Glossary of Terms Introduction... 4

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1 Report to creditors Kailis Organic Olive Groves Ltd (Receivers and Managers Appointed) ACN Organic Olive Management Ltd ACN Kailis Olive Processing Pty Ltd ACN Everyday Organic Pty Ltd ACN (all In Liquidation) ( the Companies ) 9 March 2018

2 Contents Glossary of Terms Introduction Liquidation update Realisation of Assets Insurance policy Estimated return to creditors Estimated completion of winding up Remuneration Report Receipts and Payments Contact details... 5 D KAILORG06-s508 Report to creditors-mh 2

3 Glossary of Terms ACN Australian Company Number The Act Corporations Act 2001 Administrators ARITA ASIC Deed Administrators DIRRI DOCA James Thackray and Shaun Fraser of McGrathNicol Australian Restructuring Insolvency & Turnaround Association Australian Securities and Investments Commission James Thackray and Shaun Fraser of McGrathNicol Declaration of Independence, Relevant Relationships and Indemnities Deed of Company Arrangement EDO Everyday Organic Pty Ltd ACN IPAA Insolvency Practitioners Association of Australia KOOG Kailis Organic Olive Groves Limited ACN KOP Kailis Olive Processing Pty Ltd ACN Liquidator Shaun Fraser of McGrathNicol OOM Organic Olive Management Limited ACN Receivers and Managers Westpac Mark Mentha and Clifford Rocke of KordaMentha Westpac Banking Corporation Limited D KAILORG06-s508 Report to creditors-mh 3

4 1 Introduction I refer to: James Thackray and Shaun Fraser appointment as Joint and Several Liquidators on 12 December 2012 of: Kailis Organic Olive Groves Limited ( KOOG ); Organic Olive Management Ltd ( OOM ); Kailis Olive Processing Pty Ltd ( KOP ); and Everyday Organic Pty Ltd ( EDO ). Collectively, KOOG, OMM, KOP, and EDO are referred to as the Companies or Kailis Organic Olive Group ; James Thackray s subsequent retirement as Liquidator of the Companies on 26 February 2016; and Liquidators reports pursuant to s508(1)(b)(ii) of the Corporations Act dated 24 February 2014, 22 June 2015, 4 March 2016 and 9 March 2017 ( Reports ). There have been no new significant developments in the liquidation since the Reports and as a result, I have not convened an annual general meeting of the creditors of the Companies. This serves as a report to the Australian Securities and Investments Commission under section 508(1)(b)(ii) of the Corporations Act, For the sake of efficiency, I have produced one report outlining the required information for all of the Companies. 2 Liquidation update 2.1 Realisation of Assets Insurance policies On 11 October 2013, the Receivers and Managers retired over KOOG s right, title and interest to claim under an insurance policy ( the Policy ). To pursue the claim under the Policy, the secured creditor agreed to provide the Liquidator limited funding out of any settlement proceeds to undertake the investigations. At present, both the existing settlement proposal to the Liquidator and the potential maximum claim under the Policy are insufficient net of costs to repay the secured creditor in full, therefore no funds would be available for distribution to other creditors. As detailed in the Liquidator s report dated 9 March 2017, investigations were conducted but the Liquidator s costs exceeded the funding limit agreed with the secured creditor. Therefore, the Liquidator sought interest from creditors for additional funding to progress the claim. One party approached the Liquidator to consider funding the claim, though subsequently declined after separate discussions with the Liquidator and the secured creditor. Due to no further options available to the Liquidator, the Liquidator intends to progress the existing settlement proposal under the Policy. Timing of the funds to be received from the settlement proceeds is unknown due to the nature of the Policy. The Liquidator is aware the Receivers and Managers of KOOG have a separate insurance claim which is yet to be realised. 2.2 Estimated return to creditors Any realisations arising from the claim under the Policy will be distributed first to the secured creditor and then to unsecured creditors in accordance with the priorities as set out in section 556 of the Act. The existing settlement proposal will be insufficient to repay the secured creditor in full and therefore there will be no return to unsecured creditors. D KAILORG06-s508 Report to creditors-mh 4

5 2.3 Estimated completion of winding up The only remaining assets to be realised by the Liquidator and the Receivers and Managers of KOOG are two insurance claims. Due to the nature of the claims under the separate insurance policies, the estimated completion of the Companies is unknown. 3 Remuneration Report A Liquidator s remuneration can only be fixed by resolution of a committee of creditors, the Companies creditors or by application to the Court. In accordance with Section 499E of the Act and the IPAA Code of Professional Practice, a Schedule of Remuneration Methods and Hourly Rates was provided to you with my initial communication and tabled at the first creditors meeting. A remuneration report setting out Liquidator s remuneration incurred and approved for the Group is not included within this report as Liquidator s remuneration exceeds existing approvals and I do not intend to seek any further approvals at this stage. 4 Receipts and Payments The receipts and payments to and from the Liquidator s bank accounts for the period from 13 December 2016 to 12 December 2017 is summarised below: Liquidator's receipts and payments for the period from 13 December 2016 to 12 December 2017 Pursuant to section 539(5) of the Act, I advise that accounts of receipts and payments for the period of the winding up have been prepared and lodged with ASIC. 5 Contact details KOOG OOM KOP EDO Opening balance Receipts GST refund Total receipts Payments Document storage (319) Total payments (319) Cash at bank as at 12 December The Liquidator's previous Annual Report provided a summary of receipts and payments and closing cash balance from 20 February 2016 to 3 March 2017 of $706. Should you have any queries please contact Magnus Howie of my staff on (08) Shaun Fraser Liquidator D KAILORG06-s508 Report to creditors-mh 5