Cash at bank At the date of our appointment the Company had petty cash of $300 and its bank account was $12k overdrawn.

Transcription

1 Our ref: v.1 18 December 2017 To the creditor as addressed Dear Sir/Madam Jones Coulter Young Pty Ltd (In Liquidation) atf JCY Unit Trust ACN (the Company) trading as JCY Architects and Urban Designers ABN Initial Information for creditors - Appointment of Liquidators The purpose of this document is to provide you with information about the liquidation of Jones Coulter Young Pty Ltd and your rights as a creditor. We were appointed joint and several Liquidators of the Company on 4 December Our Declaration of Independence, Relevant Relationships and Indemnities (DIRRI) is attached at Appendix A. The DIRRI assists you to understand any relevant relationships that we have, and any indemnities or upfront payments that have been provided to us. In our view, none of the relationships disclosed in this document affect our independence. 1. What is a creditors voluntary liquidation? A creditors voluntary liquidation, or CVL, is a liquidation initiated by the company where the company is unable to pay all of its creditors in full. This means that the company is insolvent. The Company is the corporate trustee of the JCY Unit Trust. It is our preliminary view that all of the Company s assets are held and liabilities are incurred in its capacity as trustee for the JCY Unit Trust. According to JCY s records, you may be a creditor of the Company in its capacity as trustee of the JCY Unit Trust. 2. Update on liquidation to date We have assumed full control of the Company s affairs. The powers of the directors of the Company are currently suspended. We are continuing to operate the business of the Company on a scaled-down basis whilst ongoing projects are finalised or transitioned to a new architect. We expect to close JCY s office and cease trading on Thursday 21 December As stated in our letter to suppliers dated 6 December 2017, we will not accept liability for any goods purchased or services rendered by suppliers that are not made with the authority of the liquidators or one of the liquidators authorised representatives. If you are uncertain about the status of outstanding or unfulfilled orders, please contact this office immediately. Level 21, 140 St Georges Terrace Perth WA 6000 PO Box 7761 Cloisters Square WA 6850 t: f: PPB Pty Ltd trading as PPB Advisory ABN Liability limited by a scheme approved under Professional Standards Legislation

2 If you have supplied goods to the Company on consignment, or have registered a security interest on the Personal Property Securities Register (PPSR), you should have received a separate letter from us providing you with further instructions. As above, please contact this office if you have not received this letter. 2.1 Trading on Following our appointment, we attended JCY s office and after an urgent assessment of the projects on foot, made the decision to trade the business of the Company on a limited basis to: convert the balance of work in progress (WIP) to receivables (estimated value between $80k to $100k) assist clients in transitioning ongoing projects to protect the value of outstanding receivable balances (estimated value between $200k to $245k) explore the possibility of selling the business as a going concern. As we are still trading the business, the costs incurred by the liquidators for things like salaries, rent, utilities, insurance, and other incidental expenses are yet to be finalised. However, we estimate that these costs will be at least result in a break-even position relative to the WIP converted, and possibly may result in a small trading profit (before the liquidators remuneration costs). JCY had 18 employees at the date of our appointment. We terminated the employment of nine staff immediately as they were not engaged on billable client work. The remaining employees will be progressively terminated as the projects they are working on are completed/transitioned. As noted earlier in this update, we anticipate trading will cease on Thursday 21 December Other assets Cash at bank At the date of our appointment the Company had petty cash of $300 and its bank account was $12k overdrawn. Pre-appointment debtors Pre-appointment debtors were $252k at the date of our appointment. As at 18 December 2017, we had collected approximately $124k of this balance. Plant, equipment, and vehicles We engaged Tiger Asset (Tiger) to value JCY s office furniture, equipment, and motor vehicles. At this point, the valuation report is commercially sensitive as we are in discussions with various parties regarding the purchase of the assets. Subject to the outcome of those discussions, we will instruct Tiger to collect and auction any remaining plant, equipment, and vehicles once we have ceased trading. 2.3 Employee entitlements We are currently finalising the employee entitlement calculations and will separately write to employees by 21 December 2017 outlining this position. 3. Summary of the Company s affairs We received a Report as to Affairs (RATA) from the directors on 5 December A summary of JCY s affairs from the information in the RATA is attached at Appendix B. 2

3 We have also attached at Appendix C a list of creditors, including their address and the estimated amounts of their claims, that are shown in the records of JCY. Any creditors related to the Company/Business are identified. 4. 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 be dealt with in the liquidation. 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 this office as soon as possible. 5. Your rights as a creditor Information regarding your rights as a creditor is provided in the Information Sheet included as Appendix D. This includes your right to: make reasonable requests for information make reasonable requests for a meeting give directions to us appoint a reviewing liquidator to replace us as joint and several Liquidators. We 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 the Company, we are required to 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 D. Notwithstanding the creditors rights to request a meeting described above, the Liquidators have decided to convene a meeting of creditors to provide an update on the progress of the liquidation, and to enable creditors to vote on a number of resolutions, including the liquidators remuneration and disbursements. Details of the meeting are included at Section 7 of this update. 6. Costs of the liquidation Included at Appendix E is our Initial Remuneration Notice. This document provides you with information about how we will get paid for undertaking the liquidation. Our initial notice to the directors estimated liquidation fees of $50,000. The actual fees we expect to incur exceed this amount because significant time has been incurred: negotiating and finalising agreements with key clients dealing with queries from sub-consultants regarding their ongoing work for JCY on client projects dealing with various queries from the landlord regarding the office premises assessing the employee entitlement position liaising with our legal advisors regarding various issues. 3

4 7. Meeting of creditors A meeting of the Company s creditors will be held as follows: Date: 2 February 2018 Meeting time: am Venue: PPB Advisory Level St George s Terrace Perth WA 6000 Meeting documentation is attached at Appendix F including: Notice of meeting Appointment of proxy Proof of debt form. Please return the proof of debt and appointment of proxy forms to our office by 4.00pm on Thursday 1 February Creditors who wish to attend by telephone must contact Caitlin Morrissey of this office on or by on cmorrissey@ppbadvisory.com before 4.00pm on Thursday 1 February We will be seeking approval of the following resolutions at the meeting of creditors: Resolution Resolution 1 To approve the Liquidators remuneration for the period 4 December 2017 to 15 December 2017 of $38, plus GST, as set out in the Remuneration Approval Report dated 18 December Resolution 2 To approve the Liquidators remuneration for the period 16 December 2017 to the conclusion of the liquidation up to a maximum of $40, plus GST, as set out in the Remuneration Approval Report dated 18 December Resolution 3 To approve the Liquidators disbursements for the period 4 December 2017 to 15 December 2017 of $34.30 plus GST as set out in the Remuneration Approval Report dated 18 December Resolution 4 To approve the Liquidators disbursements for the period 16 December 2017 to the conclusion of the liquidation of $ plus GST as set out in the Remuneration Approval Report dated 18 December Resolution 5 To approve early destruction of the Company s books and records six months after finalisation subject to authorisation from ASIC. Resolution 6 To authorise the Liquidators to compromise debts greater than $100,000, pursuant to section 477(2A) of the Corporations Act Resolution 7 To authorise the Liquidators to enter into contracts with a duration of longer than three months, pursuant to section 477(2B) of the Corporations Act

5 Based on the above proposed resolutions, we will be asking creditors to approve the following remuneration and internal disbursements: Remuneration Amount $ 4 December 2017 to 15 December 2017 $38, December 2017 to the finalisation of the liquidation $40, Total $79, Internal disbursements Amount $ 4 December 2017 to 15 December December 2017 to the finalisation of the liquidation $34.30 $ Total $ Subject to any unforeseen complexities in the liquidation, the Liquidators reserve the right to seek further remuneration. In this regard, we may write to creditors in future and ask that you approve our remuneration for the work done 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. Attached at Appendix G is a detailed report on our remuneration, called a Remuneration Approval Report. We are unable to pay our remuneration without the approval of creditors or the court. 8. What happens next? We will proceed with the liquidation, including: finalising trading and issuing final invoices to clients realising office furniture, equipment, and vehicles recovering outstanding debtors holding the abovementioned meeting of creditors investigating the Company s affairs reporting to the Australian Securities and Investments Commission (ASIC). We will provide a further report to creditors within three months. 9. Where can you get more information? You can access additional information on the following websites: ARITA at ASIC at 5

6 10. About PPB Advisory PPB Advisory is a national firm operating throughout Australia, specialising in restructuring and insolvency. For further information regarding the firm, please visit our website Yours faithfully Melissa Humann and Simon Theobald Liquidators Enc Appendices A. Declaration of Independence, Relevant Relationships and Indemnities B. Summary of RATA C. List of creditors identifying related parties D. Information sheet Creditors rights in liquidations E. Initial Remuneration Notice F. Notice of meeting, proxy and proof of debt forms G. Remuneration approval report Date of appointment: 4 December 2017 Contact name: Caitlin Morrissey Telephone number: cmorrissey@ppbadvisory.com 6

7 A. Declaration of Independence, Relevant Relationships and Indemnities 7

8 Declaration of Independence, Relevant Relationships and Indemnities Jones Coulter Young Pty Ltd (In Liquidation) atf JCY Unit Trust ACN (the Company) trading as JCY Architects and Urban Designers ABN A Practitioner appointed to an insolvent entity is required to make declarations as to: A. their independence generally B. relevant relationships, including: i. the circumstances of the appointment ii. any relationships with the Company and others within the previous 24 months iii. any prior professional services for the Company within the previous 24 months iv. any that there are no other relationships to declare and C. any indemnities given, or up-front payments made, to the Practitioner. This declaration is made in respect of us, our partners, PPB Advisory and the related entities of PPB Advisory. A list of related entities of PPB Advisory is included in Schedule A at the end of this document. A. Independence We, Melissa Humann and Simon Theobald of PPB Advisory, Level 21, 140 St Georges Terrace, Perth WA 6000, undertook a proper assessment of the risks to our independence prior to accepting the appointment as joint and several Liquidators of the Company in accordance with the law and applicable professional standards. This assessment identified no real or potential risks to our independence. We are not aware of any conflicts at the time of our appointment or any reasons that would prevent us from accepting this appointment. In the event that any conflict arises, we will seek independent legal advice or court directions if appropriate. In the event that this declaration needs to be updated we will issue written notice to all known creditors as per the Company s records. A list of related entities of PPB Advisory is included in Schedule A at the end of this document. B. Declaration of Relationships i. Circumstances of appointment This appointment was referred to us by Mr Bill Keays of Keays & Associates Chartered Accountants. Mr Keays is the Company s external accountant and was engaged to prepare annual financial statements and tax returns for the Company and the JCY Unit Trust. Melissa Humann (MH) attended the following meetings with the Company s directors Andrew Rogerson, Ian Hart and Scott McConn: 1. 4 April 2017 the initial meeting where the directors provided MH with an overview of the Company s financial position and the steps they were taking to improve the position, including discussions with the Company s financier.

9 2. 27 July 2017 a meeting to update MH on the Company s financial position and to discuss the options available to the Company, including an overview of insolvency processes August 2017 a meeting to discuss an options analysis report incorporating a highlevel review of the Company s financial position and forecasts which had been prepared by MH. In this meeting, MH was joined by Colin Egan and Andrew Killer of PPB Advisory September 2017 a meeting to discuss the key features of different insolvency processes, in particular Voluntary Administrations, Deeds of Company Arrangement and Creditors Voluntary Liquidations. MH also outlined the issues likely to be faced in an insolvency process because of the trust structure of the business September 2017 a brief meeting to update MH on the Company s financial position. For the options analysis report and two subsequent meetings (items 3, 4 and 5 listed above), PPB Advisory was paid a fee of $4, plus GST. On 22 November 2017, Simon Theobald (ST) met with Andrew Rogerson and Ian Hart to discuss the options available to the Company. On 27 November 2017 ST had a telephone conversation with the Company s internal accountant regarding the potential liquidation appointment. On 28 November 2017, MH had a meeting with Andrew Rogerson and Ian Hart, and their legal adviser, Tom Darbyshire of Kott Gunning. The purpose of this meeting was to advise MH that the directors had formed a view that the Company needed to enter into an insolvency process. Between 28 November 2017 and the date of appointment (4 December 2017), MH exchanged various correspondence with the Company to obtain background information to plan for the proposed appointment, as well as to provide the directors with the documents necessary to place the Company into liquidation. The exchanges between the Liquidators and the directors occurred over a period of eight (8) months and the purpose of each exchange was to: 1. understand the financial situation of the insolvent at that point in time 2. explain the consequences of insolvency 3. clarify the alternative courses of action available to the insolvent in the case of insolvency and the key features of different types of insolvency processes 4. immediately before our appointment, to obtain information about the Company and its business to assist with an orderly transition into liquidation following our appointment. In our opinion, these meetings and discussions do not affect our independence, as the advice was given to the Company and not to the directors personally. Further, the advice was restricted to the limitations imposed by Principle 2 of the Code of Professional Practice in relation to preappointment advice. Further, the advice provided is unlikely to be subject to review during the liquidation and would not impact on compliance with our statutory and fiduciary duties. It is for these reasons that the advice does not, in our opinion, give rise to a conflict of interest or duty. As noted, fees were paid to PPB Advisory for certain tasks, itemised above at 3, 4 and 5, in the amount of $4, plus GST. We have not provided other information or advice to the Company, its directors and advisors prior to our appointment, beyond that outlined in this Declaration of Independence, Relevant Relationships and Indemnities (DIRRI).

10 ii. Relevant relationships (excluding professional services to the insolvent) We, or a member of our firm, have, or have had within the preceding 24 months, a relationship with: National Australia Bank Limited (NAB) (secured creditor) Nature of relationship NAB holds security interests over the Company s property. We have a professional relationship with NAB and with a number of its staff, particularly in the credit and workout areas. We have previously undertaken formal and informal assignments on behalf of NAB for a number of years. Reasons why no conflict of interest or duty We believe that this relationship does not result in a conflict of interest or duty because our previous relationships with NAB were not in relation to the Company s and/or the directors affairs, or related parties of the Company and/or the directors. Deputy Commissioner of Taxation (unsecured creditor) Nature of relationship Various Practitioners within PPB Advisory are regularly requested to provide their consent to act as liquidators and bankruptcy trustees in matters where the Deputy Commissioner of Taxation is the principal creditor. Reasons why no conflict of interest or duty We believe that these relationships do not result in a conflict of interest or duty. Our previous relationships with the Deputy Commissioner of Taxation have not been in relation to the Company s affairs or the Company s directors or related parties of the Company. iii. Prior professional services to the insolvent Neither we, nor our firm, have provided any professional services to the Company in the previous 24 months. iv. No other relevant relationships to disclose There are no other known relevant relationships, including personal, business and professional relationships, from the previous 24 months with the Company, an associate of the Company, a former insolvency practitioner appointed to the Company or any person or entity that has security over the whole or substantially the whole of the Company s property that should be disclosed. C. Indemnities and up-front payments We have not been indemnified in relation to this administration, other than any indemnities that we may be entitled to under statute. We have not received any upfront payments in respect of our remuneration or disbursements. This does not include statutory indemnities. We have not received any other indemnities or upfront payments that should be disclosed.

11 Dated this 13th day of December 2017 Melissa Humann Liquidator Simon Theobald Liquidator Note: 1. If circumstances change, or new information is identified, we are required under the Corporations Act 2001 and the Australian Restructuring Insolvency & Turnaround Association (ARITA) Code of Professional Practice to update this Declaration and provide a copy to creditors with our next communication as well as table a copy of any replacement declaration at the next meeting of the insolvent s creditors. 2. Any relationships, indemnities or up-front payments disclosed in the DIRRI must not be such that the Practitioner is no longer independent. The purpose of components B and C of the DIRRI is to disclose relationships that, while they do not result in the Practitioner having a conflict of interest or duty, ensure that creditors are aware of those relationships and understand why the Practitioner nevertheless remains independent.

12 Schedule A related entities of PPB Advisory All Australian incorporated related entities of PPB Advisory PPB Pty Limited, Australia Subsidiaries PPB Advisory Agribusiness Management Pty Ltd, Australia PPB Advisory Funds Management Holding Pty Limited, Australia PPB Corporate Finance Pty Limited, Australia PPB Corporate Services Pty Ltd, Australia PPB NZ Holdings Pty Limited, Australia PPB Advisory Funds Management Limited, Australia PPB Property Administration Pty Ltd, Australia PPB Property Pty Limited, Australia PPB Real Estate Pty Ltd, Australia PPB NZ Limited As Nominee For PPB NZ Partnership PPB NZ Property Limited PPB NZ Equity Limited Tiago Advisory Pty Limited, Australia A.C.N Pty Limited, Australia PPB Funding Pty Ltd, Australia Litmus Group entities which merged with PPB Advisory as of 1 March 2016 LITMUS Group Pte Limited, Singapore TRUE North Advantage Pte Limited, Singapore

13 B. Summary of Report as to Affairs Below is a summary of the Report as to Affairs submitted by the Company s directors. The reports submitted by each director are identical. Book value Estimated Value $ 000 $ 000 Assets: Interest in land - - Sundry debtors 294, ,198 Cash on hand Cash at bank 7,577 7,577 Stock - - Work in progress 81,415 40,000 Plant and equipment 201,253 29,700 Other - - Total known assets 584, ,792 Liabilities Secured creditors (33,722) (33,722) Employee entitlements (540,806) (540,806) Unpaid superannuation (37,813) (37,813) ATO (45,334) (45,334) Trade and other creditors (546,112) (546,112) Related party creditors - - Total known liabilities (1,203,787) (1,203,787) Deficiency (subject to costs of liquidation) Contingent assets (619,124) - (835,995) - Contingent liabilities (113,625) (113,625) Deficiency (subject to costs of liquidation) (732,749) (949,620) 8

14 C. List of creditors 9

15 Address Amount ($) Secured creditors National Australia Bank Limited Level 1, 1238 Hay Street, West Perth WA 6005 (12,278.00) Total secured creditors (12,278.00) Employee creditors BECKETT, Chantelle Lynn Withheld TBC CASELLA, Brooke Withheld TBC CHANDLER, Brett Withheld TBC COPPINS, David Jonathon Withheld TBC DE BLANK, Ann Withheld TBC GUJ, Elisabetta Withheld TBC HART, Ian Withheld TBC IERACI, Nicole Elizabeth Withheld TBC PERRY, Christopher Steven Withheld TBC PUJIANTO, Eka Withheld TBC RAMSAY, Robert Withheld TBC ROGERSON, Andrew Withheld TBC RUSSELL, Glenn Withheld TBC SKEFFINGTON, Su-Yin Withheld TBC STEED, Paul Withheld TBC THWIN, Charles Withheld TBC WALKER, Douglas Ryan Withheld TBC WELTEN, Jason Peter Withheld TBC Total employee creditors TBC Unsecured creditors 360 Environmental 10 Bermondsey St West Leederville WA 6007 Australia 2, Australian Taxation Office GPO Box 9990 Perth WA 6000 Australia 45, Best Consultants 575 Newcastle St West Perth WA 6005 Australia 1, BG&E Pty Ltd 484 Murray St Perth WA 6000 Australia 4, Bushfire Prone Planning 1/42 Victoria St Midland WA 6056 Australia CABCHARGE AUSTRALIA LIMITED PO Box 700 Paddington NSW Commander PO Box 631 Collin St West Melbourne VIC 3000 Australia DC WEST Level Pier Street WA , Forth Consulting Pty Ltd 2 Clive St West Perth WA 6005 Australia 3, Fuji Xerox 8 Khartoum Road Macquarie Park NSW 2113 Australia 4, Glenn Russell Family Trust Withheld 72, Lease Equity Pty Ltd I1/604 Hay St Perth WA 6000 Australia 34, Link Engineering Consultants 1327 Hay Sst West Perth WA 6005 Australia 10, Mercury Messengers PO Box 400 West Perth WA MYOB PO Box 371 Blackburn VIC Office of State Revenue GPO Box T160 Perth WA , PG & KR Steed Family Trust Withheld 72, Pritchard Francis 430 Roberts Rd Subiaco WA 6008 Australia 1, RPS Perth Troode St West Perth WA 6005 Australia 5, Scott McConn Withheld 87, Thomson Family Trust Withheld 72, TIMG PO Box 21 Enfield NSW 2136 Australia 1, Transcore Pty Ltd 61 York St Subiaco WA 6008 Australia 7, Vocus PO Box 2014 North Sydney NSW 2060 Australia - Walker-Hart Family Trust Withheld 72, Will Thomson Withheld 89, Total unsecured creditors 591, PPB Confidential 18/12/2017 Page 1

16 D. Information sheet - creditors rights in liquidations 10

17 Creditor Rights in Liquidations 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 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. Right to request information 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. 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. ARITA ACN Level 5, 191 Clarence Street, Sydney NSW 2000 Australia GPO Box 4340, Sydney NSW 2001 t e admin@arita.com.au arita.com.au AUSTRALIAN RESTRUCTURING INSOLVENCY & TURNAROUND ASSOCIATION

18 Right to give directions to liquidator 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. Right to appoint a reviewing 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. Right to replace liquidator 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 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 Version: July (LIQ) - INFO - CREDITOR RIGHTS INFORMATION SHEET V1_0 AUSTRALIAN RESTRUCTURING INSOLVENCY & TURNAROUND ASSOCIATION PAGE 2

19 E. Initial Remuneration Notice 11

20 Initial Remuneration Notice Jones Coulter Young Pty Ltd (In Liquidation) atf JCY Unit Trust ACN (the Company) trading as JCY Architects and Urban Designers ABN The purpose of the Initial Remuneration Notice is to provide you with information about how we propose our remuneration for undertaking the Liquidators will be set. Remuneration method There are four basic methods that can be used to calculate the remuneration charged by an insolvency practitioner. They are: 1. 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. 2. 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. 3. Percentage The total fee charged is based on a percentage of a particular variable, such as the gross proceeds of assets realisations. 4. 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 as Liquidators be calculated on Hourly Rates. This is because: it ensures that creditors are only charged for work that is performed as Liquidators, we are required to perform a number of tasks which do not necessarily relate to the realisation of assets, for example responding to creditor enquiries, reporting to ASIC and conducting investigations generally, it is difficult to estimate with accuracy the total amount of fees necessary to complete all tasks required in the administration and our firm 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 Explanation of Hourly Rates The hourly rates charged by PPB Advisory applicable to this administration are set out within this Initial Remuneration Notice, together with a general guide showing the qualifications and experience of staff engaged in the administration. The hourly rates charged encompass the total cost of providing professional services and are not comparable to an hourly wage. Approval and payment of Remuneration Remuneration is approved by a resolution of the creditors, a creditors committee or a court.

21 Future remuneration is approved subject to a maximum or cap. Sometimes the actual cost of the administration will exceed the maximum which has been approved, in which case, we may seek another resolution for additional remuneration. We will not pay any amount exceeding the maximum without this approval. Where funds are available, we will usually pay approved remuneration at intervals not less than one month. Where funds are not available, remuneration will not be paid. Estimate of remuneration We estimate that the liquidation will cost approximately $79,782 (exclusive of GST) to complete. Approved remuneration may exceed the amount of this payment/indemnity and can be paid from the assets of the Liquidators after approval by creditors of 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, although some expenses 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. We must be satisfied that these disbursements are appropriate, justified and reasonable. We are required to obtain creditor approval for the payment of internal disbursements where there is a profit or advantage prior to these disbursements being paid from the administration. Details of the basis of recovering disbursements in this administration are provided below. Full details of any actual costs incurred will be provided with future reporting. Basis of disbursement claim Disbursements Externally provided professional services eg legal fees, valuation fees Externally provided non-professional service eg courier, Searches, advertising Rate (Excl GST) At cost At cost Internal disbursements * Photocopy/Printing Postage Scans Black and white Colour A3 Black and white A3 Colour $0.10 per page $0.50 per page $0.20 per page $0.60 per page At cost $0.05 per page Staff vehicle use Rates applicable as at 1 January 2017 At prescribed ATO rates * approval to be sought by creditors prior to payment

22 Statement of remuneration policy Insolvency Practitioners, in common with many professions, have traditionally charged for work done on the basis of hourly rates. PPB Advisory supports the Code of Professional Practice for Insolvency Practitioners. In all matters undertaken by us we seek to charge an appropriate level of fees and expenses. They should be appropriate for us having regard to the complexity and demands of each assignment, and appropriate for our clients having regard to their objectives in seeking our assistance. Accordingly, at all times when seeking approval for remuneration we will provide the following details: type of work undertaken by the Appointees and the firm s staff breakdown of the activity undertaken number of hours charged by each person hourly rate charged for each person total remuneration claimed basis of recovering disbursements. A schedule detailing our rates to apply to administrations for the period commencing 1 December 2016 is set out below, together with general details of Staff Classifications. General rates Position Rate per hour ($) (excl. GST) Partner 620 Director 560 Senior Manager 490 Manager 445 Assistant Manager 385 Senior Consultant 315 Consultant 265 Analyst 210 Administration 150

23 PPB Advisory Classifications Position Partner/Appointee Director Senior Manager Manager Assistant Manager Senior Consultant Consultant Analyst Administration Guide to level of experience and qualifications Registered Liquidator, Official Liquidator and/or Trustee, bringing his or her specialist skills to the administration. Generally, more than eight years experience, with at least four years at manager level. Extensive technical knowledge and capable of controlling all aspects of an administration. Reports directly to Partner. May be qualified to accept appointments in his/her own right. Generally, more than six years experience and two years at manager level. Broad technical knowledge and capable of managing medium to large assignments. Four to seven years experience. Well-developed technical and commercial skills. Capable of managing medium client assignments and parts of larger client files. Supervises a team. Three to six years experience. Capable of managing minor administrations and assists with planning and management of medium to large assignments. Supervises a team. Two to four years experience. Completion of CA Program (or equivalent) during this period. Assists planning and manages small to medium assignments as well as performing some of the more difficult work on larger jobs. Graduate with one to two years experience. Assists with day to day tasks under supervision. Undergraduate or graduate with up to one years experience. Assists with day to day administration tasks under supervision. Appropriate skills and experience to assist with general administration tasks including document management, accounts and statutory processing. The above is taken as a general guide only. From time to time, there may be persons employed who, because of their skills and experience, are employed in positions where they may not necessarily meet all of the above qualifications

24 F. Notice of meeting, proxy and proof of debt forms 12

25 Insolvency Practice Rules Corporations Act 2001 Jones Coulter Young Pty Ltd (In Liquidation) atf JCY Unit Trust ACN (the Company) trading as JCY Architects and Urban Designers ABN Notice is given that a meeting of the creditors of the Company will be held at Level 21, 140 St Georges Terrace, Perth WA on 2 February 2018 at 10:30 am. The Company convened a meeting of its members on 4 December 2017 at which it was resolved that we be appointed as Liquidators. AGENDA 1. Appointment of a Chairperson. 2. To receive the Declaration of Independence, Relevant Relationships and Indemnities from the Liquidators. 3. To fix the remuneration of the Liquidators. 4. To fix or determine the future remuneration of the Liquidators. 5. To fix or determine the future disbursements of the Liquidators. 6. To consider the appointment of a Committee of Inspection and where desired, appoint members to that Committee. 7. To consider the early destruction of books and records. 8. Any other business. Creditors wishing to attend are advised that proof of debts and proxies must be submitted to the Liquidators by 4:00 pm on Thursday 1 February Dated this 18th day of December 2017 Melissa Humann and Simon Theobald Liquidators

26 FORM 532 Corporations Act 2001 APPOINTMENT OF PROXY Jones Coulter Young Pty Ltd (In Liquidation) atf JCY Unit Trust ACN (the Company) trading as JCY Architects and Urban Designers ABN Insolvency Practice Rules A. Appointment of a proxy I/We,.. (If a company, strike out I and set out full name of the company) of (address) a creditor of the Company appoint as my/our proxy, or in his/her absence, to vote at the meeting of creditors to be held on Friday 2 February 2018 at Level 21, 140 St Georges Terrace, Perth WA 6000 at 10.30am or at any adjournment of that meeting. B. Voting directions Option 1: and/or Option 2: If appointed as a general proxy, as he/she determines on my/our behalf (Please proceed to section C, ie do not complete the table below) If appointed as a special proxy in the manner set out below: (Please complete the table below before proceeding to section C) No Resolution For Against Abstain To approve the Liquidators remuneration for the period 4 December 2017 to 15 December 2017 of $38, plus GST, as set out in the Remuneration Approval Report dated 18 December To approve the Liquidators remuneration for the period 16 December 2017 to the conclusion of the liquidation up to a maximum of $40, plus GST, as set out in the Remuneration Approval Report dated 18 December To approve the Liquidators disbursements for the period 4 December 2017 to 15 December 2017 of $34.30 plus GST as set out in the Remuneration Approval Report dated 18 December To approve the Liquidators disbursements for the period 16 December 2017 to the conclusion of the liquidation of $ plus GST as set out in the Remuneration Approval Report dated 18 December To approve early destruction of the Company s books and records six months after finalisation subject to authorisation from ASIC. To authorise the Liquidators to compromise debts greater than $100,000, pursuant to section 477(2A) of the Corporations Act To authorise the Liquidators to enter into contracts with a duration of longer than three months, pursuant to section 477(2B) of the Corporations Act 2001.

27 C. Signature (in accordance with Sections 127 or 250D of the Corporations Act 2001) If the creditor is an individual If the creditor is a Company. Director/Company Secretary Dated this day of 20. Print name CERTIFICATE OF WITNESS Please Note: This certificate is to be completed only where the person giving the proxy is blind or incapable of writing. The signature of the creditor is not to be attested by the person nominated as proxy. I, of certify that the Above instrument appointing a proxy was completed by me in the presence of and at the request of the person appointing the proxy and read to him before he attached his signature or mark to the instrument. Signature of witness:

28 Complete all sections ACN: Subregulation (2) FORM 535 Corporations Act 2001 FORMAL PROOF OF DEBT OR CLAIM (GENERAL FORM) To the Liquidators of Jones Coulter Young Pty Ltd (In Liquidation) t/as JCY Architects and Urban Designers atf JCY Unit Trust (the Company). 1. This is to state that the Company was on 4 December 2017, and still is, justly and truly indebted to...(creditor) (name of creditor) of... (address of creditor) for $..... Particulars of the debt are: Date Consideration Amount ($) Remarks (date when the debt arose) (state how debt arose and attach supporting documentation) (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 satisfaction or security for the sum or any part of it except for the following (insert particulars of all securities held. If the securities are on the property of the company, assess the value of those securities. If any bills or other negotiable securities are held, show them in a schedule in the following form). Date Drawer Acceptor Amount ($c) Due Date *3A. 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, remains unpaid and unsatisfied. *3B. I am the creditor's agent authorised in writing to make this statement in writing. I know that the debt was incurred for the consideration stated and that the debt, to the best of my knowledge and belief, remains unpaid and unsatisfied. * Items 3A & 3B - delete both 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. I have attached the following documents (tick as many as appropriate): Invoices Judgement from Court Letters of demand Orders from Company Monthly statements Statutory demand Credit application Guarantee from Company Creditors authority letter Other documents Dated /../. Name... Signatory.. Phone.. address... Office use only for voting purposes Accept Reject

29 G. Remuneration approval report 13

30 Remuneration Approval report Jones Coulter Young Pty Ltd (In Liquidation) (the Company) ACN Declaration 2. Executive summary 3. Remuneration 4. Disbursements 5. Summary of receipts and payments 6. Queries

31 This remuneration approval report provides you with the information you need to be able to make an informed decision regarding the approval of our remuneration. You should read this report and the other documentation that we have sent you and then attend the meeting of creditors in order to voice your opinion by casting your vote on the resolutions put to the meeting. The meeting will also give you an opportunity to ask any questions that you may have. Alternatively, you are also able to appoint a representative to attend on your behalf by lodging a proxy form. Lodging a specific proxy form allows you to specify how your proxy must vote. Lodging a general proxy form allows your representative to choose how your vote is exercised. Information about the meeting of creditors is provided at Section 7 of the Initial Notification to creditors. 1. Declaration We, Melissa Humann and Simon Theobald of PPB Advisory, have undertaken a proper assessment of this remuneration claim for our appointment as joint and several Liquidators of Jones Coulter Young Pty Ltd in accordance with the law and applicable professional standards. We are satisfied that the remuneration claimed is in respect of necessary work, properly performed, or to be properly performed, in the conduct of the administration. Dated this 18th day of December 2017 Melissa Humann and Simon Theobald Liquidators Jones Coulter Young Pty Ltd 2. Executive summary To date, no remuneration has been approved and paid on this administration. Remuneration currently claimed is summarised below: Period Resolution 1: To approve the Liquidators remuneration for the period 4 December 2017 to 15 December 2017 of $38, plus GST, as set out in the Remuneration Approval Report dated 18 December 2017 Resolution 2: To approve the Liquidators remuneration for the period 16 December 2017 to the conclusion of the liquidation up to a maximum of $40, plus GST, as set out in the Remuneration Approval Report dated 18 December 2017 Report Reference Amount (ex GST) 3.1 $38, $40, * Approval for the future remuneration sought is based on an estimate of the work necessary to the completion of the administration. Should additional work be necessary beyond what is contemplated, further approval may be sought from creditors. Page 2

32 The total remuneration for this appointment is estimated to be $79, Internal disbursements currently claimed is summarised below Period Report Reference Amount (ex GST) Resolution 3: To approve the Liquidators disbursements for the period $34.30 December 2017 to 15 December 2017 of $34.30 plus GST as set out in the Remuneration Approval Report dated 18 December Resolution 4: To approve the Liquidators disbursements for the period 16 December 2017 to the conclusion of the liquidation of $ plus GST as set out in the Remuneration Approval Report dated 18 December $ * Approval for the future internal disbursements sought is based on an estimate of the internal disbursements necessary to the completion of the administration. Should additional work be necessary beyond what is contemplated, further approval may be sought from creditors. Please refer to report section references detailed in the above table for full details of the calculation and composition of the remuneration approval sought. 3. Remuneration 3.1 Remuneration claim resolutions We will be seeking approval of the following resolutions to approve our remuneration. Details to support these resolutions are included in section 3.2 and attached schedules. Resolution 1 To approve the Liquidators remuneration for the period 4 December 2017 to 15 December 2017 of $38, plus GST, as set out in the Remuneration Approval Report dated 18 December Resolution 2 To approve the Liquidators remuneration for the period 16 December 2017 to the conclusion of the liquidation up to a maximum of $40, plus GST, as set out in the Remuneration Approval Report dated 18 December Future remuneration is approved subject to a maximum or cap. Sometimes the actual cost of the administration will exceed the maximum which has been approved, in which case, we may seek another resolution for additional remuneration. We will not pay any amount exceeding the maximum without this approval. Where funds are available, we will usually pay approved remuneration at intervals not less than one month. Where funds are not available, remuneration will not be paid. 3.2 Details of remuneration The basis of calculating the remuneration claims are summarised in Schedules (i) and (ii) of Appendix 1. The details of the major tasks performed and the costs associated with each of those major tasks are contained in Schedules (i) and (ii) of Appendix Total remuneration reconciliation In preparing this remuneration approval report, we have made a best estimate of what we believe the Liquidation will cost to complete and do not anticipate that we will have to ask creditors to approve any further remuneration. However, should the Liquidation not proceed as expected, we will advise creditors and we may seek approval of further remuneration and provide details on why Page 3

33 the remuneration has changed. Matters that may affect the progress and the cost of the Liquidation, include: disputes that may arise from post appointment debtors or variation claims from preappointment work any change in law in respect of the treatment of employee entitlement claims when the insolvent is the trustee of a trust issues arising from the liquidators investigations into the affairs of the Company disputes arising from claims made by creditors if/when proving their debts for the purpose of a dividend. 3.4 Likely impact on dividends The Corporations Act 2001 (the Act) sets the order for payment of claims against the company and it provides for remuneration of the Liquidators to be paid in priority to other claims. This ensures that when there are sufficient funds, the Liquidators receive payment for the work done to recover assets, investigate the company s affairs, report to creditors and ASIC and distribute any available funds. Even if creditors approve our remuneration, this does not guarantee that we will be paid, as we are only paid if sufficient assets are recovered. Any dividend to creditors will also be impacted by the amount of assets that we are able to recover and the amount of creditor claims that are admitted to participate in any dividend, including any claims by priority creditors such as employees. The Act sets the order for payment of claims against the company and it provides for remuneration of the Liquidators to be paid in priority to other claims. This ensures that when there are sufficient funds, the Liquidators receive payment for the work done to recover assets, investigate the company s affairs, report to creditors and ASIC and distribute any available funds. Given: we are still trading the business the secured creditor s outstanding debt is to be finalised the employee entitlement position is to be finalised it is uncertain whether there will be a dividend available to priority or unsecured creditors. We provide an update on this at the creditors meeting to be held on 2 February Remuneration recovered from external sources The Liquidators have not received any funding from external sources for their remuneration. However, for work carried out in relation to the Fair Entitlements Guarantee scheme, we are entitled to receive funding which is capped in accordance with its fee model. 4. 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 Page 4

34 both variable and fixed costs. The recovery of these costs must be on a reasonable commercial basis. We have undertaken a proper assessment of disbursements claimed for the Company in accordance with the law and applicable professional standards. We are satisfied that the disbursements claimed are necessary and proper. We will be seeking creditor approval to pay our disbursements from creditors. Details to support these resolutions are included in section 4.1 and 4.2 below: Resolution 3 That the internal disbursements claimed by PPB Advisory for the period 4 December 2017 to 15 December 2017 calculated at the rates set out in the Remuneration Approval Report are approved for payment in the amount of $34.30 plus GST, to be drawn from available funds immediately or as funds become available. Resolution 4 That the internal disbursements claimed by PPB Advisory for the period 16 December 2017 to the conclusion of the liquidation calculated at the rates set out in the Remuneration Approval Report are approved for payment up to a maximum of $ plus GST, to be drawn from available funds immediately or as funds become available. 4.1 Internal disbursement claim Disbursements incurred by our firm are charged to the administration on the following basis: Internal Disbursements Rate (Excl GST) Advertising At cost * Courier At cost * Photocopy/Printing Black and white Colour A3 Black and white A3 Colour $0.10 per page $0.50 per page $0.20 per page $0.60 per page Postage At cost * Scans $0.05 per page Staff vehicle use At prescribed ATO rates * Rates applicable as at 1 January 2015 * These internal disbursements do not require approval to be paid as they are charged at cost Disbursements totalling $34.30 have been incurred for the period from 4 December 2017 to 15 December Approval of these disbursements from creditors is being sought at the meeting of creditors. 4.2 Future basis of internal disbursements (if required) Future disbursements incurred by our firm will be charged to the administration on the same basis as in 4.1 above. Approval of the payment of these disbursements at the above rates to a capped amount of $ is being sought from creditors at a meeting of creditors. Page 5

35 5. Summary of receipts and payments The summary of receipts and payments for the period from 4 December 2017 to 15 December 2017 is contained in Appendix Queries Please contact Caitlin Morrissey on or by at cmorrissey@ppbadvisory.com should you have any queries or require any further information. You can access additional information on the following websites: ARITA at ASIC at Page 6

36 Appendix 1 1. Calculations of remuneration schedules Page 1

37 Annexure 1 Schedule (i) Resolution 1: To approve the Liquidators remuneration for the period 4 December 2017 to 15 December 2017 Rate Total Total Assets Employees Creditors Investigation Trade-on Administration Employee Position (Ex GST) Hours $ Hrs $ Hrs $ Hrs $ Hrs $ Hrs $ Hrs $ MHUMANN Partner , , , AHARPER Senior Manager , , , , LBROWN Senior Manager LCLARKE Manager , , ACHISHOLM Senior Consultant DJAMES Senior Consultant CMORRISSEY Consultant , , , , ASTONEMAN Executive assistant SYOUNG Senior Bookkeeper ICRESTALE Senior Bookkeeper Total , , , , , , GST 3, Total (Including GST) Average rate (excluding GST) 42,

38 Annexure 1 Schedule (ii) Resolution 2: To approve the Liquidators remuneration for the period 16 December 2017 to the conclusion of the liquidation Rate Total Total Assets Employees Creditors Investigation Trade-on Administration Dividend Employee Position (Ex GST) Hours $ Hrs $ Hrs $ Hrs $ Hrs $ Hrs $ Hrs $ Hrs $ MHUMANN Partner , , AHARPER Senior Manager , , , , , LCLARKE Manager , , ACHISHOLM Senior Consultant DJAMES Senior Consultant CMORRISSEY Consultant , , , , , ASTONEMAN Executive assistant ICRESTALE Senior Bookkeeper Total , , , , , , , , GST 4, Total (Including GST) Average rate (excluding GST) 44,

39 Appendix 2 2. Tables of major tasks for remuneration Page 2

40 Schedule (i) Resolution 1 The below table provides a description of the work undertaken in each major task area for the period 4 December 2017 to 15 December 2017 Task Area General Description Includes Assets 10.6 hours $8, Creditors 9.6 hours $2, Employees 5.5 hours $2, Sale of business as a going concern Plant and equipment Debtors Leasing Creditor enquiries Retention of Title Claims Secured creditor reporting Creditor reports Meeting of creditors Employees enquiries FEG Calculation of entitlements Liaising with potential purchasers Discussions with the director regarding potential sale Liaising with valuers and interested parties Reviewing asset listing and valuation Correspondence with debtors Reviewing and assessing collectability of debtor ledger Liaising with employees and directors regarding collection of debtors Reviewing leasing documents Correspondence with legal advisors regarding lease Liaising with landlord Liaising with NAB regarding bank guarantees held in favour of the landlord Dealing with creditor enquiries via telephone Maintaining creditor enquiry files Reviewing and preparing correspondence to creditors and their representatives via and post Searching the PPSA register Notifying PPSA registered creditors of appointment Verbal updates to secured creditor Responding to secured creditor s queries Preparing initial notice to creditors Preparing meeting notices, proxies and advertisements Receive and follow up employee enquiries via telephone Maintain employee enquiry files Review and prepare correspondence to employees and via and post Preparation of letters to employees advising of their entitlements Correspondence with FEG Preparing notification spreadsheet Calculating employee entitlements Reviewing employee files and company s books and records Reconciling superannuation accounts Reviewing awards Liaising with solicitors regarding entitlements Page 3

41 Task Area General Description Includes Trade On 37.2 hours $16, Investigation 0.6 hours $ Administration 16.2 hours $8, Trade on management Processing receipts and payments Budgeting and financial reporting Conducting investigation Correspondence Document maintenance/file review/checklist Insurance Bank account administration Liaising with clients regarding ongoing projects Liaising with sub-consultants regarding ongoing works for clients Terminating employees Providing regular updates to directors and employees Attendance on site Monitoring trading performance Liaising with superannuation funds regarding contributions, termination of employees employment Preparing and reviewing employee wage payments Entering receipts and payments into accounting system Finalising trading profit or loss Meetings with management and staff to discuss trading position Collection of company books and records Liaising with company accountant regarding company records Arranging access to MYOB to review company financial records Reviewing company s books and records General correspondence with third parties Filing documents electronic and hard copy Updating checklists Liaising with insurance brokers regarding initial and ongoing cover required Cancelling keyman insurance policies Review and confirmation of adequacy of cover Identification of potential issues requiring attention of insurance specialists Reviewing insurance policies Liaising with director regarding professional indemnity insurance post appointment Preparing correspondence opening and closing accounts Requesting bank statements Bank account reconciliations Correspondence with bank regarding specific transfers ASIC Form 524 and other forms Preparing and lodging ASIC forms including 505, 524, 911 etc Correspondence with ASIC regarding statutory forms ATO and other statutory reporting Notification of appointment Planning / Review Books and records / storage Discussions regarding status of liquidation Preparing estimated outcome statement Dealing with records in storage Page 4

42 Resolution 2 Schedule (ii) The below table provides a description of the work anticipated in each major task area for the period 16 December 2017 to the completion of the liquidation. Task Area General Description Includes Assets 5.0 hours $2, Creditors 26.0 hours $11, Employees 15.0 hours $5, Plant and equipment Debtors Leasing Creditor enquiries Secured creditor reporting Creditor reports Dealing with proofs of debt Meeting of creditors Employees enquiries FEG Calculation of entitlements Liaising with valuers, auctioneers and interested parties Correspondence with debtors Reviewing and assessing collectability of debtor ledger Liaising with debt collectors and solicitors Liaising with the landlord Tasks associated with disclaiming lease Dealing with creditor enquiries via telephone Maintaining creditor enquiry files Reviewing and preparing correspondence to creditors and their representatives via facsimile, and post Regular verbal updates to secured creditor Responding to secured creditor s queries Preparing initial report to creditors, investigation, meeting and general reports to creditors Receipting and filing POD when not related to a dividend Corresponding with OSR and ATO regarding POD when not related to a dividend Preparation of meeting notices, proxies and advertisements Forward notice of meeting to all known creditors Preparation of meeting file, including agenda, certificate of postage, attendance register, list of creditors, reports to creditors, advertisement of meeting and draft minutes of meeting Conducting first meeting of creditors Preparation and lodgement of minutes of meetings with ASIC Responding to stakeholder queries and questions immediately following meeting Receive and follow up employee enquiries via telephone Maintain employee enquiry files Review and prepare correspondence to employees and their representatives via facsimile, and post Preparation of letters to employees advising of their entitlements Receive and prepare correspondence in response to employees objections to leave entitlements Correspondence with FEG Preparing notification spreadsheet Preparing FEG distributions Calculating employee entitlements Reviewing employee files and company s books and Page 5

43 Task Area General Description Includes Trade On 16.0 hours $7, Investigation 16.0 hours $ Dividend 17.0 hours $5, Trade on management Processing receipts and payments Budgeting and financial reporting Conducting investigation Litigation / Recoveries ASIC reporting Processing proofs of debt Dividend procedures records Reconciling superannuation accounts Reviewing awards Liaising with solicitors regarding entitlements Liaising with suppliers to finalise accounts Liaising with clients regarding transition of projects Liaising with management and staff Attendance on site Preparing and authorising receipt vouchers Preparing and authorising payment vouchers Liaising with superannuation funds regarding contributions, termination of employees employment Liaising with OSR regarding payroll tax issues Entering receipts and payments into accounting system Finalising trading profit or loss Meetings with management and staff to discuss trading position Collection of company books and records Reviewing company s books and records Review and preparation of company nature and history Conducting and summarising statutory searches Preparation of comparative financial statements Preparation of deficiency statement Review of specific transactions and liaising with directors regarding certain transactions Liaising with directors regarding certain transactions Investigations to identify indicators of insolvency and possible claims for insolvent trading Preparation of investigation file Preparation and lodgement of supplementary report if required Liaising with solicitors regarding recovery actions Attending to negotiations Attending to settlement matters Preparing statutory investigation reports Liaising with ASIC Preparation of correspondence to potential creditors inviting lodgement of POD Receipt of POD Maintain POD register Adjudicating POD Request further information from claimants regarding POD Preparation of correspondence to claimant advising outcome of adjudication Preparation of correspondence to creditors advising of intention to declare dividend Page 6

44 Task Area General Description Includes Administration 8.0 hours $2, Correspondence Document maintenance/file review/checklist Insurance Bank account administration Advertisement of intention to declare dividend Obtain clearance from ATO to allow distribution of company s assets Preparation of dividend calculation Preparation of correspondence to creditors announcing declaration of dividend Advertise announcement of dividend Preparation of distribution Preparation of dividend file Preparation of payment vouchers to pay dividend Preparation of correspondence to creditors enclosing payment of dividend General correspondence with third parties First month, then six-monthly administration review Filing documents electronic and hard copy File reviews Updating checklists Finalisation of liquidators insurance cover Identification of potential issues requiring attention of insurance specialists Correspondence with insurer regarding ongoing insurance requirements Preparing correspondence closing accounts Requesting bank statements Bank account reconciliations Correspondence with bank regarding specific transfers ASIC Form 524 and other forms Preparing and lodging ASIC forms including 524, 911 etc ATO and other statutory reporting Finalisation Planning / Review Books and records / storage Correspondence with ASIC regarding statutory forms Preparing BAS Completing group certificates Notifying ATO of finalisation Cancelling ABN / GST / PAYG registration Completing checklists Finalising WIP Discussions regarding status of administration Dealing with records in storage Sending job files to storage Page 7

45 Appendix 3 3. Summary of receipts and payments Receipts and payments for the period 4 December 2017 to 15 December 2017 $ Receipts Pre-appointment debtors 106, Other current assets 5, Total receipts 111, Payments Employee wages (gross) (16,082.77) Total payments (16,082.77) Total receipts / (payments) 95, Page 8