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Report to Creditors under Insolvency Practice Rule 70-40
Strongbuild Commercial Pty Ltd (In Liquidation)
(“the Company”)
ACN 150 279 637
1 May 2019
Brian Silvia & Andrew Cummins
Joint and Several Liquidators
BRI Ferrier (NSW) Pty Ltd ABN 97 128 947 848 Level 30, Australia Square, 264 George Street, Sydney NSW 2000
GPO Box 7079, Sydney NSW 2001 Phone (02) 8263 2300
Facsimile (02) 8263 2399 Email: [email protected]
Website: www.briferrier.com.au
TABLE OF CONTENTS
1 EXECUTIVE SUMMARY ......................................................................................... 3
2 LIQUIDATOR’S OPINION AS TO WHAT HAPPENED TO THE BUSINESS ................... 4
3 UPDATE ON THE PROGRESS OF THE LIQUIDATION............................................... 5
4 LIKELIHOOD OF A DIVIDEND BEING PAID IN THE LIQUIDATION .......................... 12
5 RECEIPTS AND PAYMENTS ................................................................................. 12
6 REMUNERATION ................................................................................................ 12
7 FUTURE TASKS REQUIRED IN THE LIQUIDATION ................................................ 13
8 CREDITORS’ RIGHTS ........................................................................................... 13
9 FURTHER INFORMATION .................................................................................... 14
10 QUERIES ............................................................................................................ 14
Annexures
1 Formal Proof of Debt Form
2 Summary of Liquidator’s Receipts and Payments
3 ARITA Information Sheet – Creditor Rights in Liquidations
4 ASIC Information Sheet
Strongbuild Commercial Pty Ltd (In Liquidation) | Executive Summary 3
1 EXECUTIVE SUMMARY
As you are aware, we were appointed Joint and Several Voluntary Administrators of Strongbuild
Commercial Pty Ltd (“the Company”) on 15 November 2018 pursuant to Section 436A of the Corporations
Act 2001 (“the Act”). We were subsequently appointed Joint and Several Liquidators at the Second
Meeting of Creditors held on 1 February 2019.
We were also appointed to the following entities:
Strongbuild Pty Ltd (Subject to Deed of Company Arrangement) ACN 150 268 438 (“SB”)
Strongbuild Manufacturing Pty Ltd (Administrators Appointed) ACN 168 916 881 (“SBM”)
This report has been prepared in accordance with Rule 70-40 of the Insolvency Practice Rules
(Corporations). We hereby provide a summary of the conduct of the liquidation over the past three (3)
months.
We have recovered various Company assets during the course of the administration, including cash at
bank and sundry debtors. During the previous 3 months, our focus has been upon the recovery of debtors.
We have been required to engage various former employees of the Company and a limited number of
subcontractors in order to rectify defective works to secure payment of outstanding invoices.
In our Detailed Second Report to Creditors, our investigations identified potential unfair preference
claims, insolvent trading claim and/or other voidable transactions that may be available for the benefit
of creditors. Further investigations will be undertaken as and when funding is available. Notwithstanding,
my report details investigations completed and further tasks required to complete the orderly winding
up of the Company.
We have also lodged a report with the Australian Securities and Investments Commission (“ASIC”)
pursuant to Section 533(1) of the Act based on investigations to date. This report to ASIC is a legislative
requirement in liquidations where potential offences and breaches of the Act by Directors and Officers
of the Company have been identified and/or the estimated return to Unsecured Creditors is less than
fifty (50) cents in the dollar. The report is confidential and is not be available to creditors. We are awaiting
ASIC’s response at this time. If our investigations uncover any further offenses I am able to lodge a further
Report with ASIC detailing these additional findings.
At this stage, a return to ordinary unsecured creditors is unlikely but will ultimately be dependent on
recoveries from the remaining assets of the Company. We note that priority creditors (primarily
outstanding employee claims) will need to be satisfied in full prior to any distribution being made to
ordinary unsecured creditors. It is also too early in the Liquidation to determine the quantum and timing
of any return to creditors, if any. Creditors will be kept informed of developments in the liquidation in
future reports.
Strongbuild Commercial Pty Ltd (In Liquidation) | Liquidator’s Opinion as to what Happened to the Business
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1.1 PREVIOUS REPORTS TO CREDITORS
This report should be read in conjunction with our previous Reports to Creditors dated 16 November
2018 (“First Report”), 22 January 2019 (“Second Report”) and our Circular to Creditors dated 6 February
2019 (“Circular”). Copies of these Reports are available on Request or from our website.
1.2 PREVIOUS MEETINGS OF CREDITORS & COMMITTEE OF INSPECTION
We advise that the last meeting of creditors was held on 1 February 2019, being the Second Meeting of
Creditors. Minutes of this meeting have been lodged with ASIC.
1.3 DECLARATION OF INDEPENDENCE, RELEVANT RELATIONSHIPS AND
INDEMNITIES
We refer to the Declaration of Independence, Relevant Relationships and Indemnities (“DIRRI”) enclosed
in our First Report dated 16 November 2018 and note that there has been no changes to same.
2 LIQUIDATOR’S OPINION AS TO WHAT HAPPENED TO THE
BUSINESS
The Directors have advised that the Company’s failure was due to the termination of a major contractual
relationship and the non-recoverability of inter-company debts.
Whilst we agree with the above statement, we also attribute the following factors to the Company’s
failure:
The Company’s inability to secure additional funding after the loss of a major contract;
Significant loans advanced to related parties resulting in the undercapitalisation of the Company;
and
SBM’s failure to service or repay significant loans advanced to it.
Strongbuild Commercial Pty Ltd (In Liquidation) | Update on the Progress of the Liquidation
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3 UPDATE ON THE PROGRESS OF THE LIQUIDATION
Below is an updated analysis of the Company’s current financial position, incorporating the Director’s
report on Company activities and property (“ROCAP”) and our enquiries to date.
3.1 ASSETS
3.1.1 Cash and Cash Equivalents
The ROCAP indicated that the Company held cash at bank totalling $737,307. We have recovered a
balance of $706,938 to date.
Report
Ref.
Director's ERV
(per ROCAP)
($)
Liquidator's ERV
($)
Assets
Cash and Cash Equivalents 3.1.1 737,307 706,938
Term Deposit 3.1.2 272,292 258,727
Cash on Hand 375 Nil
Debtors 3.1.3 915,862 Unknown
Loans 3.1.4 13,164,601 Unknown
Plant & Equipment 3.1.5 409,381 Unknown
WIP 3.1.6 4,714,088 Nil
Total Assets 20,213,906 965,665
Liabilities
Secured Creditors
Bendigo and Adelaide Bank 3.2.1 Unknown
Lease Creditors 3.2.2 Unknown
Priority Creditors
Employee Entitlements 3.2.3 1,199,562 1,169,740
Unsecured Creditors
Trade Creditors 3.2.4 11,884,980 21,442,803
Statutory Creditors 3.2.4 330,527 108,594
Related Party Creditors: 3.2.5 4,289,720 4,289,720
Total Liabilities 17,704,789 27,010,857
Estimated Net Asset / (Deficiency) 2,509,117 (26,045,192)
Strongbuilds Commercial Pty Ltd (In Liquidation)
Summary of Director's ROCAP
Strongbuild Commercial Pty Ltd (In Liquidation) | Update on the Progress of the Liquidation
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No further realisations are expected from this source.
3.1.2 Term Deposit
The ROCAP identified the Company had term deposits totalling $272,291 which was held as security for
a Performance Bond in relations to a project undertaken for Warrigal Care at Shell Cove.
We have recovered $258,950 in respect to this term deposit.
No further realisations are expected from this source.
3.1.3 Debtors
The ROCAP records debtors with a book value of $915,862. To date, an amount of $113,443 has been
realised from the collection of these debtors.
At this stage we are attempting to collect the remaining balance of the debtors. In this regard, we have
continued to engage various contractors and former employees of the Company to assist with
rectification works.
3.1.4 Loans
The ROCAP records loans totalling $13,164,601. These loans were advanced to associated companies.
We anticipate the loan to Strongbuild Property Pty Ltd will be recoverable in full.
As you are aware, SBM is currently in Voluntary Administration. We have convened a meeting of creditors
to be held on 6 May 2019 which will likely result in the Company being placed into liquidation. A sale of
the business has not been successful and the Administrators proceeded to realise SBM’s assets
immediately via auction. We note that recoveries made have been significantly less than if a sale of the
business had occurred. There have been various factors that hindered the sale as a going concern,
including the tenancy of the Bella Vista trading premises, the ongoing involvement of the directors in the
business and the additional cash outlays required to achieve a viable business.
On this basis, we do not expect to receive a dividend in respect of the $12.7 million loan made to SBM.
Borrower Loan Receivable
($)
Strongbuild Property Pty Ltd 458,898
Strongbuild Manufacturing Pty Ltd
(Administrators Appointed)12,705,703
13,164,601
Strongbuild Commercial Pty Ltd (In Liquidation) | Update on the Progress of the Liquidation
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3.1.5 Plant & Equipment
As discussed in our Second Report, we included the Company’s plant and equipment in the Company’s
sale of business process. However a sale of business was not achieved during the Administration and as
such the Company’s plant and equipment (along with the assets of SBM) were sold as part of the onsite
auction held on 13 & 14 March 2019. Funds from the sale of the Company’s assets has been received
from our auctioneers and we are currently apportioning the sale proceeds between the respective
entities based on the assets realised.
We will report on realisations achieved from the sale of this asset in future reports.
3.1.6 Work In Progress (WIP)
The ROCAP records Work In Progress with a book value of $4,714,088. The majority of this amount
pertains to one project and it is anticipated no recoveries will be made from this source.
3.1.7 Legal Claims
As disclosed in our Second Report, the directors advised of possible legal claims against various parties.
In particular a claim against a developer and its financial advisers in respect of a construction contract
terminated just prior to our appointment. We are currently negotiating a settlement of these claims. The
results of our negotiations will be disclosed in due course.
3.2 LIABILITIES
3.2.1 Secured Creditors
Bendigo and Adelaide Bank Limited (“Bendigo”) holds an All PAAP in respect of an equipment finance
facility provided by SBM. A Deed of Cross-Collateralisation for this facility was executed between Bendigo
and SBM, SB and the Company.
As at the date of the Second Report the pay-out of this facility was $4.27 million. It is expected that there
will be a shortfall to Bendigo following the proceeds from the auction of SBM’s plant and equipment.
Accordingly, Bendigo will seek to participate in the Liquidation of the Company.
3.2.2 Lease Creditors
We note that PPSR creditors have a registered security interest over leased equipment. We confirm that
all lease/rental arrangements were disclaimed and Secured Creditors were invited to collect their goods
during the Administration.
We have notified all PPSR creditors and have responded to queries from secured parties. Our dealings
with PPSR creditors are ongoing.
Strongbuild Commercial Pty Ltd (In Liquidation) | Update on the Progress of the Liquidation
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3.2.3 Priority Creditors
We estimate that Priority Creditor (employee) claims against the Company may be in the order of $1.17
million. Below is an updated summary:
We have advised former employees of their eligibility to lodge a claim under the Fair Entitlement
Guarantee Scheme (“FEG”) with the Department of Jobs and Small Business (“DOJSB”). To date, the
DOJSB have made advancements totalling $871,473.46 to former employees. The DOJSB is entitled to
subrogate employee claims pursuant to Section 560 of the Corporations Act.
We note that the FEG scheme is only available to employees for twelve (12) months from the date of our
appointment. As such, we encourage any employees who have not already done so, to submit their FEG
claims with the DOJSB.
3.2.4 Unsecured Creditors
We note that based on the proof of debts received to date and the amounts previously advised in the
ROCAP we estimate Unsecured Creditors being owed $25.8 million, which includes related party creditors
of $4.3 million. We refer creditors to our Second Report for further particulars regarding Unsecured
Creditor claims. A breakdown is as follows:
We encourage any creditors who have not already done so, to lodge their creditor claims with this office.
In this regard, please complete the Formal Proof of Debt form, attached as Annexure “1”, and return
same together with documentary evidence to support your claim.
Employee Entitlements
ERV Amount
($)
Superannuation 30,843
Annual Leave 262,366
Long Service Leave 55,343
Redundancy 463,058
Payment in Lieu of Notice 358,130
Total Priority Creditor Claims 1,169,740
Unsecured Creditors ERV Amount
($)
Trade Creditors 21,442,803
Statutory Creditors 108,594
Related Party Creditors 4,289,720
Total Estimated Unsecured Creditors 25,841,117
Strongbuild Commercial Pty Ltd (In Liquidation) | Update on the Progress of the Liquidation
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3.2.5 Related Party Creditors
We note that there have not been any changes since our Second Report which included related party
creditors of $4.2 million. We refer creditors to our Second Report for further particulars regarding related
party creditor claims. A breakdown is as follows:
3.3 INVESTIGATIONS TO DATE
In our role as Administrators, we conducted preliminary investigations into the affairs of the Company to
ascertain whether there were any transactions that appeared to be voidable, or other causes of action
available whereby money, property or other benefits may be recoverable by liquidators.
We have not obtained any further Company records/documentation which would alter the outcome of
our investigations conducted during the Administration. Below is a summary of the voidable and other
recoveries that were identified (where further detail can be obtained from the Second Report):
3.3.1 Balance of Loan to Strongbuild Properties Pty Ltd
As identified in our Second Report, the Company advanced a total of $1.36 million to Strongbuild
Properties Pty Ltd of which $900,000 has been repaid to date. The balance outstanding in respect of this
loan is $458,967 as at the date of our appointment.
We anticipate that this loan will be recoverable in full and will shortly be issuing a demand for payment
of the full amount.
3.3.2 Uncommercial Transactions
As detailed in our Second Report, we have identified a number of potential uncommercial transactions.
We note that one of the criteria’s for a transaction to be uncommercial is that the Company be insolvent
at the time or as a result of entering into the transaction.
The solvency of the Company is heavily reliant on an assessment as to the ability of SBM to repay the
$12.7M loan from the Company. In order to make this assessment, we have considered if the Directors
believed that the SBM had the ability to repay the loan. We are aware that prior to our appointment, the
Directors were attempting to sell the business of SBM and were of the opinion that there were reasonabe
prospects of a sale. If the sale had occurred prior to administration, it may have resulted in sufficient
funds to repay the loan.
Related Party Creditors Amount
($)
Strongbuild Manufacturing Pty Ltd 426,459
Strongbuild Pty Ltd 3,849,907
The Trustee for the Strong Family Trust 12,100
The Trustee for the Kaukauwa Family Trust 1,254
Total Related Party Creditors 4,289,720
Strongbuild Commercial Pty Ltd (In Liquidation) | Update on the Progress of the Liquidation
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3.3.2.1 Dividends Paid
As identified in our Second Report, the Company paid the following dividends to Shareholders from FY16
onwards:
We note the determination of whether these dividend payments are classed as uncommercial
transactions is dependent on pending investigations into associated entities, specifically SBM.
We will make further comments in this regard in future reports.
3.3.2.2 Loans to Directors
As identified in our Second Report, the Company entered into certain arrangements with Directors
whereby ‘loans’ were provided to Directors which were recorded as unpaid Work-in-Progress in Company
records. These loans were serviced by the Directors in exchange for working full-time at the Company at
the rate of $20,000 per month.
We anticipate that this loan receivable will be recoverable in full.
3.3.2.3 Unfair preferences
As advised in our Second Report we identified various payments from the Company which may be
characterised as preferential payments.
We note that in order to establish an unfair preference claim the Liquidators would need to determine
the following:
(a) the Company must have been insolvent at the time of the transaction; and
(b) at the time the payment was received, there were reasonable grounds for the creditor to suspect
the Company was insolvent or that the payment would make the Company become insolvent.
We advise at this stage further investigation is required before any recoverability claim can be
established.
3.3.3 Insolvent Trading Claim
We refer to our Second Report and note that our preliminary assessment determined that the Directors
may have allowed the Company to continue to trade whilst insolvent from approximately 30 June 2018.
Payment Date
Dividend to
Shareholders
($)
14 July 2015 333,340
26 July 2016 500,000
7 July 2017 500,000
1,333,340
Strongbuild Commercial Pty Ltd (In Liquidation) | Update on the Progress of the Liquidation
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3.3.3.1 Litigation and Funding
Litigation in respect of Insolvent Trading is carried out in the ordinary civil courts. The costs in pursuit of
a claim are borne by the Liquidators who may seek funding through the following methods:
Utilising Company assets; or
Entering into a form of borrowing called “litigation funding”; or
Asking creditors to make a voluntary contribution in the pursuit of a claim.
If a claim is successful some of the costs, but not all of them, may also be ordered to be paid by the
Directors. If the Liquidators fail in some or all of the claim, they may be ordered to pay some or all of the
costs incurred by the Directors in defending the claim. In practice, Liquidators can only pursue claims
where they have funds available to meet both their own and the Defendants’ costs, or they have the
benefit of “insurance” against costs provided either by creditors or a commercial litigation funder.
If the Company has no assets and neither a litigation funder nor creditors are willing to fund the litigation,
no claim will be pursued. Litigation in respect of Insolvent Trading can be expensive, slow and risky. The
Liquidators, funder and creditors are exposed to the risk that if the Directors are found liable, they may
not be able to meet the judgment against them.
3.3.3.2 Recovery of Claim
In determining whether an insolvent trading claim could be pursued, the Liquidators would need to
investigate the respective personal financial positions of the potential defendants. We have been advised
that the Directors are prepared to provide a statement of their financial position to us to determine their
capacity to meet an insolvent trading claim. At this stage, we are yet to receive this information. The
Directors have also indicated that this information will be provided on a confidential basis and cannot be
made available to creditors. Director are not required to provide to us, information pertaining to their
personal affairs.
We have not identified at this stage an active management liability policy for the Directors, which would
respond to an insolvent trading claim.
To pursue recovery of the insolvent trading claim, there would be significant costs involved in obtaining
further evidence, preparing an insolvency report and conducting complex and protracted legal
proceedings.
Finally, we note that the Directors may have defences available to them, should an insolvent trading claim
be pursued. Section 588H of the Corporations Act, outlines the defences available to Directors.
It is up to the Directors to put forward a defence. However, based on our preliminary enquiries, it appears
that the Directors would arguably have some defences that may be available to them to attempt to
mitigate part of an insolvent trading claim.
Strongbuild Commercial Pty Ltd (In Liquidation) | likelihood of a dividend being paid in the liquidation
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3.3.4 Failure to Maintain a Subcontractor Trust Account
The Company was required pursuant to Regulation 6 of the Building and Construction Industry Security
of Payment Regulations to maintain a trust account (for its subcontractors) on projects with a value of
$20M or more. The Company did not maintain such trust accounts and we intend to refer this breach to
the relevant authorities.
3.3.5 Report to ASIC
We have submitted a report of our findings to ASIC pursuant to Section 533(1) of the Act. This report to
ASIC is a legislative requirement in Liquidations where potential offences and breaches of the Act by
Directors and Officers of the Company have been identified and/or the estimated return to Unsecured
Creditors is less than fifty (50) cents in the dollar. The report is confidential and not available to creditors.
At this stage, we have not yet received a response from ASIC.
4 LIKELIHOOD OF A DIVIDEND BEING PAID IN THE LIQUIDATION
The quantum of the return to creditors will be dependent on the realisation of remaining Company assets
and insolvent trading claim against the Directors, if any. Please note these are estimates only, and the
actual results may vary materially.
In summary, we estimate returns to creditors as follows:
Priority Creditors (employee) between nil to 100 cents in the dollar.
No return expected to Ordinary Unsecured Creditors.
The timing of a dividend from the Company is unknown at this stage. Creditors will be kept apprised in
future reports.
5 RECEIPTS AND PAYMENTS
Attached as Annexure “2” is a summary of our receipts and payments for the Liquidation period to 1 May
2019.
Details of the Receipts and Payments for the Voluntary Administration Period have been lodged with ASIC
and are available for inspection either at this office and can be obtained from ASIC.
6 REMUNERATION
At the Meeting of Committee of Inspection held on 13 December 2018 and the Second Meeting of
Creditors held on 1 February 2019, creditors approved our remuneration in respect of the Voluntary
Administration and Liquidation. A breakdown is as follows:
Strongbuild Commercial Pty Ltd (In Liquidation) | Future Tasks Required in the Liquidation
13
At this stage, we do not intend to seek further approval from creditors in respect of our remuneration.
7 FUTURE TASKS REQUIRED IN THE LIQUIDATION
As detailed above, we anticipate that the following matters will be dealt with during the Liquidation
moving forward:
Receipt of funds from the sale of the Company’s plant and equipment;
Subject to funding, consider and pursue any voidable transactions, likely via litigation;
Settle claim against Frasers Property;
Complete further investigations to ASIC, or any other regulatory bodies, if required;
Pay dividend to Creditors, subject to available funds;
Correspondence with creditors and employees; and
Statutory lodgements and general administrative matters
If creditors have information they believe is relevant to this matter, they are requested to contact our
office immediately.
The timeframe for the completion of this liquidation is dependent on any recovery actions required. It is
likely this matter will be completed within twelve (12) to eighteen (18) months.
8 CREDITORS’ RIGHTS
Pursuant to Clauses 70-40, 70-45, 75-15, 85-5, 90-24 and 90-35 of the Insolvency Practice Schedule
(Corporations) and Rule 70-30 of the Insolvency Practice Rules (Corporations) 2016, we are required to
give certain information to creditors as to their rights in the administration.
Accordingly, we attach as Annexure “3” further information regarding ‘Creditor Rights in Liquidations’.
Remuneration
Approval Sought
Remuneration
Drawn
Period ($) ($)
Voluntary Administration 657,669.50 540,084.00
Liquidation 200,000.00 0.00
Total 857,669.50 540,084.00
Strongbuild Commercial Pty Ltd (In Liquidation) | Further Information 14
9 FURTHER INFORMATION
We have attached as Annexure “4” an ASIC information sheet entitled “Insolvency information for
directors, practitioners, employees, creditors and investors”. This publication provides basic information
about the different types of external administrations, including Liquidation, and reference to further
sources of information available on the ASIC website at www.asic.gov.au .
Please note that we are not required to publish notices in the print media. ASIC maintains an online
notices page for external administrators to publish notices in respect of the Company. Creditors are
encouraged to visit http://insolvencynotices.asic.gov.au throughout the liquidation to view any notices
which may be published by the Liquidator in respect of the Company. These notices include:
notices relating to appointments
notices of meetings of creditors
notices calling for proofs of debt and intention to declare dividends
If you would prefer to receive communications (including any Notices of Meeting) from us by email,
please provide your authority in the enclosed “Proof of Debt form” attached as Annexure “1”.
10 QUERIES
The BRI Ferrier staff member responsible for this matter is as follows:
BRI Contact: Mr Jack Li
Phone: (02) 8263 2300
Email: [email protected] (preferred)
Mailing: GPO Box 7079, Sydney NSW 2001
Facsimile: (02) 8263 2399
Yours faithfully
STRONGBUILD COMMERCIAL PTY LTD (IN LIQUIDATION)
Andrew Cummins
Joint and Several Liquidator
Strongbuild Commercial Pty
Ltd
(In Liquidation)
ACN 150 279 637
Annexure “1”
Formal Proof of Debt Form
FORM 535 CORPORATIONS ACT 2001
Subregulation 5.6.49(2)
FORMAL PROOF OF DEBT OR CLAIM (GENERAL FORM) To the Joint and Several Liquidators of Strongbuild Commercial Pty Ltd ACN 150 279 637 1. This is to state that the company was, on 15 November 2018 (1) and still is, justly and truly indebted to(2) (full name): ...................................................................................................................................................................................................
(‘Creditor’)
................................................................................................................................................................................................... of (full address)
for $ .............................................................................................................. dollars and ............................................................. cents. Particulars of the debt are (please attach documents to support your claim e.g. purchase orders, invoices, interest schedules):
Date Consideration(3)
state how the debt arose Amount $ (Incl. GST)
Remarks(4)
include details of voucher substantiating payment
2. To my knowledge or belief the creditor has not, nor has any person by the creditor's order, had or received any manner of satisfaction
or security for the sum or any part of it except for the following: .................................................................
Insert particulars of all securities held. Where the securities are on the property of the company, assess the value of those securities. If any bills or other negotiable securities are held, specify them in a schedule in the following form:
Date Drawer Acceptor Amount $c Due Date
I am not a related creditor of the Company (5)
I am a related creditor of the Company (5) relationship:_______________________________________________
3A.(6)* I am employed by the creditor and authorised in writing by the creditor to make this statement. I know that the debt was incurred for
the consideration stated and that the debt, to the best of my knowledge and belief, still remains unpaid and unsatisfied. 3B.(6)* I am the creditor's agent authorised to make this statement in writing. I know that the debt was incurred and for the consideration stated
and that the debt, to the best of my knowledge and belief, still remains unpaid and unsatisfied.
I authorise the External Administrators’ (whether as Voluntary Administrators/Deed Administrators/Liquidators) on behalf of the Company and his or her employees and agents to send and give electronic notification of documents in accordance with Section 600G of the Corporations Act 2001 to the following email address: Contact Name: _____________________________________________________________________________
Email Address: _____________________________________________________________________________
DATED this……………….day of……………………………………….2019 NAME IN BLOCK LETTERS ................................................................................................................................................................................
Occupation............................................................................................................................................................................................................
Address.................................................................................................................................................................................................................
Signature of Signatory ..........................................................................................................................................................................................
OFFICE USE ONLY
POD No: ADMIT (Voting / Dividend) - Ordinary $
Date Received: ADMIT (Voting / Dividend) – Preferential $
Entered into CORE IPS: Reject (Voting / Dividend) $
Amount per CRA/RATA $ Object or H/Over for Consideration $
Reason for Admitting / Rejection
PREP BY/AUTHORISED TOTAL PROOF $
DATE AUTHORISED / /
Proof of Debt Form Directions * Strike out whichever is inapplicable. (1) Insert date of Court Order in winding up by the Court, or date of resolution to wind up, if a voluntary winding up. (2) Insert full name and address (including ABN) of the creditor and, if applicable, the creditor's partners. If prepared by an employee
or agent of the creditor, also insert a description of the occupation of the creditor. (3) Under "Consideration" state how the debt arose, for example "goods sold and delivered to the company between the dates of
.....................................................", "moneys advanced in respect of the Bill of Exchange". (4) Under "Remarks" include details of vouchers substantiating payment. (5) Related Party / Entity: Director, relative of Director, related company, beneficiary of a related trust. (6) If the Creditor is a natural person and this proof is made by the Creditor personally. In other cases, if, for example, you are the
director of a corporate Creditor or the solicitor or accountant of the Creditor, you sign this form as the Creditor’s authorised agent (delete item 3A). If you are an authorised employee of the Creditor (credit manager etc), delete item 3B.
Annexures A. If space provided for a particular purpose in a form is insufficient to contain all the required information in relation to a particular
item, the information must be set out in an annexure. B. An annexure to a form must:
(a) have an identifying mark;
(b) and be endorsed with the words:
i) "This is the annexure of (insert number of pages) pages marked (insert an identifying mark) referred to in the (insert description of form) signed by me/us and dated (insert date of signing); and
(c) be signed by each person signing the form to which the document is annexed.
C. The pages in an annexure must be numbered consecutively. D. If a form has a document annexed the following particulars of the annexure must be written on the form:
(a) the identifying mark; and
(b) the number of pages. E. A reference to an annexure includes a document that is with a form.
Strongbuild Commercial Pty
Ltd
(In Liquidation)
ACN 150 279 637
Annexure “2”
Summary of Liquidator’s Receipts
and Payments
Summarised Receipts & Payments
Strongbuild Commercial Pty Ltd(In Liquidation)Transactions From 01 February 2019 To 01 May 2019
A/C Account Net GST Gross
Page 1 of 1 IPS SQL Ver. 2018.11 01 May 2019 05:22 pm
3 Sales (3) GST free Supply 36.65 0.00 36.6561 IT Expenses (GST) 556.44 55.64 612.0872 Sundry Debtors (B) 78,062.45 0.00 78,062.4574 Cash at Bank 144,620.71 0.00 144,620.7176 Reimburse costs (Recovery Perform Bonds) 63,636.36 6,363.64 70,000.0077 Plant & Equipment 26,000.00 2,600.00 28,600.0079 Bond Refund 133,632.50 0.00 133,632.5080 Refund of Lease Payments 642.35 0.00 642.3584 GEERS Receipts 16,082.00 0.00 16,082.0089 Gas Refund (pre-appt) (No GST) 7,698.74 0.00 7,698.74233 GST Clearing Account 55,872.00 0.00 55,872.00
Total Receipts (inc GST) $526,840.20 $9,019.28 $535,859.48
10 Purchases 109,445.09 10,944.51 120,389.6028 Advertising 2,122.81 212.29 2,335.1041 Professional Fees 47,976.93 4,797.69 52,774.6244 Repairs & Maintenance 16,246.15 1,624.61 17,870.7646 Sundry Expenses 54.55 5.45 60.0048 Telephone & Fax 126.36 12.64 139.0049 Transport / Courier 359.12 35.91 395.0350 Vehicle Running Costs 1,374.05 137.41 1,511.4652 Sub-Contractors 151,822.35 0.00 151,822.3553 Stamp Duty 6.46 0.00 6.4657 System Software 5,247.00 524.70 5,771.7058 Trading Exenditure 588.15 58.81 646.9659 IT Expenses (No GST) 1,331.25 0.00 1,331.25132 Bank Charges 156.65 0.00 156.65151 Stationery & Printing 10,436.24 1,043.62 11,479.86165 Administrators' Remuneration 49,508.00 4,950.80 54,458.80166 Administrators' Disbursements 921.74 92.17 1,013.91228 Sale of Business Refundable Deposit 20,000.00 0.00 20,000.00
Total Payments (inc GST) $417,722.90 $24,440.61 $442,163.51
Balance in Hand $93,695.97
Strongbuild Commercial Pty
Ltd
(In Liquidation)
ACN 150 279 637
Annexure “3”
ARITA Information Sheet – Creditor
Rights in Liquidations
ARITA ACN 002 472 362
Level 5, 191 Clarence Street, Sydney NSW 2000 Australia | GPO Box 4340, Sydney NSW 2001 t +61 2 8004 4344 | e [email protected] | arita.com.au
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 V1_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
Strongbuild Commercial Pty
Ltd
(In Liquidation)
ACN 150 279 637
Annexure “4”
ASIC Information Sheet
Insolvency information for directors, employees, creditors andshareholdersThis information sheet (INFO 39) lists ASIC's information sheets for directors, employees, creditors and shareholdersaffected by a company's insolvency.
We have produced these with endorsement from the Australian Restructuring Insolvency & Turnaround Association(ARITA).
The information sheets give a basic understanding of the three most common company insolvency procedures –liquidation, voluntary administration and receivership – as well as the independence requirements for externaladministrators and approving external administrator remuneration. There is also a glossary of commonly used insolvencyterms.
List of information sheets
INFO 41 Insolvency: A glossary of termsINFO 42 Insolvency: A guide for directorsINFO 43 Insolvency: A guide for shareholdersINFO 45 Liquidation: A guide for creditorsINFO 46 Liquidation: A guide for employeesINFO 54 Receivership: A guide for creditorsINFO 55 Receivership: A guide for employeesINFO 74 Voluntary administration: A guide for creditorsINFO 75 Voluntary administration: A guide for employeesINFO 84 Independence of external administrators: A guide for creditorsINFO 85 Approving fees: A guide for creditors
Where can I get more information?
Further information is available from the ARITA website. The ARITA website also contains the ARITA Code ofProfessional Practice for Insolvency Practitioners.
This is Information Sheet 39 (INFO 39) updated on 1 September 2017. Information sheets provide conciseguidance on a specific process or compliance issue or an overview of detailed guidance.
Last updated: 01/09/2017 10:57
