Andrew Blundell and Simon Cathro were appointed as official liquidators of the Company via an application to the NSW Supreme Court in relation to a $200,000 loan that remained outstanding at the time of the appointment.
At the time of the appointment, the Company was purported to have previously held property on behalf of two different trusts, where it had been replaced as trustee at a point prior to our appointment. At the time of our appointment, numerous motor vehicles, trailers and real estate property were owned in the name of the Company.- There were two different asset classes held in the two separate trusts:
- 4 properties with a combined value of $21m, with various security interests to financiers;
- Plant and equipment assets, including trucks, trailers and haulage equipment in an equipment trust with a combined value of $1m.
- Complicating factors including numerous sets of proceedings in both the federal and supreme courts in relation to claims bought by the liquidators of a number of failed companies. These claims were in relation to potential preferential payments that the Company had purportedly been the beneficiary of from a number of entities that had been placed into liquidation.
How did we assist
- Secured the assets held in the name of the Company
- Obtained the books and records of the trusts, sought legal advice on the timing of the replacement of the Company as trustee of the property and equipment trusts.
- Investigated the asset position of the trusts and the right of indemnity over those assets for any amounts incurred whilst the Company was the trustee of both trusts.
- Investigated the circumstances surrounding the contingent liability claims and communicated with the relevant stakeholders.
- On the basis of the investigations and their outcomes, we made an application to be appointed as receiver by the court over both trusts assets on the basis of the right of indemnity.
Outcome
After commencing proceedings to be appointed as receiver, we were able to negotiate a settlement which allowed for a return of 100c in the dollar on all admitted claims and 1st ranking mortgages being granted over the property in the property trust on a contingency basis.
For a confidential discussion please contact:
Andrew Blundell, Principal, Cathro & Partners
Ph – +61 2 9189 1723
Email – andrew.blundell@cathropartners.com.au
