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Grant Thornton Australia Limited Level 17 383 Kent Street Sydney NSW 2000 T +61 2 8297 2400
ABN-41 127 556 389 ACN-127 556 389
Grant Thornton Australia Ltd ABN 41 127 556 389 ACN 127 556 389 ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Legislation.
www.grantthornton.com.au
To the creditor as addressed
13 June 2019
Initial Information for creditors
Omnia Lifestyle Group Pty Ltd (In Liquidation)
ACN 602 416 937 (the “Company”)
Omnia Lifestyle Group Pty Ltd may owe you money. This means you may be a creditor of Omnia Lifestyle
Group Pty Ltd.
The purpose of this document is to provide you with information about the liquidation of Omnia Lifestyle
Group Pty Ltd and your rights as a creditor.
Notification of appointment
We were appointed Joint and Several Liquidators of the Company by a resolution of the Company’s
members on 30 May 2019.
We act for all creditors. We are responsible for locating the Company’s assets, investigating the
Company’s affairs, reporting to ASIC and, if funds become available, paying money owed to creditors.
What do you need to know?
Question Answer
What is a creditors’ voluntary liquidation?
A creditors’ voluntary liquidation, or CVL, is a liquidation initiated by the Company where it cannot pay all of its creditors in full. This means that the Company is insolvent.
What are your rights as a creditor?
Information regarding your rights as a creditor is provided in the information sheet included at Appendix A. This includes
your right to:
Make reasonable requests for a meeting
Make reasonable requests for information
Give directions to me
Appoint a reviewing liquidator
To replace me as liquidator.
We wish to draw to your attention the special right to request a meeting in the first 20 business days of a creditor’s voluntary liquidation. If we receive a request for a meeting from at least 5% of known creditors that are not a related entity of Omnia Lifestyle Group Pty Ltd, we are required to
© 2019 Grant Thornton Australia Limited. 2
hold a meeting, as long as the request is reasonable. The details of whether a request is reasonable or not is included in the information sheet at Appendix A.
What happens to your debt? All creditors of the Company are now creditors in the liquidation. As a creditor, you have certain rights, although your debt will now be dealt with in the liquidation.
The amount of money you receive depends on the amount we recover, including from finding and selling the Company’s assets. After paying my fees, creditors share the remaining money. This amount is called a dividend.
A dividend can vary between creditors because the law entitles different types of creditors to be paid before other types of creditors.
If you have leased the Company property, have a retention of title claim or hold a Personal Property Security in relation to the Company, please contact our staff as soon as possible.
If you are former employee of the Company and are owed outstanding entitlements
Entitlements owing to you as at the date of our appointment are a claim against the Company. Under the Fair Entitlements Guarantee (FEG) Scheme, which provides a safety net arrangement for eligible employees, an employee may be entitled to receive a portion of their claim if the Company enters into liquidation.
Please note the eligibility of each claim is determined by the Department of Jobs and Small Business. Please refer to the FEG website at https://www.jobs.gov.au for more information.
In accordance with Section 556 of the Corporations Act 2001, any unpaid wages, superannuation, leave and other such entitlements arising out of your employment with the Group will ordinarily rank as a priority claim against certain assets of the Group. At this stage, we are unable to confirm whether there will be sufficient funds available to make a dividend to priority creditors.
If you are in possession of any company owned asset(s) please contact Emily Cramp on 02 8297 2679 to arrange collection.
Do you have to do anything? You should read this information.
You can choose to participate in the liquidation process, but you don’t have to.
If we need you to take action, we will write and ask you. For example, we may ask you to provide proof of your debt before we can pay you a dividend.
If you do not think you are a creditor, please let us know.
Summary of the Company’s affairs
We received a Report on Company Activities and Property (ROCAP) from the directors on 30 May 2019. A summary of the Company’s affairs from the information in the ROCAP is attached at Appendix B.
Listing of creditors We have attached at Appendix C a list of creditors, including
their address and the estimated amounts of their claims that
© 2019 Grant Thornton Australia Limited. 3
are shown in the records of the Company. Any creditors related to the Company are identified. We are required to provide this information to creditors under law.
What is the cost of the liquidation We get paid out of the Company’s money, including realisations from assets or from money paid to us by others, such as the Company’s directors. If there is not enough money in the liquidation, we may not get paid in full.
We may write and ask that you approve our remuneration for the work that we do in completing the liquidation. If we do, we will provide you with detailed information so that you can understand what tasks we have undertaken and the costs of those tasks.
Included at Appendix D is our Initial Remuneration Notice.
This document provides you with information about how we propose to be paid for undertaking the liquidation.
What further communication will you receive?
We will write to you within three months of our appointment advising whether a dividend is likely and update you on the progress of our investigations.
We may also send you updates on the progress of the liquidation or proposals to approve certain matters in the liquidation at any time.
It is unlikely that we will hold a meeting to communicate with creditors unless we believe it is in the interests of creditors. However, if we receive a request for a meeting that complies with the guidelines set out in the creditor rights information sheet, we will hold a meeting of creditors.
What happens next? We will proceed with the liquidation, including:
recovering and selling any available property
investigating the Company’s affairs
reporting to the corporate regulator, the Australian Securities and Investments Commission (ASIC); and
distributing any available funds to creditors in accordance with their priority.
Where can you get more information?
The Australian Restructuring Insolvency and Turnaround Association (ARITA) provides information to assist creditors with understanding liquidations and insolvency. This information is available from ARITA’s website at arita.com.au/creditors.
ASIC also provides information sheets on a range of insolvency topics. These information sheets can be accessed on ASIC’s website at asic.gov.au (search for “insolvency information sheets”).
© 2019 Grant Thornton Australia Limited. 4
At this stage we invite creditors to provide further information on any matters discussed in this circular or
relating to the Company generally where this may assist with the investigation into the affairs of the
Company.
Should you have any queries regarding the above matters please contact Emily Cramp of our office on
02 8297 2679, or by email on [email protected]. There is also information about this liquidation
on my firm’s website: www.grantthornton.com.au.
Yours faithfully
John McInerney
Joint and Several Liquidator
Attachments
Appendix A - Information Sheet - Creditor Rights in Liquidation
Appendix B - Summary of affairs
Appendix C - List of creditors identifying related parties
Appendix D - Initial remuneration notice
Specific queries about the liquidation should be directed to the liquidator’s office.
AUSTRALIAN RESTRUCTURING INSOLVENCY & TURNAROUND ASSOCIATION
Creditor Rights in Liquidations
Requests must be reasonable.
They are not reasonable if:
Both meetings and information:
(a) complying with the request would
prejudice the interests of one or
more creditors or a third party
(b) there is not sufficient available
property to comply with the request
(c) the request is vexatious
Meeting requests only:
(d) a meeting of creditors dealing with
the same matters has been held, or
will be held within 15 business days
Information requests only:
(e) the information requested would be
privileged from production in legal
proceedings
(f) disclosure would found an action
for breach of confidence
(g) the information has already been
provided
(h) the information is required to be
provided under law within 20
business days of the request
If a request is not reasonable due to (b),
(d), (g) or (h) above, the liquidator must
comply with the request if the creditor
meets the cost of complying with the
request.
Otherwise, a liquidator must inform a
creditor if their meeting or information
request is not reasonable and the
reason why.
As a creditor, you have rights to request meetings and information or take certain actions:
Right to request a meeting
Right to request
information
Right to give directions to
liquidator
Right to appoint a reviewing liquidator
Right to replace
liquidator
Right to request a meeting
Right to request information
In liquidations, no meetings of creditors are held automatically.
However, creditors with claims of a certain value can request in
writing that the liquidator hold a meeting of creditors.
A meeting may be requested in the first 20 business days in a
creditors’ voluntary liquidation by ≥ 5% of the value of the debts held
by known creditors who are not a related entity of the company.
Otherwise, meetings can be requested at any other time or in a court
liquidation by:
▪ > 10% but < 25% of the known value of creditors on the condition
that those creditors provide security for the cost of holding the
meeting
▪ ≥ 25% of the known value of creditors
▪ creditors by resolution, or
▪ a Committee of Inspection (this is a smaller group of creditors
elected by, and to represent, all the creditors).
If a request complies with these requirements and is ‘reasonable’,
the liquidator must hold a meeting of creditors as soon as
reasonably practicable.
Liquidators will communicate important information with creditors as
required in a liquidation. In addition to the initial notice, you should
receive, at a minimum, a report within the first three months on the
likelihood of a dividend being paid.
Additionally, creditors have the right to request information at any
time. A liquidator must provide a creditor with the requested
information if their request is ‘reasonable’, the information is relevant
to the liquidation, and the provision of the information would not
cause the liquidator to breach their duties.
A liquidator must provide this information to a creditor within 5
business days of receiving the request, unless a longer period is
agreed. If, due to the nature of the information requested, the
liquidator requires more time to comply with the request, they can
extend the period by notifying the creditor in writing.
AUSTRALIAN RESTRUCTURING INSOLVENCY & TURNAROUND ASSOCIATION PAGE 2
12112 (LIQ) - INFO - CREDITOR RIGHTS INFORMATION SHEET V2_0.DOCX Version: July 2017
Creditors, by resolution, may give a liquidator directions in relation to a liquidation. A liquidator must have
regard to these directions, but is not required to comply with the directions.
If a liquidator chooses not to comply with a direction given by a resolution of the creditors, they must
document their reasons.
An individual creditor cannot provide a direction to a liquidator.
Creditors, by resolution, may appoint a reviewing liquidator to review a liquidator’s remuneration or a cost or
expense incurred in a liquidation. The review is limited to:
▪ remuneration approved within the six months prior to the appointment of the reviewing liquidator, and
▪ expenses incurred in the 12 months prior to the appointment of the reviewing liquidator.
The cost of the reviewing liquidator is paid from the assets of the liquidation, in priority to creditor claims.
An individual creditor can appoint a reviewing liquidator with the liquidator’s consent, however the cost of
this reviewing liquidator must be met personally by the creditor making the appointment.
Creditors, by resolution, have the right to remove a liquidator and appoint another registered liquidator.
For this to happen, there are certain requirements that must be complied with:
Meeting request Information and notice Resolution at meeting
Right to appoint a reviewing liquidator
Right to replace liquidator
Right to give directions to liquidator
A meeting must be reasonably
requested by the required
number of creditors.
Creditors must inform the
existing liquidator of the
purpose of the request for the
meeting.
Creditors must determine who
they wish to act as the new
liquidator (this person must be a
registered liquidator) and obtain:
▪ Consent to Act, and
▪ Declaration of
Independence, Relevant
Relationships and
Indemnities (DIRRI).
The existing liquidator will send
a notice of the meeting to all
creditors with this information.
If creditors pass a resolution
to remove a liquidator, that
person ceases to be
liquidator once creditors pass
a resolution to appoint
another registered liquidator.
For more information, go to www.arita.com.au/creditors.
Specific queries about the liquidation should be directed to the liquidator’s office.
1
Australian Securities & Investments Commission
Presentation of summary of affairs of a company
Form 509 Corporations Act 2001
497(1)(a)(i)
If there is insuffi cient space in any section of the form, you may photocopy the relevant page(s) and submit as part of this lodgement
Related forms: 5604 Information about the company’s affairs sent to creditors
Company details
Company name
OMNIA LIFESTYLE GROUP PTY LTD (IN LIQUIDATION)
ACN / ABN
602 416 937
Lodgement details
An image of this form will be available as
part of the pulci register
Who should ASIC contact if there is a query about this form?
ASIC registered agent number (if applicable)
1511
Firm/Organisation
Grant Thornton Australia Limited
Contact name/position description Telephone Number
John McInerney 02 8297 2400
Email address (optional)
Postal Address or DX Address
Locked Bag Q800, QVB Post Office, Sydney NSW 1230
Suburb/City State / Territory Post Code
Sydney NSW 1230
Summary of assets and liabilities
Date to which summary is made up
Date
30 / 05 / 2019
2
Continued … Summary of assets and liabilities
Valuation
(for each entry show whether
cost or net book amount)
$
Estimated
Realisable
Values
$ 1 Assets not specifically subject to security interest
(a) interest in land
(b) sundry debtors
(c) cash on hand
(d) cash at bank
(e) stock
(f) work in progress
(g) plant and equipment
(h) other assets 782,443.72 0.00
Sub total
782,443.72 0.00
2.
Assets subject to specific security interests Less amounts owing
Total assets $0.00
Total Estimated Realisable Values $0.00
3.
Less payable in advance of secured creditor(s) including employee entitlements
($35,620.55)
4.
Less amounts owing and secured by debenture or circular security interest over assets
$0.00
5.
Less preferential claims ranking behind secured creditors
$0.00
6.
Less balances owing to partly secured creditors
$0.00
Total Claims
($35,620.55)
Security Held
$0.00
7.
Less creditors (unsecured) Amount claimed
($1,269,650.23)
8.
Add contingent assets Estimated to produce
$0.00
9.
Less Contingent liabilities
Estimated to rank
$0.00
Estimated Surplus (Deficiency)
($1,305,270.78)
Subject to costs of the Creditors Voluntary Liquidation Share capital $10,000.00
Issued $10,000.00 Paid Up $10,000.00
3
Signature
This form must be signed by a
director, secretary or liquidator. Name of person signing
John McInerney
Capactiy
Joint and Several Liquidator
Signature
Date
13 / 06 / 2019
Lodgement If lodging with ASIC, send completed and signed forms to:
Australian Securities and Investments Commission
PO Box 4000, Gippsland Mail Centre VIC 3841.
For help or more information Web www.asic.gov.au Need help? www.asic.gov.au/question
Telephone 1300 300 630
Creditor Listing (Landscape)Omnia Lifestyle Group Pty Ltd (In Liquidation)All CreditorsPRIORITY CREDITORS (EMPLOYEES AND SGC)Creditor Name Address ROCAP Advised ClaimedTrans IDBrown, Rachael Withheld 17,055.55 17,055.55 0.00Hawkins, Veronica Withheld 15,946.03 15,946.03 0.00Melis, Matia Withheld 2,618.97 2,618.97 0.00
Totals for Priority Creditors (Employees and SGC) 35,620.55 35,620.55 0.00UNSECURED CREDITORSCreditor Name Address ROCAP Advised ClaimedTrans IDAustralian Taxation Office GPO Box 9990 PERTH WA 6848 0.00 0.00 80,431.76Battiston, Luciano 14 Maria Court Palmwoods QLD 4555 50,000.00 50,000.00 0.00Crack, David & Ruby 11 Deep Creek Road Wynyard TAS 7325 25,000.00 25,000.00 0.00Edwards, Graeme & Sharyn Lot 80, 169 Bastin Road Howard Springs NT 835 225,000.00 225,000.00 0.00Fraser, Matthew & Monique 27 Gable Street Koongal QLD 4701 50,000.00 50,000.00 0.00Grech, Sammy & Tammy 50 Fleetwood Circuit Melton West VIC 3337 100,000.00 100,000.00 0.00Hardiman, Annette & Ian 4 Duruga Court Botanic Ridge VIC 3977 100,000.00 100,000.00 0.00Henwood/Staynoff, Jennifer & Cyril PO BOX 38130 NT 0821 80,000.00 80,000.00 0.00Ignite Alliance 302/21 Barangaroo Avenue Barangaroo NSW 2000 64,822.45 64,822.45 0.00Lyon, Don 42 Berrigan Road Miandetta TAS 7310 50,000.00 50,000.00 0.00Magor, Tanya & Mark 16 Eucalyptus Avenue Annandale QLD 4814 30,000.00 30,000.00 0.00Nationwide Marketing TBC 0.00 0.00 0.00Newman, Gavin & Mandy 26 Parkland Drive Warnbro WA 6169 30,000.00 30,000.00 0.00Northover, Craig & Heather 36 Sondra Lena Drive Glenlee QLD 4701 40,000.00 40,000.00 0.00NRG Mortgage Management TBC 2,321.00 2,321.00 0.00Omnia Finance Pty Limited TBC 2,152.00 2,152.00 0.00Omnia Property Pty Limited TBC 37,117.25 37,117.25 0.00Pratt, Vincent & Loren 2 Beagrie Street Sarina QLD 4737 60,000.00 60,000.00 0.00Ramsamy, Edward 27 Frank Cowley Drive Glenella QLD 4740 35,000.00 35,000.00 0.00Seek GPO Box 2335 Sydney NSW 2001 379.50 379.50 0.00Shanks, Paul 36 Honeyeater Circuit Kawana QLD 4814 40,000.00 40,000.00 0.00Telstra Corporation Limited GPO Box 9901 Melbourne VIC 3001 609.26 609.26 0.00Thompson, Ryan & Rochelle 4 Stockton Way Dalyellup WA 6230 60,000.00 60,000.00 0.00Tones, Glen 37 Goodson Road Bouldercombe QLD 4702 75,000.00 75,000.00 0.00Vodafone Pty Ltd GPO Box 2699 SYDNEY NSW 1158 1,608.54 1,608.54 0.00Walters, Glenn & Karen 1007 Ridgley Highway Ridgley TAS 7321 30,000.00 30,000.00 0.00Workcover NSW Locked Bag 2906 Lisarow NSW 2252 208.47 208.47 0.00
Totals for Unsecured Creditors 1,189,218.47 1,189,218.47 80,431.76Totals for All Creditors: 1,224,839.02 1,224,839.02 80,431.76
Initial Remuneration Notice
Omnia Lifestyle Group Pty Ltd (In Liquidation)
ACN 602 416 937
The purpose of the Initial Remuneration Notice is to provide you with information about how we propose our
remuneration for undertaking the Creditors Voluntary Liquidation will be set.
Remuneration Methods
There are four basic methods that can be used to calculate the remuneration charged by an insolvency
practitioner. They are:
A Time based / hourly rates: This is the most common method. The total fee charged is based on the
hourly rate charged for each person who carried out the work multiplied by the number of hours spent by
each person on each of the tasks performed.
B Fixed Fee: The total fee charged is normally quoted at the commencement of the administration and is
the total cost for the administration. Sometimes a practitioner will finalise an administration for a fixed
fee.
C Percentage: The total fee charged is based on a percentage of a particular variable, such as the gross
proceeds of assets realisations.
D Contingency: The practitioner’s fee is structured to be contingent on a particular outcome being
achieved.
Method chosen
Given the nature of this administration we propose that our remuneration be calculated on time based / hourly
rate. This is because:
• It ensures that creditors are only charged for work that is performed.
• The Practitioner is required to perform a number of tasks which do not relate to the realisation of
assets, for example responding to creditor enquiries, reporting to ASIC, distributing funds in
accordance with the provisions of the Corporations Act or the Bankruptcy Act.
• The practitioner is unable to estimate with certainty the total amount of fees necessary to complete
all tasks required in the Administration.
• The practitioner has a time recording system that can produce a detailed analysis of time spent on
each type of task by each individual staff member utilised in the administration;
• Time based remuneration calculates fees upon a basis of time spent at the level appropriate to the
work performed; and
• The method provides full accountability in the method of calculation.
Explanation of Hourly Rates
The rates for our remuneration calculation is set out in the following table together with a general guide showing
the qualifications and experience of staff engaged in the administration and the role they take in the
administration. The hourly rates charged encompass the total cost of providing professional services and should
not be compared to an hourly wage.
Title Description Hourly Rate (excl GST)
Appointee Registered Liquidator / Trustee. Partner bringing specialist skills to Administrators and Insolvency matters. Controlling all matters relating to the assignment.
$675
Director Qualified accountant (CA/CPA) and may be a registered Liquidator/Trustee. Minimum 7/8+ years’ experience. Highly advanced technical and commercial skills. Planning and control of all Administration and Insolvency tasks. Controlling substantial matters relating to the assignment and reporting to the appointee.
$595
Senior Manager Qualified accountant (CA/CPA) and may be a registered Liquidator/Trustee. Minimum 7/8+ years’ experience. Likely to be appointed as a director in due course. Highly advanced technical and commercial skills. Planning and control of all Administration and Insolvency tasks. Controlling substantial matters relating to the assignment and reporting to the appointee.
$575
Manager Typically CA/CPA Qualified. 5-8 years’ experience. Well developed technical and commercial skills. Planning and control of Administration and Insolvency tasks with the assistance of the appointee.
$530
Senior Associate Typically CA/CPA Qualified. 4+ years’ experience. Co-ordinates planning and control of small to medium Administrations and Insolvency tasks. Conducts certain aspects of larger Administrations.
$415 - $470
Associate Typically undertaking CA/CPA Qualifications. Up to 3 years’ experience. Required to conduct the fieldwork on smaller Administrations and Insolvency tasks and assist with fieldwork on medium to large Administrations and Insolvency tasks.
$275 - $350
Paraprofessional Carries out all secretarial functions relating to an Administration. $270
Undergraduate Registered Liquidator / Trustee. Partner bringing specialist skills to Administrators and Insolvency matters. Controlling all matters relating to the assignment.
$220
EA/PA Qualified accountant (CA/CPA) and may be a registered Liquidator/Trustee. Minimum 7/8+ years’ experience. Highly advanced technical and commercial skills. Planning and control of all Administration and Insolvency tasks. Controlling substantial matters relating to the assignment and reporting to the appointee.
$185
Administrator Qualified accountant (CA/CPA) and may be a registered Liquidator/Trustee. Minimum 7/8+ years’ experience. Likely to be appointed as a director in due course. Highly advanced technical and commercial skills. Planning and control of all Administration and Insolvency tasks. Controlling substantial matters relating to the assignment and reporting to the appointee.
$290
Estimated remuneration
We estimate that this administration will cost approximately $25,000.00 (excluding GST) to complete, subject to
the following variables which may have a significant effect on this estimate and that we are unable to determine
at this early stage in the administration:
• Quality and completeness of Company books and records;
• Compliance of officers of the Company including external accountant;
• Duration of the liquidation may last longer than six months;
• Complexity of investigations;
• Complications in recovery of assets; or
• Potential legal proceedings against preferential creditors.
Prior to our appointment, we provided an estimate of the cost of the administration to the directors. This estimate
is consistent with the estimate provided to the directors prior to our appointment.
We received an up-front payment of $15,000 (plus GST) to contribute to the estimated costs. This has been
disclosed in our declaration of relevant relationships and indemnities.
Approved remuneration may exceed the amount of this upfront payment and can be paid from the assets of the
Creditors Voluntary Liquidation after approval by creditors or the Court.
Disbursements
Disbursements are divided into three types:
Externally provided professional services - these are recovered at cost. An example of an externally
provided professional service disbursement is legal fees.
Externally provided non-professional costs such as travel, accommodation and search fees - these are
recovered at cost.
Internal disbursements such as photocopying, printing and postage. These disbursements, if charged to the
Administration, would generally be charged at cost; though some expenses such as telephone calls,
photocopying and printing may be charged at a rate which recoups both variable and fixed costs. The
recovery of these costs must be on a reasonable commercial basis.
We are not required to seek creditor approval for disbursements paid to third parties, but must account to
creditors. However, we must be satisfied that these disbursements are appropriate, justified and reasonable.
We are required to obtain creditor’s consent for the payment of internal disbursements where there may be a
profit or advantage. Creditors will be asked to approve our internal disbursements where there is a profit or
advantage prior to these disbursements being paid from the administration.
We do not intend on paying internal disbursements.
John McInerney
Joint and Several Liquidator
12 June 2019