INITIAL REPORT TO CREDITORS Pursuant to s436e of the Corporations Act, 2001

Transcription

1 7 September 2017 INITIAL REPORT TO CREDITORS Pursuant to s436e of the Corporations Act, 2001 To the Creditor Addressed Dear Sir/Madam RIMFIRE CONSTRUCTIONS (QLD) PTY LTD (ADMINSTRATORS APPOINTED) ACN ( the Company ) This report to creditors is being sent to you because you are, or could be, a creditor of the Company, which has been placed into Voluntary Administration. As a creditor of the Company, you are entitled to receive information regarding your rights, the process of Voluntary Administration, and about the Company generally. In accordance with Section 600G(4) of the Corporations Act, 2001, you are hereby advised that you can access all notices and reports in respect to this administration electronically. Details relating to the way in which you can access the documents are provided below: Date of Appointment 7 September 2017 Type of Appointment Voluntary Administrators also known as External Administrators Creditor Website Voluntary Administration Ginette Muller & Marcus Watters Creditor Reports will be made available online at Case code: Unique Password: GMI First Meeting of Creditors 11.00am on Friday, 15 th September 2017 The Newstead Room Quest Breakfast Creek 15 Amy Street, Albion Qld 4010 Telephone Conference Facilities for the Meeting Telephone facilities will be available for the meeting. Please contact GM Insolvency for the number and the pin code. Contact at GM Insolvency Aleks Stojic (07) or aleks@gmadvisory.com.au GM Insolvency Pty Ltd ACN Postal Address GPO Box 2810, Brisbane QLD 4001 P. +61 (0) E. info@gmadvisory.com.au Liability limited by a scheme approved under Professional Standards Legislation.

2 RIMFIRE CONSTRUCTIONS (QLD) PTY LTD (ADMINSTRATORS APPOINTED) ACN ( the Company ) Marcus Watters and I were appointed as Voluntary Administrators of the Company on 7 September 2017, pursuant to Section 436A of the Corporations Act, The effect of the Voluntary Administration is to place a moratorium on the payment of unsecured creditors' accounts in relation to trading and other debts incurred up to the date of my appointment and until creditors make a decision about the Company s future. That decision will be made at a second meeting of creditors, to be held within 25 business days following the appointment of Voluntary Administrators. Creditors will receive notice of that meeting in due course. The Company operated a Construction business based in Queensland prior to our appointment. The Director, Mr Danny Cain has been requested to prepare a Report as to Affairs as at the date of my appointment; to provide books and records and information relating to the business of the Company. 1. First Meeting of Creditors Pursuant to Section 436E of the Corporations Act, I am required to hold a meeting of creditors within 8 business days following my appointment. The purpose of the meeting is to ratify our appointment as Administrators; to consider if another Administrator is to be appointed, and to consider the appointment of a Committee of Inspection to assist in the Voluntary Administration. Details of the meeting are as follows: Date: 15 September 2017 Time: 11:00am Venue: The Newstead Room, Quest Breakfast Creek, 15 Amy Street, Albion Qld 4010 With respect to the meeting, please find enclosed the following: a) Notice of First Meeting of Creditors; b) Appointment of Proxy; and c) Particulars of Debt or Claim Form. Telephone facilities will be available for creditors wishing to attend by telephone. Please contact GM Insolvency for the telephone number and pin code. Only creditors who are entitled to vote will be provided these details. In order to vote at the forthcoming meeting of creditors, you will need to complete the Particulars of Debt or Claim Form. In addition, a Proxy Form should be completed and returned to this office by creditors who are unable to attend personally. If the debt is owed to a company, that is a separate legal entity, the company will need to authorise a specific person to attend and vote at the meeting of creditors on the company s behalf. There are two types of Proxy appointments, namely:- a General Proxy, which enables the Proxy (who may be the Chairperson of the meeting) to vote however they see fit for the benefit of the Creditor; or a Specific Proxy, which directs the Proxy (who again may be the Chairperson) how to vote at the meeting. This is achieved by completing each of the tick boxes on the Proxy Form. If the debt is owed to a company, the Appointment of Proxy form must be completed. That is, as a separate legal entity, the company will need to authorise a specific person to attend and vote at the meeting of creditors on the company's behalf. The form must be completed if a sole trader or a partner is not able to attend the meeting. 2 P age RTC Initial Notification (gmadvisory )

3 RIMFIRE CONSTRUCTIONS (QLD) PTY LTD (ADMINSTRATORS APPOINTED) ACN ( the Company ) Resolutions are made by a simple majority in number unless two or more creditors request a poll. In the event of a poll, a majority in number and value is required. If this is not obtained, the chairperson has the casting vote. Pursuant to Regulation (4), a secured creditor is entitled to vote for the full amount of their debt without surrendering their security. 2. Initial Information on Creditors rights Please refer to Annexure A, but in summary, these rights include your entitlement to: Make reasonable requests for a meeting; Make reasonable requests for information; Give directions to us; Appoint a reviewing External Administrator; Replace the Voluntary Administrators. 3. Initial Remuneration Notice In accordance with Section of the Insolvency Practice Rules (Corporations) 2016 and Section of the Insolvency Practice Schedule (Corporations), please find attached as Annexure B, information relating to the method and manner that the Liquidator is seeking to be remunerated. 4. Declaration of Independence, Relevant Relationships and Indemnities (DIRRI) A copy of the Declaration of Independence, Relevant Relationships and Indemnities (DIRRI) relevant to this appointment is attached as Annexure C. The DIRRI assists you to understand any relevant relationships that the External Administrators may have, and any indemnities or upfront payments that have been provided to them or GM Insolvency. 5. Summary of ASIC Information Sheets If you require further information in relation to the process of Administration, please refer to Annexure D, which lists various ASIC Information Sheets that can be downloaded from the ASIC website. Yours faithfully Ginette Muller Voluntary Administrator 3 P age RTC Initial Notification (gmadvisory )

4 Subregulation 5.3A.03A and (6) Section 436E IPR (Corporations) 2016 Division 75 FORM 529A Corporations Act 2001 (Cth) NOTICE OF FIRST MEETING OF CREDITORS OF COMPANY UNDER ADMINISTRATION RIMFIRE CONSTRUCTIONS (QLD) PTY LTD (ADMINISTRATORS APPOINTED) ACN NOTICE IS HEREBY GIVEN that Ginette Muller and Marcus Watters of GM Insolvency, Level 27, 10 Eagle Street Brisbane, Queensland, were appointed Administrators of the above Company on 7 September 2017 pursuant to Section 436A of the Corporations Act 2001 (Cth). NOTICE IS ALSO GIVEN that the first meeting of creditors of the Company will be held on 15 September 2017 at The Newstead Room, Quest Breakfast Creek, 15 Amy Street, Albion Queensland commencing at 11AM. AGENDA 1. The purpose of the meeting is to determine: a) whether to appoint a Committee of Inspection; and b) if so, who are to be the Committee's members. 2. At the meeting, creditors may also, by resolution: a) remove the Administrators from office; and b) appoint someone else as Administrator(s) of the Company. Creditors wishing to vote at the meeting, who will not be attending in person or are a company, must complete and return a Proxy Form by no later than 4.00PM on the last business day prior to the meeting, by post to GM Insolvency, GPO Box 2810, Brisbane, QLD 4001 or by at info@gmadvisory.com.au. Dated this 7 th day of September 2017 Ginette Muller Administrator

5 Particulars of Debt or Claim Form RIMFIRE CONSTRUCTIONS (QLD) PTY LTD (ADMINISTRATORS APPOINTED) ACN Creditor Name ABN Postal Address Contact Amount of Claim $ (not including GST) Description of Debt or Claim Briefly detail the nature of the debt that is, what did the Creditor provide or how was the debt incurred. Details are not required if attached invoices clearly provide this information. If the debt is SECURED, please put a cross in the box marked SECURED Secured If the Creditor is related to the Company in Liquidation, please put a cross in the box marked RELATED Related SIGNATURE Name of Signatory: Return this Form to: GPO Box 2810, Brisbane, Qld to info@gmadvisory.com.au OR Date Notes: Under the Insolvency Practice Rules (Corporations) (IPR) 75-85, a creditor is not entitled to vote at a meeting unless: a his or her claim has been admitted, wholly or in part, by the External Administrator (EA); or b he or she has lodged with the EA particulars of the debt or claim, or if required, a formal proof of debt Debt/Claim Form

6 FORM 532 CORPORATIONS ACT 2001 Regulation APPOINTMENT OF PROXY CREDITORS MEETING RIMFIRE CONSTRUCTIONS (QLD) PTY LTD (ADMINISTRATORS APPOINTED) ACN *I/*We (1)... of... a creditor of Rimfire Constructions (Qld) Pty Ltd, appoint (2) or in his or her absence... as *my/our *general/special proxy to vote at the meeting of creditors to be held on Friday, 15 September 2017 at 11am, or at any adjournment of that meeting, and to vote: generally as he/she determines on my/our behalf or specifically in accordance with the following special instructions Resolution For Against Abstain (1) That a Committee of Inspection be appointed. (2) To remove the Administrators from office and appoint someone else as Administrators. (3) DATED this day of Signature of individual or persons acting for corporation to appoint proxy Proxy forms should have been completed and returned by no later than 12 noon on 14 September 2017 to be eligible to vote at the meeting. Return To: RIMFIRE CONSTRUCTIONS (QLD) PTY LTD (ADMINISTRATORS APPOINTED) Care of: GM INSOLVENCY Address: GPO Box 2810, BRISBANE QLD 4001 Phone: (07) info@gmadvisory.com.au Proxy Page 1

7 CERTIFICATE OF WITNESS This certificate is to be completed only if the person giving the proxy is blind or incapable of writing. The signature of the creditor, contributory, debenture holder or member must not be witnessed 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 or her before he or she signed or marked the instrument. Dated: Signature of Witness: Description: Place of Residence: Instructions for completing Proxy Form * Strike out if inapplicable (1) If a firm, strike out "I" and set out the full name of the firm. (2) Insert the name, address and description of the person appointed. (3) If a special proxy add the words "to vote for" or the words "to vote against" and specify the particular resolution. (4) The signature of creditor, contributory, debenture holder or member is not to be attested by the person nominated as proxy. (5) Corporations Act 2001, Sections 127 and 250D. (6) The method of affixing the common seal should be prescribed by the creditor corporation s articles Proxy Page 2

8 Annexure A CREDITOR RIGHTS VOLUNTARY ADMINISTRATION Appointment of an External Administrator You have the right to be advised that the company has been placed into Voluntary Administration. You must be notified of your rights at the same time as that you are notified of the holding of a meeting of creditors, referred to in Section 436E of the Corporations Act, 2001, as a First Meeting of Creditors. Right to Request a Meeting Creditors have the right to request in writing that the Voluntary Administrator or as they are also known, External Administrator, hold a meeting of creditors. Requests may be made by: o o o o Creditors holding greater than 10% but less than 25% of the known value of creditors, conditional upon the creditors providing security for the costs of the meeting; or Creditors holding greater than 25% of the known value of creditors; or Creditors through a resolution; or Committee of Inspection (a small group of creditors elected by all creditors to represent all creditors). Unless it is unreasonable to comply with the direction, the Voluntary Administrator must convene a meeting as soon as reasonably practicable. If the request is not reasonable, the liquidator must inform the creditor(s) and provide reason(s) why. Unreasonable requests * are explained on the next page. Right to Request Information A Creditor can request an External Administrator to give them information, a report or produce a document. The External Administrator must comply with the request within 5 business days. Refer to IPS Section for further details. Unreasonable requests * are explained on the next page. Creditor Rights in Summary Right to know that an External Administrator has been appointed. Right to request the External Administrator call a meeting. Right to request Information. Right to give directions to the External Administrator. Right to appoint a reviewing liquidator. Right to remove and replace the External Administrator. Further Reading ASIC Creditor Rights & Information Insolvency Practice Rules (Corporations) 2016 (IPR) Section Insolvency Practice Schedule (Corporations) (IPS) Section Corporations Act 2001 Section 436E. Creditor Rights is produced as a general guide only. This does not represent legal advice and/or financial advice and does not replace the need to seek specialist advice as required. GM Insolvency Pty Ltd ACN Postal Address GPO Box 2810, Brisbane QLD 4001 P. +61 (0) E. info@gmadvisory.com.au Liability limited by a scheme approved under Professional Standards Legislation.

9 CREDITOR RIGHTS VOLUNTARY ADMINISTRATION Right to give directions to the Voluntary Administrator Creditors may give directions to a Voluntary Administrator in relation to the Voluntary Administration by way of a resolution. A Voluntary Administrator is not required to comply with the direction but must have regard to it. If a Voluntary Administrator does not comply, they must document their reasons for not complying with the direction given. Refer to IPS Section 85-5 for additional information including what happens when there is a conflict between directions given by the Creditors and the Committee of Inspection. Right to Appoint a Reviewing Liquidator Creditors may appoint a reviewing liquidator to carry out a review into the following matters:- Remuneration of the external administrator of the company; or A cost or expense incurred by the external administrator of the company. The appointment is made by way of a resolution of creditors, or if the external administrator provides consent, by a creditor. Refer to IPS Section for details on costs of reviewing the Liquidator. Right to replace a Voluntary Administrator A Voluntary Administrator may be removed and replaced by a resolution of creditors at the first creditors meeting or they can: 1. Request a meeting a. A meeting must be reasonably requested by the required number of creditors; and b. The Voluntary Administrator must be informed by the creditors of the purpose of the request for the meeting; and c. Information and notice - Creditors must decide upon the new Voluntary Administrator and obtain a Consent to Act and a Declaration of Independence, Relevance and Relationships and Indemnities (DIRRI); and 2. The existing Voluntary Administrator must include this information in the notice of the meeting sent to all creditors. Refer to IPS Section for further details. Unreasonable Requests Relating to meetings & information A request or direction is not reasonable if: Complying would substantially prejudice the interests of one or more creditors or a third party & that prejudice outweighs the benefits of complying [IPR 70-15(2)(a)] and [IPR (2)(a)]; or There is not sufficient available property to comply; or It is vexatious. Relating to requests for meetings A direction is not reasonable if: A meeting of creditors dealing with the same matters has been held or is due to be held within 15 business days after the direction is made [ IPR (2)(c)]. Relating to requests for information A request is not reasonable if: The information would be privileged from production in legal proceedings; An action for breach of confidence will arise from the disclosure; The information, report or document has already been provided or is required to be provided under the Corporations Legislation within 20 business days of the request being made [IPR 70-15(2)(f)]. Creditor Rights is produced as a general guide only. This does not represent legal advice and/or financial advice and does not replace the need to seek specialist advice as required. GM Insolvency Pty Ltd ACN Postal Address GPO Box 2810, Brisbane QLD 4001 P. +61 (0) E. info@gmadvisory.com.au Liability limited by a scheme approved under Professional Standards Legislation.

10 ANNEXURE B Remuneration Report RIMFIRE CONSTRUCTIONS (QLD) PTY LTD (ADMINISTRATORS APPOINTED) ACN This report has been prepared in accordance with the Insolvency Practice Rules (Corporations) 2016 ( IPR ) and the Insolvency Practice Schedule (Corporations) 2016 ( IPS ) & the Corporations Act 2001 ( The Act ). This report sets out how the Administrator, hereby known and referred to as an External Administrator ( EA ) proposes to be remunerated. Table of Contents 1) Remuneration Methods 2) Method chosen 3) Explanation of hourly rates 4) Staff Likely to Assist 5) Estimated remuneration 6) Disbursements 1. Remuneration Methods The most common method used to calculate the remuneration charged by an insolvency practitioner is Time based / hourly rates. This is where 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. Other Methods can include Fixed Fee The total fee charged is normally quoted at the commencement of the administration and is the total cost for the Administration. Sometimes an EA will finalise an Administration for a fixed fee. Percentage The total fee charged is based on a percentage of a particular variable, such as the gross proceeds of assets realisations. Contingency The EA s fee is structured to be contingent on a particular outcome being achieved. 2. Method chosen Given the nature of this Administration, it is proposed that the remuneration of the EA and their staff, be calculated based on hourly rates. This is because: It ensures that creditors are only charged for work that is performed. 1 Page ILRA1 Remuneration Report (Annexure E) (gmadvisory )

11 RIMFIRE CONSTRUCTIONS (QLD) PTY LTD (ADMINISTRATORS APPOINTED) The EA is required to perform a number of tasks which do not relate to the realisation of assets, for example responding to creditor enquiries, reporting to ASIC, distributing funds in accordance with the provisions of the IPS, IPR or the Act. The EA is unable to estimate with certainty the total amount of fees necessary to complete all tasks required in the Administration. The EA has a time recording system that is able to produce a detailed analysis of time spent on each type of task by each individual staff member utilised in the Administration; Time based remuneration calculates fees upon a basis of time spent at the level appropriate to the work performed; the method provides full accountability in the method of calculation 3. Explanation of Hourly Rates The rates for remuneration calculations are set out in the following table together with a general guide showing the qualifications and experience of staff engaged in the Administration and the role they take in the Administration. The hourly rates charged encompass the total cost of providing professional services and should not be compared to an hourly wage. Classification Description Hourly rate $ / hour (Excl. GST) Director Registered/Official Liquidator and/or Trustee, with specialist skills and extensive experience in all forms of insolvency administrations. Alternatively, has leadership experience in business or industry, bringing specialist expertise and knowledge to the Administration. 490 Associate Director I Associate Director II Manager I Manager II Extensive experience in managing large, complex engagements at a very senior level over many years. Can deputise for the appointee, where required. May also be a Registered/Official Liquidator and/or Trustee or have experience sufficient to support an application to become registered. Has significant experience in managing engagements at a senior level over many years. Can deputise for the appointee, where required. Has experience in complex matters and assists planning and control of medium to larger administrations. Has significant senior management experience in business or industry, with specialist skills and/or qualifications. Well-developed technical and commercial skills. Has experience in complex matters and has conduct of small P age ILRA1 Remuneration Report (Annexure E) (gmadvisory )

12 RIMFIRE CONSTRUCTIONS (QLD) PTY LTD (ADMINISTRATORS APPOINTED) to medium administrations, supervising a small team of professionals. Will typically be a member of one of the Professional Accounting bodies and may hold a Practising Certificate. Snr Accountant I Snr Accountant II Senior Administration Junior Administration Qualified accountant with several years of experience. Required to assist with day-to-day tasks under the supervision of senior staff. Typically a University (or other similar tertiary institution) degree qualified accountant. Required to assist with dayto-day tasks under the supervision of senior staff. Undergraduate in the latter stage of their university degree., or experienced para-professional in insolvency practice. Has appropriate skills and experience to support professional staff in an administrative capacity, or is an undergraduate with limited work experience Rates are subject to review at 1 July each year. 4. Estimated Remuneration IPR Section requires an EA to estimate of the expected amount of remuneration for the Administration. It is estimated that this Administration will cost approximately $90,000 (plus GST) to complete, subject to the following variables which may have a significant effect on this estimate and that I am unable to determine until I have commenced the administration: The full scope and extent of necessary work (from experience, unforeseen matters typically arise and may require us to perform additional work beyond that currently anticipated; and The extent of business operations continuing after appointment. Prior to the EA s appointment, a remuneration estimate of $90,000 (plus GST) was provided to the director. 5. Disbursements (IPS 60-20) Disbursements are divided into three types: 1. Externally provided professional services - these are recovered at cost. An example of an externally provided professional service disbursement is legal fees. 2. Externally provided non-professional costs such as travel, accommodation, and search fees - these are recovered at cost. 3. Internal disbursements such as postage, some advertising and search fees would generally be charged at cost by simply reimbursing the Liquidator for their expenditure on these items. However, there are some internal expenses such as telephone calls, photocopying and printing which may be charged at a rate which 3 P age ILRA1 Remuneration Report (Annexure E) (gmadvisory )

13 RIMFIRE CONSTRUCTIONS (QLD) PTY LTD (ADMINISTRATORS APPOINTED) recoups both variable and fixed costs. The recovery of these costs must be on a reasonable commercial basis, as outlined in the accompanying table. No disbursements have been paid to date. Future disbursements provided by GM Insolvency are to be charged to the External Administration as per the GM Insolvency Schedule of Internal Disbursements 2017 listed in the table below. The Voluntary Administrators will not pay internal disbursements unless creditors provide approval by way of a resolution. Internal disbursements Staff Costs for attending off-site meetings. Printing for investigations, working papers, filing, stationery items, receipts & payments but not reports to creditors. Computer Data Management & Storage. Meeting Room Costs. Reports to Creditors Printing of, including ready for postage and delivery. Rate (Excl GST) Applies the Australian Taxation Office rates advised in relation to mileage and per diem rates if staff are required to attend away from the office (mileage for 2017 is set at $0.66 per kilometre). Is set at 2% of Insolvency fees. For a $10,000 engagement, this would be $200. $45 per month (cloud storage, hardware, and specialized software). At cost if held externally or if our shared tenancy Boardroom is available, set at our contribution rate of $50 per hour (in blocks of one hour). At $0.50 per page. Telephone Calls. Is set at 1% of Insolvency fees. For a $10,000 engagement, this would be $ P age ILRA1 Remuneration Report (Annexure E) (gmadvisory )

14 ANNEXURE C CORPORATIONS ACT 2001 Section 436DA Declaration of Independence, Relevant Relationships and Indemnities RIMFIRE CONSTRUCTIONS (QLD) PTY LTD (ADMINISTRATORS APPOINTED) ACN This document requires the Practitioner/s appointed to an insolvent entity to make declarations as to: A. their independence generally; B. relationships, including i the circumstances of the appointment; ii any relationships with the Rimfire Constructions (Qld) Pty Ltd and others within the previous 24 months; iii any prior professional services for the Rimfire Constructions (Qld) Pty Ltd within the previous 24 months; iv 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 myself, my partners, GM Insolvency Pty Ltd and associated entities. A. Independence We, Ginette Muller and Marcus Watters, of GM Insolvency Pty Ltd have undertaken a proper assessment of the risks to our independence prior to accepting the appointment as Administrators of Rimfire Constructions (Qld) Pty Ltd 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 reasons that would prevent us from accepting this appointment. B. Declaration of Relationships i Circumstances of appointment Ginette Muller was contacted by Mr Rob Berry of Atlas Gantt in mid-august 2017 to discuss the Scheme of Arrangement process. Mr Berry advised that he was specifically interested in how the Scheme of Arrangement process would work in relation to a company named Rimfire Constructions (Qld) Pty Ltd. Several days later, Mr Berry advised Ginette Muller that the Company had appointed a solicitor to facilitate a Scheme of Arrangement. Ginette Muller contacted the Company s Solicitor Ms Rhonda King, on 30 August 2017 to express an interest at being involved in the process and the mechanics of a Scheme of Arrangement were discussed. Ginette Muller was then contacted by the Company Director, Mr Danny Cain on Friday, 1 September Mr Cain advised that GM Insolvency was one of three firms being considered by him to be appointed as a Scheme Administrator. GM Insolvency Pty Ltd ACN Postal Address GPO Box 2810, Brisbane QLD 4001 P. +61 (0) E. info@gmadvisory.com.au Liability limited by a scheme approved under Professional Standards Legislation.

15 The discussion held between the two was in relation to the way a Scheme of Arrangement works. There was also a general discussion around the mechanics of a court process compared to Voluntary Administration or a Liquidation process. The discussion was very general. On Wednesday, 6 September 2017 Mr Cain contacted Ginette Muller and advised that matters had changed and that he could not see a Scheme of Arrangement working and instead was now looking at Voluntary Administration and a Deed of Company Arrangement. Mr Cain requested a cost estimate for the Voluntary Administration. Mr Cain advised that there were two other insolvency practitioners being considered for the role of Voluntary Administrator. Ginette Muller called Mr Cain approximately 2 hours later and provided him with a cost estimate. Later on 6 September 2017, Ginette Muller prepared the appointment documents and sent them to Mr Cain by the next morning. On 7 September 2017, Mr Cain advised that he had decided to appoint Ginette Muller and Marcus Watters as Administrators of the Company. The conversations with the Director do not affect our independence for the following reasons: Any advice was limited to assessing the consequences and comparisons of various types of external administrations; and We did not advise the director personally about any matters. We have provided no other information or advice to the Company, its director and its advisors prior to our appointment beyond that outlined in this declaration. The relationship with Atlas Gantt is a professional relationship. Professional relationships between accountants and business advisors are common practice and there are no formal agreements between GM Insolvency, GM Insolvency Employees or Atlas Gantt that impact our independence in carrying out our duties as Administrators. ii Relevant Relationships (excluding Professional Services to the Insolvent) Neither we, nor our firm, have, or have had within the preceding 24 months, any relationships with Rimfire Constructions (Qld) Pty Ltd, an associate of the Rimfire Constructions (Qld) Pty Ltd, a former insolvency practitioner appointed to Rimfire Constructions (Qld) Pty Ltd or any person or entity that has security over on the whole or substantially whole of the Rimfire Constructions (Qld) Pty Ltd s property. iii Prior Professional Services to the Insolvent Neither we, nor our Firm, have provided any professional services to Rimfire Constructions (Qld) Pty Ltd in the previous 24 months, other than those outlined herein. 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 Rimfire Constructions (Qld) Pty Ltd, an associate of Rimfire Constructions (Qld) Pty Ltd, a former insolvency practitioner appointed to Rimfire Constructions (Qld) Pty Ltd or any person or entity that has a valid and enforceable security interest on the whole or substantially whole of Company s property that should be disclosed. 2 P age Declaration of Independence, Relevant Relationships and Indemnities (gmadvisory )

16 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 and we have not received any up-front payments in respect of our remuneration or disbursements. Dated: 7 th day of September Ginette Muller Administrator... Marcus Watters Administrator NOTE: 1. If circumstances change, or new information is identified, I am/we are required under the Corporations Act 2001 and the ARITA Code of Professional Practice to update this Declaration and provide a copy to creditors with my/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. 3 P age Declaration of Independence, Relevant Relationships and Indemnities (gmadvisory )