


Banksia fee approval

Banksia Securities: fee claim masterclass

There cannot be too many prominent rulings on insolvency practitioner remuneration that are not invoked at some point In the matter of Banksia Securities Ltd (in liq) (receivers and managers appointed) [2017] NSWSC 540. In approving claims for pay lodged by Banksia’s special purpose receivers (SPRs) – who are also its liquidators – NSW Supreme Court judge Fabian Gleeson has gone a good way to emptying…


No pluses for Minus in chambers sale challenge.

No pluses for Minus in chambers sale challenge

Derek Minus may well be a dispute resolution specialist of the highest order but that does not seem to have helped him resolve his dispute with BPS Recovery’s David Sampson. The pair have been at loggerheads over the sale of Minus’s barrister’s chambers in Castlereagh Street since Sampson was given authority to sell the property in his capacity as court-appointed receiver late last year. In…


bankruptcy notice served and sent back

Judge tosses out bankruptcy notice served on trustee

The latest judgment trundled out of the courts in response to the lengthy trench warfare between bankruptcy trustee Max Prentice and Coshott family company Fewin Pty Ltd has found that a bankruptcy notice served on the BPS Recovery partner was an abuse of process. In handing down his judgment last week Justice Robert Bromwich of the Federal Court found that Fewin served the notice – relating…