John Pettit Pty Ltd (Administrators Appointed) (ACN ) Meeting of creditors pursuant to section 436E of the Corporations Act (2001)

Transcription

1 CORPORATE RECOVERY John Pettit Pty Ltd (Administrators Appointed) (ACN ) Meeting of creditors pursuant to section 436E of the Corporations Act (2001) 22 October 2012

2 Agenda + Procedural matters Chairperson Quorum Attendance Voting Purpose of meeting Replacement of Administrators Other procedural matters + Purpose of Administration + Background + Committee of Creditors + General discussion + Meeting close 1

3 Procedural matters 2

4 Voting + A person is eligible to vote only if they have lodged a proof of debt prior to the meeting. + All resolutions will be decided on the voices unless a poll is demanded before or on the declaration of the result. + A poll may be demanded by: + On a poll: The chairperson; At least two persons present who are entitled to vote; or A person present representing not less than 10% of the total voting rights. A resolution is carried if both a majority in number and value vote in favour; or In a deadlock, the Chairperson may exercise a casting vote. 3

5 Purpose of meeting + Statutory purpose is to: Determine whether to appoint a committee of creditors, and if so, elect the committee members; and Allow creditors to consider any proposal to remove and replace the Administrators. + This meeting has no authority to consider any other business. + At the second statutory meeting a decision is made regarding the company s future. 4

6 Replacement of Administrators + Creditors may resolve to: remove the appointed Administrators from office; and appoint another administrator or administrators of their choice. + We have not been made aware of any alternative Administrator having been nominated or consenting to act. 5

7 Remuneration of Administrators + In accordance with the IPA s Code of Professional Practice, a Schedule of Remuneration Methods and Hourly Rates was enclosed with your meeting information. I now table this schedule. + A Remuneration Report providing details on the remuneration sought will be provided prior to the second meeting of creditors. + Set out below are the Hourly Rates of the personnel currently working on this engagement. Further information regarding Remuneration Methods and Hourly Rates may be found in your meeting information. 6

8 Background 7

9 Purpose of Administration + Administration provides a moratorium period, during which certain rights against the company cannot be enforced. + Administration opens the possibility of restructuring through a Deed of Company Arrangement, should one be proposed. + At the second statutory meeting, creditors vote to determine the company s future. The alternative options are that: The company enter into liquidation; The company enter into a Deed of Company Arrangement; or Control of the company be returned to the director. 8

10 Business information + Company is a trader in rare bank notes. + Principle asset is holding of bank notes. + Operations were conducted by John Pettit, supported by two administrative staff. + Business traded from leased premises in Pitt St, Sydney. + Premises were owned by John Pettit. Mortgagee has now taken possession of the premises and will likely put to market. + Administrators appointed 11 October Investigations into affairs of the company and financial position hampered by a lack of books and records. 9

11 Actions of the Administrators to date + Since appointment, the Administrators have: Physically secured all bank notes on the premises and in bank safety deposit box; Prepared a catalogue of all bank notes held by the company; Sought information from the director as to: Identification and location of assets held by the company, the director, and third parties; Creditor claims; and Security over notes and other claims to the notes; Implemented a process to review claims by third parties against the bank notes; Entered into short term lease of premises after mortgagee took possession; Made copies of all available electronic information held by the company; Complied with all statutory notice requirements; and Provided notice of this meeting to as many creditors as reasonably practicable. 10

12 Financial position John Pettit Pty Ltd (Administrators Appointed) - Preliminary understanding of financial position A$'000 Notes Current position Preliminary draft balance sheet at June 12 Assets Debtor - cash 760 Debtor - bank notes Total debtors 1, Inventory of bank notes held by company 2 Unknow n Inventory of bank notes held by creditors claiming security 1 9,874 Inventory of bank notes held by third parties Unknow n Total inventory 1 9,874 12,965 Our understanding of the financial position of the company is limited by the absence of registers, journals, ledgers and primary documentation. Other current assets Unknow n 2 Non-current assets (largely office fit out) Unknow n 643 Total assets Unknown 13,913 Liabilities Claims of secured creditors (know n) 3 (3,800) (3,369) Claims of secured creditors (unknow n) 3 Unknow n Claims of unsecured creditors Unknow n (12,181) Total liabilities Unknown (15,550) Net assets / (liabilities) Unknown (1,637) All valuations are highly subjective and should be treated as indicative only. 1 At director's retail valuation. 2 Subject to claims by third parties. 3 Subject to verification of security. May not include all secured claims, certain of w hich are yet to be ascertained. 11

13 Assets + Administrators are currently obtaining advice on valuation. + Some notes may be held on consignment or some other basis. The number and value of those notes is unknown. Such claims are all subject to verification. + Notes held by creditors claiming security and other interests have not been verified or valued by the Administrators. + Administrators are seeking information from the director to ascertain the notes held by the director and third parties. 12

14 Creditors claims + Three creditors hold registered charges over notes. + The validity of the securities are yet to be verified by the Administrators. + The amounts of the secured claims are yet to be determined. + There are a number of other arrangements with creditors which are either unregistered security interests or similar. The administrators are examining these arrangements. + The books and records do not provide information regarding unsecured creditors. Accordingly, detailed work in this area and reconstruction of ledgers will be required. 13

15 Committee of Creditors 14

16 Committee of Creditors + Creditors may resolve at this meeting to appoint a Committee of Creditors. + The role of a Committee of Creditors is to: consult with the Administrators about matters relating to the administration; and receive and consider reports by the Administrators. + A Committee of Creditors can not instruct the Administrators. + A Committee of Creditors also has the power to approve the Administrator s remuneration. + Any person seeking election to the Committee on behalf of a corporate entity must provide written authority from the corporate entity. 15

17 General discussion 16

18 General discussion + Questions from the floor Raise your hand State your full name and the name of the creditor that you are representing. + Meeting close. 17

19 Meeting close 18