I advise that following the payment that has been made to employees to date, that no further payments to employees are expected.

Transcription

1 30 May 2013 TO THE CREDITOR AS ADDRESSED Dear Sir/Madam Beechey Carriers Pty Limited (In Liquidation) ACN R & M Beechey Storage Pty Limited (In Liquidation) ACN RMB Equipment Pty Limited (In Liquidation) ACN Beechey Carriers Brisbane Pty Limited (In Liquidation) ACN (Collectively referred to as the Group ) I refer to the appointment of Morgan Kelly and I as Administrators on 22 June 2012 and to our subsequent appointment as Liquidators of the Group on 27 July Notice is given pursuant to Section 506(1)(f) of the Corporations Act 2001 ( the Act ) convening a meeting of creditors to be held on Tuesday, 18 June 2013 at 10:30am at the offices of Ferrier Hodgson, Level 13, 225 George Street, SYDNEY NSW Accordingly, please find attached our report to creditors dated 30 May 2013 ( the Report ) and a notice of meeting (Form 529) attached as Annexure C to the Report, convening a meeting of creditors for the following purpose: To receive and consider a report from the Liquidators; To consider a summary of receipts and payments of the Liquidators; To fix or determine the remuneration of the Liquidators; To fix or determine the future remuneration of the Liquidators; and To consider whether, pursuant to Section 477(2A) of the Act, creditors authorise the Liquidators to compromise a debt owed to any of the above companies. I kindly request your attendance at the meeting, or, in the event that you are unable to attend the meeting in person, a proxy form (attached) be completed and returned to this office via post or (madeleine.tuck@fh.com.au) prior to the meeting. I advise that following the payment that has been made to employees to date, that no further payments to employees are expected. I advise that I do not expect any distribution to unsecured creditors from the liquidation of the Group. Should you have any queries, please contact Madeleine Tuck of this office on (02) Yours faithfully Ryan Eagle Liquidator

2 Beechey Carriers Pty Limited (In Liquidation) ACN R&M Beechey Storage Pty Limited (In Liquidation) ACN RMB Equipment Pty Limited (In Liquidation) ACN Beechey Carriers Brisbane Pty Limited (In Liquidation) ACN (Together referred to as the Group ) Report to Creditors 30 May 2013

3 Table of Contents Section Page Glossary of Terms Introduction Conduct of the Liquidation Matters Addressed to Date Liquidators Receipts and Payments Debtors Motor Vehicles / Trucks / Trailers Contingents assets Employee claims Liquidators Investigation Nature and scope of review Voidable transactions Potential liquidator recoveries - insolvent trading Estimated outcome statements Beechey estimated outcome RMB updated estimated outcome Dividend to Priority Creditors Distribution to Unsecured Creditors Meeting of Creditors Liquidators Remuneration Conclusion beechey report to creditors.docx Report to Creditors B09: May 2013 Page 0

4 Annexure A B C D E F G H Remuneration Report - Beechey Remuneration Report RMB Equipment Notice of Meeting Summary of Receipts and Payments Formal Proof of Debt Appointment of Proxy - Beechey Appointment of Proxy RMB Equipment Creditor Information Sheet beechey report to creditors.docx Report to Creditors B09: May 2013 Page 1

5 Glossary of Terms Abbreviation ABN ACN Description Australian Business Number Australian Company Number Act The Corporations Act 2001 ASIC ATO Beechey Beechey Storage Carriers Brisbane Dick Smith Directors ERV GEERS Group IPA NAB NDF Facility PILN PMSI PPE Australian Securities and Investments Commission Australian Taxation Office Beechey Carriers Pty Ltd (In Liquidation) R&M Beechey Storage Pty Ltd (In Liquidation) Beechey Carriers Brisbane Pty Ltd (In Liquidation) ATF for the New England Investment Trust Dick Smith Electronics Pty Ltd Ronald Beechey, Matthew Beechey and Karen Thomas Estimated Realisable Value General Employee Entitlements and Redundancy Scheme Beechey Carriers Pty Ltd (In Liquidation); R&M Beechey Storage Pty Ltd (In Liquidation); RMB Equipment Pty Ltd (In Liquidation); and Beechey Carriers Brisbane Pty Ltd (In Liquidation). Insolvency Practitioners Association of Australia National Australia Bank NAB debtor finance facility Payment In Lieu of Notice Purchase Money Security Interest Property, Plant and Equipment Regulation The Corporation Regulations 2001 Remuneration report RMB Equipment SGC Remuneration Request Approval Report RMB Equipment Pty Ltd (In Liquidation) Superannuation Guarantee Charge beechey report to creditors.docx Report to Creditors B09: May 2013 Page 2

6 1 Introduction I refer to the appointment of Morgan Kelly and I as Administrators on 22 June 2012 and to our subsequent appointment as Liquidators on 27 July 2012 of Beechey Carriers Pty Limited (In Liquidation), R&M Beechey Storage Pty Ltd (In Liquidation), RMB Equipment Pty Ltd (In Liquidation) and Beechey Carriers Brisbane Pty Ltd (In Liquidation) (together referred to as the Group ). Under Section 506(1)(f) of the Act, the liquidators may convene a general meeting of the Group for the purpose of obtaining the sanction by special resolution in respect of any matter or for any other purpose he or she thinks fit. A notice of meeting (Form 529) is attached at Annexure C convening a meeting of creditors to be held on 18 June 2013 at 10:30am at the offices of Ferrier Hodgson to: Receive and consider a report from the liquidators; Consider a summary of receipts and payments of the liquidators; Fix or determine the remuneration of the liquidators; Fix or determine the future remuneration of the liquidators; and Compromise a debt owed by Beechey s former landlord in accordance with Section 477(2A) of the Act. On 13 December 2012 the former employees of Beechey were collectively paid $585, via the General Employee Entitlements and Redundancy Scheme (GEERS). At this stage, the liquidators do not anticipate that there will to be sufficient funds in the Liquidation for a dividend to priority or unsecured creditors. I now provide an update on the status of the liquidation and the results of my investigations into the affairs of the Group to date. This report should be read in conjunction with my previous Section 439A report to creditors dated 18 July Conduct of the Liquidation 2.1 Matters Addressed to Date Since my previous report to creditors dated 18 July 2012, activities conducted by the Liquidators of the Group include: 1. Collection of outstanding debtor amounts; 2. The sale of plant and machinery; 3. Investigating potential unfair preference payments and uncommercial transactions; 4. Investigations with respect to insolvent trading; 5. The pursuit of a claim against Dick Smith 6. The pursuit of a debt owed by Beechey s former landlord; 7. Responding to creditor queries and telephone calls; 8. Correspondence and preparation of reports to creditors; 9. Verification and adjudication of priority creditor claims; 10. Payment of amounts to priority creditors; and 11. Attendance to all statutory obligations beechey report to creditors.docx Report to Creditors B09: May 2013 Page 3

7 2.2 Liquidators Receipts and Payments Attached as Annexure D is a schedule of the Liquidators receipts and payments (inclusive of GST) for each of the Group s entities for the period 27 July 2012 to 30 April Debtors Beechey Pre-appointment debtors financed by NAB As advised in my previous report to creditors we were separately engaged by NAB to collect debtors financed by NAB. At the date of our appointment the outstanding debt owed under the NDF facility was $1,351k. The facility financed pre-appointment debtors of Beechey totalling $1,684k. As at 30 April 2013 we have realised $1,166k of the outstanding debtor ledger of $1,684k. The table below provides an estimate of likely collections from the remaining outstanding debtors. High ($) Low ($) Opening debtors balance 1,684,107 1,684,107 Less: Debtor collections to 30 April 2013 (1,166,465) (1,166,465) Less: Provision for doubtful debts (320,642) (379,642) Estimated further debtor collections 197, ,000 Pre and post-appointment debtors not financed by NAB There were $239k of pre and post appointment debtors that were not financed by NAB. As at 30 April 2013 we have realised $197k of these debtors. The table below shows the current estimated outcome of these debtors. High ($) Low ($) Opening debtors balance 239, ,610 Less: Debtor collections to 30 April 2013 (197,079) (197,079) Less: Provision for doubtful debts (14,856) (37,531) Estimated further debtor collections 27,675 5, RMB Equipment The Administrators also received $58k from the sale of four trucks that were sold by RMB Equipment prior to our appointment. This debtor realisation is noted in the RMB Equipment estimated outcome in section beechey report to creditors.docx Report to Creditors B09: May 2013 Page 4

8 2.4 Motor Vehicles / Trucks / Trailers Beechey At the date of appointment of Administrators Beechey owned six trailers that were not directly encumbered by a financier. These were valued at $49k and subsequently sold at auction for $123k RMB Equipment RMB Equipment held assets that were not directly encumbered to any financier as well as assets that were directly encumbered by financiers. A breakdown of the net return on these assets is provided below. Financier Actual Realisation Value ($) Assets not directly encumbered Trucks, motor vehicles and trailers 926,321 Total Assets not directly encumbered 926,321 Equity return from assets financed by Westpac 29,807 Equity return from assets financed by Esanda - Total return from sale of NAB assets 2,580,617 Total Assets directly encumbered 2,610,424 Total 3,536, Contingents assets Landlord claim As discussed in my previous report the Group previously operated out of premises located in Villawood. The landlord of the Villawood depot (Steve Konstantopoulos and Rosa Konstantopoulos) lodged a Statement of Claim on 27 February 2006 in the District Court in relation to a make good requirement under the lease. This claim was subsequently increased over the threshold whereby the District Court had jurisdiction and as a result the District Court proceedings were transferred to the Supreme Court of New South Wales. The landlord subsequently appealed and lost by way of a 3-0 decision by the judges of the Supreme Court on 15 December Beechey was awarded judgement for its legal costs plus interest. The principal amount of the Beechey claim exceeds ~$357k. Prior to the appointment of the Administrators the parties were disputing the calculation of interest on the principal amount. These proceedings ran for six years at significant cost and disruption to the business without being finalised. In order for Beechey to seek the maximum claim, the Liquidators need to incur further legal fees of $15k and instruct a costs assessor to determine the amount owing to Beechey. It is expected that the outcome of a costs assessment process would be that the total amount recoverable by Beechey would be ~$250k. The cost assessor would receive 10% of costs awarded ($25k). The cost assessors fees are payable regardless of whether the landlord beechey report to creditors.docx Report to Creditors B09: May 2013 Page 5

9 pays the assessed amount owing. Therefore there is significant risk that costs of $40k could be incurred, plus liquidator fees (estimated $20k), and no payment be made by the landlord. Since our appointment we have been in communication with Steve Konstantopoulos who has offered $150k for a full and final settlement of the claim. Accepting this offer will result in further legal and liquidator costs not being incurred. A comparison of the two options is detailed below: $000s Seek order for costs and interest payable Settle for $150k Recoverable amount Legal and cost assessor costs (40) (10) Liquidator costs (20) (10) Net recovery Risk of approach HIGH RISK LOW RISK In the context of the liquidation of Beechey, creditors should consider the estimated outcome in section 4.1 of this report. Any recovery from the landlord would be a realisation of an asset subject to a circulating charge. There is forecast to be a significant shortfall of assets subject to circulating charges. Therefore any recoveries from the landlord will be used to meet the liabilities of the Liquidators. In the unlikely event there was to be any funds in excess once the Liquidators liabilities are extinguished, priority creditors (GEERS and employees) would be paid. Given the potential difficulty of seeking an order for costs, the length of time involved in this approach and the possibility that there is a risk the landlord will be unable to pay any cost order, I recommend that this claim be settled for $150k. In light of the estimated outcome if either option is pursued in realising the landlord claim, there will still be no return to priority and unsecured creditors Dick Smith The Group had made a claim against Dick Smith in relation to the purchase of an Omega Container Forklift for approximately $1 million. Since our appointment we have continued action against Dick Smith in relation to this claim. Dick Smith have vigorously defended the claim. The Liquidators do not intend at this stage to pursue this claim further, as a result of the prospects of a successful recovery from Dick Smith beechey report to creditors.docx Report to Creditors B09: May 2013 Page 6

10 2.6 Employee claims I have reconciled the employee records and have calculated the priority debts owed by Beechey to former employees as follows: Entitlement Total Employee Entitlements accessed by the Liquidators ($) Non Priority Excluded Amount ($) Net Priority Entitlements ($) Amounts advanced by GEERS ($) Wages 22,117-22,117 17,912 Superannuation 176,603 29, ,505 - Annual Leave 374, , , ,528 Long Service Leave 102,522 34,163 68,359 62,113 PILN 138,339 13, , ,879 Redundancy 208,624 35, , ,847 Total Employee Entitlements 1,022, , , ,281 Funds of $585k have been advanced by the Government under the GEERS scheme. These funds have been distributed to former employees, pursuant to Section 560 of the Act the Government will now rank as a priority creditor in the liquidation for this amount. Please note that the Government GEERS scheme does not cover superannuation or entitlements to excluded employees. While the records of Beechey Storage and Carriers Brisbane indicated that these companies may have employed some of the Group s employees, our analysis determined that in fact all employees were employed by Beechey. 3 Liquidators Investigation 3.1 Nature and scope of review The Act requires the Liquidators to carry out investigations into the Group s business, property, affairs and financial circumstances. Investigations centre on transactions entered into by the Group that a liquidator might seek to void or otherwise challenge where the Group is wound up. Funds recovered would be available to the general body of unsecured creditors including secured creditors but only to the extent of any shortfall incurred after realising their security. A liquidator may recover funds from each type of transaction detailed in the Creditor Information Sheet described in Annexure H of this report. A liquidator may also recover funds through other avenues; for example, through action seeking compensation for insolvent trading or breach of director duties. The Liquidators knowledge of the Group s affairs comes principally from the following sources: Communications with parties who hold security interests regarding the nature and amount of the debt owed. These parties confirmed the information supplied by the Group; Discussions with the directors and their advisors; beechey report to creditors.docx Report to Creditors B09: May 2013 Page 7

11 An independent valuation of the Group s plant and equipment; Searches of the ASIC records relating to the Group and any related entities; and An examination of the Group s financial statements and management accounts. A precursor to the recovery of funds by a liquidator through the voiding of certain transactions or through other legal action, such as seeking compensation from directors for insolvent trading, is establishing the Group s solvency at the relevant time. Establishing insolvency is a complex matter due in part to the complexity of corporate financial transactions and the lack of clear prescriptive legal authority on proof of insolvency. Notwithstanding, there are two primary tests used in determining a company s solvency, at a particular date; namely: Balance sheet test; and Cash flow or commercial test. The Courts have widely used the cash flow or commercial test in determining a company s solvency at a particular date. Section 95A of the Act also contains a definition of solvency. That definition reflects the commercial test in stating that a person is solvent if the person is able to pay all the person s debts as and when they become due and payable. However, the commercial test is not the sole determinant of solvency. Determining solvency derives from a proper consideration of a company s financial position in its entirety and in the context of commercial reality. Relevant issues include, but are not limited to the following: The degree of illiquidity. A temporary lack of liquidity is not conclusive; Regard should be given to: o o Cash resources; and Monies available through asset realisations, borrowings against the security of assets or equity/capital raising; Not all of a company s assets may be relevant when considering solvency. For example, where a company proposes selling assets which are essential to its business operations, the proceeds of those assets should not be taken into account; The voluntary and temporary forbearance by creditors not to enforce payment terms; and It is not appropriate to base an assessment of whether a company can meet its liabilities as and when they fall due on the prospect that a company might trade profitably in the future. In summary, it is a company s inability using such resources as are available to it through the use of its assets, or otherwise, to meet its debts as they fall due, which indicates insolvency beechey report to creditors.docx Report to Creditors B09: May 2013 Page 8

12 3.2 Voidable transactions Unfair preferences Section 588FA of the Act gives the Liquidators the power to recover certain transactions that have had the effect of conferring a priority, preference or advantage to the creditor within six months of the commencement of the winding up. A requirement for the successful recovery of an unfair preference payment is that: At the time of payment of the unfair preference the company was insolvent; or The company becomes insolvent because of the unfair preference payment; and The creditor does not have a defence against the recovery of the unfair preference payments (i.e. the creditor was aware that at the time the payments were made that the company was insolvent). Beechey A review of the books and records of Beechey reveals that a payment plan was entered into with the ATO in respect of outstanding amounts. In the event payments were made, they may have been considered to be an unfair preference; however instalment payments were never made by Beechey in respect of these debts. RMB Equipment A review of the books and records of RMB Equipment reveals that a payment plan was entered into with the ATO in respect of outstanding amounts. My review indicates that RMB Equipment made payments totalling $17,000 to the ATO in the 6 months prior to the commencement of the winding up. It is my opinion that RMB Equipment was insolvent at the time some of the payments to the ATO were made and that the ATO may have been aware that RMB Equipment was insolvent at the time the payments were made. I am considering the ability to recover this amount from the ATO Uncommercial transactions Section 588FB(1) of the Act requires a liquidator to investigate transactions which may be deemed to be uncommercial, having regard to the detriment to the company (if any) suffered as a consequence of the transaction in the period two years prior to the appointment. RMB Equipment My investigations identified a transaction for the sale of plant and equipment by RMB Equipment, two days prior to my appointment, which may be deemed to be an uncommercial transaction. As a result of the transaction, the creditor received a benefit of approximately $216k at a time when we believe RMB Equipment was insolvent (20 June 2012). I have written to the creditor, who denied that the transaction was uncommercial. I have since received legal advice in respect to this transaction. The legal advice received indicates that the costs of pursuing this claim would be significant and the likelihood of recovering any funds uncertain. As a result of the ability to recover any funds being uncertain regardless of the legal cost incurred, it is not considered appropriate to take any further action at this stage. I will further discuss this matter with the creditors of RMB Equipment at the upcoming meeting beechey report to creditors.docx Report to Creditors B09: May 2013 Page 9

13 3.3 Potential liquidator recoveries - insolvent trading I have indicated that it was probable that the Group may have been insolvent from as early as March 2012, and that the directors would have had reasonable grounds for suspecting so. Based on that analysis, I have formed the preliminary view that the Group traded whilst it was insolvent. In assessing the merits of pursuing insolvent trading claims against the directors, I have assessed the defences available to them and the financial capacity of each of the directors. The defences available to the director include the fact that: The directors sought advice from professional advisors on the Group s position through May and June 2012 prior to the appointment of administrators; The directors sought to obtain additional finance from the Group s secured creditor; and The directors appointed Administrators when it became apparent that the Group would not be able to source additional finance. In light of the limited personal financial capacity of the directors to meet any insolvent trading claim, it is not considered appropriate to pursue an insolvent trading claim against the directors at this stage beechey report to creditors.docx Report to Creditors B09: May 2013 Page 10

14 4 Estimated outcome statements 4.1 Beechey estimated outcome High ($) Low ($) Assets subject to non-circulating charges Land, plant & equipment, other Debtors subject to NAB debtor finance facility 1,363 1,304 Less: Realisation costs Administrators fees and disbursements (78) (78) Liquidators fees and disbursements (195) (215) Interest and costs on NDF facility (51) (63) Legal fees (20) (40) Closure costs (5) (5) Net realisations from assets subject to non-circulating charges 1,136 1,025 Less: secured creditor s non-circulating claims ** (4,915) (4,915) Surplus/(Deficiency) after secured creditor non-circulating charge claims (3,779) (3,890) Assets subject to circulating charges Debtors Dick Smith claim - - Landlord claim Net realisations from assets subject to circulating charges Less: priority claims Administrators fees and disbursements (84) (84) Liquidators fees and disbursements (166) (196) Closure costs (28) (33) Legal fees (33) (48) Employee entitlements (791) (791) Total priority claims (1,102) (1,152) Return to employees/entitlements* 64 Nil Net funds available to secured creditor after priority claims 1,136 1,025 Less: secured creditor s claim (4,910) (4,910) Return to secured creditor (%) 23% 21% Total funds available after priority claims and secured creditor claims Nil Nil Total voidable transactions and other recoveries - - Litigation and other recovery fees beechey report to creditors.docx Report to Creditors B09: May 2013 Page 11

15 Total funds available to ordinary unsecured creditors Nil Nil Total Unsecured Creditor Claims 1,082 1,082 Estimated dividend to ordinary unsecured creditors Nil Nil *The Government have provided funding under the GEERS scheme in the amount of $585, These amounts have been distributed to former employees and pursuant to Section 560 of the Act, the government will rank as a priority creditor in the liquidation of Beechey. **Before interest and other costs able to be claimed by the secured creditor beechey report to creditors.docx Report to Creditors B09: May 2013 Page 12

16 4.2 RMB updated estimated outcome High ($) Low ($) Assets subject to non-circulating charges Land, plant & equipment, other 3,599 3,599 Less: Realisation costs Administrators fees and disbursements (99) (99) Liquidators fees and disbursements (49) (168) Closure costs (96) (96) Auctioneers costs (80) (80) Marketing and removal costs (31) (31) Net realisations from assets subject to non-circulating charges 3,243 3,124 Less: secured creditor s non-circulating claims ** (4,915) (4,915) Surplus/(Deficiency) after secured creditor non-circulating charge claims (1,672) (1,791) Assets subject to circulating charge Other realisations Net realisations from assets subject to circulating charges Less: priority claims Administrators fees and disbursements (2) (2) Liquidators fees and disbursements (2) (3) Legal fees - - Total priority claims (4) (4) Net funds available to secured creditor after priority claims 3,297 3,177 Less: secured creditor s claim (4,915) (4,915) Return to secured creditor (%) 67% 65% Total funds available after priority claims and secured creditor claims Nil Nil Total voidable transactions and other recoveries - - Litigation and other recovery fees - - Total funds available to ordinary unsecured creditors Nil Nil Total Unsecured Creditor Claims 1,023 1,023 Estimated dividend to ordinary unsecured creditors Nil Nil **Before interest and other costs able to be claimed by the secured creditor beechey report to creditors.docx Report to Creditors B09: May 2013 Page 13

17 4.3 Dividend to Priority Creditors On 13 December 2012 the former employees of the Group were collectively paid $585,281 via the General Employee Entitlements and Redundancy Scheme (GEERS) Scheme. 4.4 Distribution to Unsecured Creditors At this stage, the Liquidators do not anticipate there to be sufficient realisations in the liquidations to declare a dividend to unsecured creditors. 5 Meeting of Creditors A meeting of creditors of the Group pursuant to Section 506(1)(f) of the Act has been convened for 18 June 2013 at 10:30am to be held at the offices of Ferrier Hodgson, Level 13, 225 George Street, Sydney NSW The purpose of the meeting is to: Receive and consider a report from the liquidators; Consider a summary of receipts and payments of the liquidators; Fix or determine the remuneration of the liquidators; Fix or determine the future remuneration of the liquidators; and Compromise a debt owed by Beechey s former landlord in accordance with Section 477(2A) of the Act. In this regard, I enclose the following: A Notice of Meeting of Creditors ( Annexure C ); and Formal Proof of Debt ( Annexure E ). In the event that creditors are unable to attend the meeting in person, a Proxy Form ( Annexure F ) and ( Annexure G ) for Beechey and RMB Equipment respectively, is attached, which may be completed and returned to this office prior to the meeting. The Proof of Debt and Proxy Form should be lodged at our offices before the meeting and, in any event, no later than 5:00pm on the day prior to the meeting. Forms can be sent by facsimile on (02) marked to the attention of Madeleine Tuck or scanned and ed to madeleine.tuck@fh.com.au. However please note that Corporations Regulation A requires lodgement of the original of the Proxy Form with the Liquidators office within 72 hours of lodging the faxed or ed copy. 6 Liquidators Remuneration Pursuant to Section 499(7) of the Act, I enclose as Annexure A and B the liquidators remuneration report dated 30 April 2013 for Beechey and RMB Equipment respectively, detailing the activities undertaken by myself and my staff and future activities to be undertaken to finalise the liquidations. I intend seeking approval of the remuneration set out in the remuneration report. Details of disbursements incurred are also included in the remuneration report. I note that we have been separately engaged by the NAB to collect debtor amounts owing under NAB s debtor finance facility. I have included details of the remuneration incurred in relation to the NAB debtor collection engagement in the Beechey remuneration report beechey report to creditors.docx Report to Creditors B09: May 2013 Page 14

18 7 Conclusion Should you have any queries, please contact Ms Madeleine Tuck of this office on (02) Dated this 30 th day of May 2013 Ryan Eagle Liquidator beechey report to creditors.docx Report to Creditors B09: May 2013 Page 15

19 Annexure A Remuneration Report - Beechey Beechey Report to Creditors Report to Creditors B09: May 2013 Page 16

20 Corporations Act 2001 Section 499(7) Beechey Carriers Pty Limited (In Liquidation) ACN ( the Company ) Remuneration Request Approval Report Part 1: Declaration We, Ryan Eagle and Morgan Kelly of Ferrier Hodgson, have undertaken a proper assessment of this remuneration claim for our appointment as Liquidators of the Company 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 liquidations. Part 2: Executive Summary To date, $299, has been approved and $124, has been paid in this administration. This remuneration report details approval sought for the following fees: Period Amount (ex GST) Past remuneration approved: 22 June 2012 to 18 July 2012 $129, July 2012 to 27 July 2012 $20, Post 28 July 2012 $150, Total past remuneration approved $299, Current remuneration approval sought: Liquidation Resolution 1: Liquidation $157, July 2012 to 30 April 2013 Resolution 1: NAB engagement* $107, July 2012 to 30 April 2013 Resolution 1: TOTAL $265, July 2012 to 30 April 2013 Resolution 2: Liquidation $52, May 2013 to completion Resolution 2: NAB engagement* $32, May 2013 to completion Resolution 2: TOTAL 1 May 2013 to completion $84,741.00** * As detailed in our report to creditors dated 30 May 2013, we were separately engaged by NAB in relation to the collection of debtors under the NAB debtor finance facility. Whilst these costs have been included in our Resolution, we have separately provided details of the remuneration incurred in respect of this engagement.

21 Remuneration Request Approval Report 30 May 2013 Page 2 ** 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. The above remuneration differs to the estimate of costs provided in the Initial Advice to Creditors dated 18 July 2012 as it includes time cost incurred by the Company in relation to the following: Collection of debtors in relation to pre-appointment debtors financed by NAB; Collection of debtors in relation to pre and post appointment debtors not financed by NAB; Realisation of Beechey s plant and equipment; Finalisation of ongoing trading issues; Investigation and pursuit of Dick Smith claim; Additional costs in respect of investigating and recovering the debt owed by the Company s former landlord; and Attendance to the Liquidators statutory obligations Part 3: Description of Work Completed Resolution 1 Company: Beechey Carriers Pty Limited (In Liquidation) Administration Type: Creditors Voluntary Liquidation Practitioners: Ryan Eagle and Morgan Kelly of Ferrier Hodgson Period: 27 July 2012 to 30 April 2013 Task Area General Description Includes Assets hours $116, (excl GST) Assets subject to specific charges Debtors Plant and equipment Other assets All tasks associated with realising a charged asset Correspondence with debtors Reviewing and assessing debtors ledgers Liaising with debt collectors and solicitors Liaising with valuers, auctioneers and interested parties Reviewing asset listings Tasks associated with realising other assets Creditors hours $33, (excl GST) Creditor enquiries Secured creditor reporting Creditor reports Dealing with proofs of debt Receive and follow up creditor enquiries via telephone and Maintaining creditor enquiry register Review and prepare correspondence to creditors and their representatives via facsimile, and post Preparing reports to secured creditor Responding to secured creditor s queries Investigation Meeting and general reports to creditors Receipting and filing proofs of debt when not

22 Remuneration Request Approval Report 30 May 2013 Page 3 Task Area General Description Includes Meeting of creditors related to a dividend Corresponding with OSR and ATO regarding proofs of debt when not related to a dividend Preparation 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. Preparation and lodgement minutes of meetings with ASIC Respond to stakeholder queries and questions immediately following meeting Employees hours $32, (excl GST) Employee enquiries Fair Entitlements Guarantee ( FEG ) / General Employee Entitlements & Redundancy Scheme ( GEERS ) Calculation of entitlements Employee dividend Receive and follow up employee enquiries via telephone Maintain employee enquiry register Review and prepare correspondence to creditors and their representatives via facsimile, and post Preparation of letters to employees advising of their entitlements and options available Receive and prepare correspondence in response to employees objections to leave entitlements Correspondence with Department of Education, Employment & Workplace Relations ( DEEWR ) Preparing notification spreadsheet Preparing FEG / GEERS quotations Preparing FEG / GEERS distributions Calculating employee entitlements Reviewing employee files and Company s books and records Reconciling superannuation accounts Reviewing awards Liaising with solicitors regarding entitlements Correspondence with employees regarding dividend Correspondence with ATO regarding SGC proof of debt Calculating dividend rate Preparing dividend file Advertising dividend notice Preparing distribution Receipting proofs of debt

23 Remuneration Request Approval Report 30 May 2013 Page 4 Task Area General Description Includes Adjudicating proofs of debt Ensuring PAYG is remitted to ATO Trade On Trade-on management Liaising with suppliers Liaising with management and staff hours Attendance on site $6, (excl Authorising purchase orders GST) Maintaining purchase order registry 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 Processing receipts and payments Entering receipts and payments into accounting system Budgeting and financial reporting Reviewing Company s budgets and financial statements Preparing budgets Preparing weekly financial reports Finalising trading profit or loss Investigation hours $7, (excl GST) Conducting investigation Litigation / recoveries Collection of Company books and records Correspondence with ASIC to receive assistance in obtaining reconstruction of financial statements, Company s books and records and Report as to Affairs 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 Preparation of investigation file Lodgement of investigation with ASIC Preparation and lodgement of supplementary report if required Internal meetings to discuss status of litigation Preparing brief to solicitors Liaising with solicitors regarding recovery actions

24 Remuneration Request Approval Report 30 May 2013 Page 5 Task Area General Description Includes Administration hours $69, (excl GST) Attending to negotiations Attending to settlement matters ASIC reporting Preparing statutory investigation reports Preparing affidavits seeking non-lodgement assistance Liaising with ASIC Correspondence General correspondence Document maintenance / file review First month, then six monthly administration / checklist review Filing of documents File reviews Updating checklists Insurance Identification of potential issues requiring attention of insurance specialists Correspondence with insurer regarding initial and ongoing insurance requirements Reviewing insurance policies Correspondence with previous brokers Bank account administration Preparing correspondence to open 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 Preparing BASs Completing group certificates Planning / review Discussions regarding status / strategy of administration Books and records / storage Dealing with records in storage Sending job files to storage

25 Remuneration Request Approval Report 30 May 2013 Kelly, Morgan Partner , Eagle, Ryan Partner , , , , , , , Hansell, Joseph Director , , , , , , Khoury, Michael Director Grimshaw, Bradley Senior Manager , , Haslam, Nick Senior Manager , , , Saini, Anmol Manager , , , , , , Walker, Ben Manager Fernandez, Fred Manager , , Hosking, Mathew Assistant Manager , , , , Rogers, Rhys Assistant Manager , , , Speake, Phillip Senior Analyst , , , , , McCreesh, Brendan Senior Analyst Ho, Natalie Analyst Livanos, Martie Analyst Page 6 Part 4: Calculation of Remuneration Resolution 1 Employee Position Rate Total Task Area (ex GST) Assets Creditors Employees Trade On Investigation Administration ($/Hour) (Hrs) ($) (Hrs) ($) (Hrs) ($) (Hrs) ($) (Hrs) ($) (Hrs) ($) (Hrs) ($)

26 Remuneration Request Approval Report 30 May 2013 Silvestre, David Analyst Petkovic, Michael Analyst Jarick, Michael Analyst Ho, Natalie Accountant , Cummings, Lauri Accountant Gatto, Claudia Accountant Moore, Douglas Accountant , Delaguiado, Astra CP Operator , , Moore, Douglas Junior Accountant , , , , , Beaumont, Robert Junior Accountant , , , , Tuck, Madeleine Junior Accountant , , , Total (excluding GST) 1, , , , , , , , Page 7 Employee Position Rate Total Task Area (ex GST) Assets Creditors Employees Trade On Investigation Administration ($/Hour) (Hrs) ($) (Hrs) ($) (Hrs) ($) (Hrs) ($) (Hrs) ($) (Hrs) ($) (Hrs) ($) GST 26, Total (including GST) 291, , Average Hourly Rate , , ,946.70

27 Part 5: Description of Work to be Completed Resolution 2 Company: Beechey Carriers Pty Limited (In Liquidation) Administration Type: Creditors Voluntary Liquidation Practitioners: Ryan Eagle and Morgan Kelly of Ferrier Hodgson Period: 1 May 2013 to completion Task Area General Description Includes Assets Other assets Tasks associated with realising other assets hours $30, (excl GST) Creditors hours $10, (excl GST) Investigation hours $12, (excl GST) Creditor enquiries Secured creditor reporting Creditor reports Dealing with proofs of debt Meeting of creditors Examinations Litigation / recoveries Receive and follow up creditor enquiries via telephone and Maintaining creditor enquiry register Review and prepare correspondence to creditors and their representatives via facsimile, and post Preparing reports to secured creditor Responding to secured creditor s queries Investigation Meeting and general reports to creditors Receipting and filing proofs of debt when not related to a dividend Corresponding with OSR and ATO regarding proofs of debt when not related to a dividend Preparation of meeting notices, proxies and advertisements Forwarding notices of meetings 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. Preparation and lodgement minutes of meetings with ASIC Respond to stakeholder queries and questions immediately following meeting Preparing brief to solicitor Liaising with solicitor(s) regarding examinations Attendance at examination Reviewing examination transcripts Liaising with solicitor(s) regarding outcome of examinations and further actions available Internal meetings to discuss status of litigation Preparing brief to solicitors Liaising with solicitors regarding recovery

28 Remuneration Request Approval Report 30 May 2013 Page 9 Task Area General Description Includes Administration hours $32, (excl GST) ASIC reporting actions Attending to negotiations Attending to settlement matters Preparing statutory investigation reports Preparing affidavits seeking non-lodgement assistance Liaising with ASIC Members meeting Correspondence and other actions incidental to the calling and holding of the meeting Correspondence General correspondence Document maintenance / file review Filing of documents / checklist File reviews Updating checklists Bank account administration Preparing correspondence to close accounts Requesting bank statements Bank account reconciliations Correspondence with bank regarding specific transfers ASIC Form 524 and other forms Preparing and lodging ASIC forms including 505, 524, 911, etc Correspondence with ASIC regarding statutory forms ATO and other statutory reporting Notification of appointment Preparing BASs Completing group certificates Finalisation Notifying ATO of finalisation Cancelling ABN / GST / PAYG registration Completing checklists Finalising WIP Books and records / storage Dealing with records in storage Sending job files to storage The remuneration estimate may be summarised as follows: Assets Creditors Investigation Administration Hours Amount ($) 30, , , , Please note that the above is an estimate only. If costs exceed the estimate, I will advise creditors accordingly and seek further approval.

29 Remuneration Request Approval Report 30 May 2013 Page 10 Part 6: Statement of Remuneration Claim Resolutions to be put to creditors at the meeting convened for 18 June At the meeting of creditors convened for 18 June 2013, creditors will be asked to consider the following resolutions: Resolution 1: "That the remuneration of the Liquidators, as set out in the Remuneration Request Approval Report dated 30 May 2013 for the period from 27 July 2012 to 30 April 2013 be fixed in the amount of $265,247.50, plus any applicable GST, and may be paid." Please note that further approval of the Liquidators remuneration will / will not be sought in the future. Resolution 2: "That the remuneration of the Liquidators, as set out in the Remuneration Request Approval Report dated 30 May 2013, for the period from 1 May 2013 to completion be fixed up to a maximum amount of $84, plus any applicable GST, but subject to upward revision by resolution of creditors, and that the Liquidators be authorised to make periodic payments on account of such accruing remuneration as incurred." Please note that the above is an estimate only. If costs exceed the estimate, creditors will be advised accordingly and further approval of the Liquidators remuneration will be sought in the future. Remuneration approved and drawn to date Set out below is a summary of the Liquidators remuneration approved and drawn to date: Period Amount Approved ($) Amount Drawn ($) 22 June 2012 to 18 July , , July 2012 to 27 July , , Post 28 July , Part 7: Remuneration Recoverable from External Sources The Liquidators have received funding from external sources in respect of Liquidators remuneration. The basis on which the funding was provided is: Remuneration totalling $14, was received to cover the time costs incurred in relation the Fair Entitlements Guarantee Act 2012 (previously known as GEERS).

30 Remuneration Request Approval Report 30 May 2013 Page 11 Part 8: Disbursements Disbursements are divided into three types: A, B1, B2. A B1 B2 disbursements are all externally provided professional services. These are recovered at cost. An example of an A disbursement is legal fees. disbursements are externally provided non-professional costs such as travel, accommodation and search fees. B1 disbursements are recovered at cost. disbursements are internally provided non-professional costs such as photocopying, printing and postage. B2 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 both variable and fixed costs. The relevant rates are set out below. Disbursement Type Advertising Couriers Mileage Reimbursement Photocopying (colour) Photocopying (mono) Photocopying (outsourced) Printing (colour) Printing (mono) Printing (outsourced) Postage Searches Storage and Storage Transit Telephone Calls Charges (excluding GST) At cost At cost $0.67 per kilometre $0.50 per page $0.20 per page At cost $0.50 per page $0.20 per page At cost At cost At cost At cost At cost 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. Disbursements incurred to date are shown in the summary of receipts and payments. Creditor approval for the payment of disbursements is not required. However, the Liquidators must account to creditors. Creditors have the right to question the incurring of disbursements and can challenge disbursements in court. Part 9: Report on Progress of the Administration The Remuneration Request Approval Report must be read in conjunction with the report to creditors dated 30 May 2013 which outlines the progress of the administration. Part 10: Summary of Receipts and Payments A summary of receipts and payments for the period 27 July 2012 to 30 April 2013 is attached as Annexure C in the Report to Creditors.

31 Remuneration Request Approval Report 30 May 2013 Page 12 Part 11: Information Sheet The partners of Ferrier Hodgson are, generally, members of the Insolvency Practitioners Association of Australia ( IPA ). Ferrier Hodgson follows the IPA Code of Professional Practice. A copy of the Code of Professional Practice may be found on the IPA website at An information sheet concerning approval of remuneration in external administrations can also be obtained from the IPA website. Part 12: Queries If you require further information in respect of the above, or have other queries, please contact Madeleine Tuck of this office on (02) prior to the creditors meeting. Dated: this 30 th day of May 2013 Ryan Eagle Liquidator

32 Annexure B Remuneration Report RMB Equipment Beechey Report to Creditors Report to Creditors B09: May 2013 Page 17

33 Corporations Act 2001 Section 499(7) RMB Equipment Pty Limited (In Liquidation) ACN ( the Company ) Remuneration Request Approval Report Part 1: Declaration We, Ryan Eagle and Morgan Kelly of Ferrier Hodgson, have undertaken a proper assessment of this remuneration claim for our appointment as Liquidators of the Company 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 liquidation. Part 2: Executive Summary To date, $99, has been approved and $99, has been paid in this administration. This remuneration report details approval sought for the following fees: Period Amount (ex GST) Past remuneration approved: 22 June 2012 to 18 July , July 2012 to 27 July , Total past remuneration approved 99, Current remuneration approval sought: Liquidation Resolution 1: 28 July 2012 to 30 April , Resolution 2: 1 May 2013 to completion* 42, * 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.

34 Remuneration Request Approval Report 30 May 2013 Page 2 Part 3: Description of Work Completed Resolution 1 Company: RMB Equipment Pty Limited (In Liquidation) Administration Type: Creditors Voluntary Liquidation Practitioners: Ryan Eagle and Morgan Kelly of Ferrier Hodgson Period: 27 July 2012 to 30 April 2013 Task Area General Description Includes Assets hours $29, (excl GST) Assets subject to specific charges Debtors Plant and equipment Other assets All tasks associated with realising a charged asset Correspondence with debtors Reviewing and assessing debtors ledgers Liaising with debt collectors and solicitors Liaising with valuers, auctioneers and interested parties Reviewing asset listings Tasks associated with realising other assets Creditors hours $21, (excl GST) Creditor enquiries Secured creditor reporting Creditor reports Dealing with proofs of debt Meeting of creditors Receive and follow up creditor enquiries via telephone and Maintaining creditor enquiry register Review and prepare correspondence to creditors and their representatives via facsimile, and post Preparing reports to secured creditor Responding to secured creditor s queries Preparing section 439A report, investigation, meeting and general reports to creditors Receipting and filing proofs of debt when not related to a dividend Corresponding with OSR and ATO regarding proofs of debt when not related to a dividend Preparation of meeting notices, proxies and advertisements Forwarding notice of meetings 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. Preparation and lodgement minutes of meetings with ASIC Respond to stakeholder queries and questions immediately following meeting

35 Remuneration Request Approval Report 30 May 2013 Page 3 Task Area General Description Includes Trade On hours $6, (excl GST) Trade-on management Liaising with suppliers Liaising with management and staff Attendance on site Authorising purchase orders Maintaining purchase order registry 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 Processing receipts and payments Entering receipts and payments into accounting system Budgeting and financial reporting Reviewing Company s budgets and financial statements Preparing budgets Preparing weekly financial reports Finalising trading profit or loss Investigation hours $14, (excl GST) Conducting investigation Collection of Company books and records Correspondence with ASIC to receive assistance in obtaining reconstruction of financial statements, Company s books and records and Report as to Affairs 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 Preparation of investigation file Lodgement of investigation with ASIC Preparation and lodgement of supplementary report if required Litigation / recoveries Internal meetings to discuss status of litigation Preparing brief to solicitors Liaising with solicitors regarding recovery actions Attending to negotiations Attending to settlement matters

36 Remuneration Request Approval Report 30 May 2013 Page 4 Task Area General Description Includes ASIC reporting Preparing statutory investigation reports Preparing affidavits seeking non-lodgement assistance Liaising with ASIC Dividend 1.20 hours $ (excl GST) Processing proofs of debt Preparation of correspondence to potential creditors inviting lodgement of POD Receipt of PODs Maintain POD register Adjudicating PODs Request further information from claimants regarding POD Preparation of correspondence to claimant advising outcome of adjudication Administration hours $35, (excl GST) Correspondence General correspondence Document maintenance / file review First month, then six monthly administration / checklist review Filing of documents File reviews Updating checklists Insurance Identification of potential issues requiring attention of insurance specialists Correspondence with insurer regarding initial and ongoing insurance requirements Reviewing insurance policies Correspondence with previous brokers Bank account administration Preparing correspondence to close 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 Preparing BASs Completing group certificates Planning / review Discussions regarding status / strategy of administration

37 Remuneration Request Approval Report 30 May 2013 Eagle, Ryan Partner , , , , , , Duggan, Robyn Executive Director Hansell, Joseph Director , , , , , Grimshaw, Bradley Senior Manager , , Haslam, Nick Senior Manager , , , Saini, Anmol Manager , , , , Hosking, Mathew Assistant Manager , , , , , , Rogers, Rhys Assistant Manager , , Speake, Phillip Senior Analyst Ho, Natalie Analyst Ho, Natalie Accountant Cummings, Lauri Accountant Delaguiado, Astra CP Operator Moore, Douglas Junior Accountant , , Beaumont, Robert Junior Accountant , , Page 5 Part 4: Calculation of Remuneration Resolution 1 Employee Position Rate Total Task Area (ex GST) Assets Creditors Trade On Investigation Dividend Administration ($/Hour) (Hrs) ($) (Hrs) ($) (Hrs) ($) (Hrs) ($) (Hrs) ($) (Hrs) ($) (Hrs) ($)

38 Remuneration Request Approval Report 30 May 2013 Tuck, Madeleine Junior Accountant , , Total (excluding GST) , , , , , , GST 10, , , , , Total (including GST) 118, , , , , , Average Hourly Rate Page 6 Employee Position Rate Total Task Area (ex GST) Assets Creditors Trade On Investigation Dividend Administration ($/Hour) (Hrs) ($) (Hrs) ($) (Hrs) ($) (Hrs) ($) (Hrs) ($) (Hrs) ($) (Hrs) ($)

39 Part 5: Description of Work to be Completed Resolution 2 Company: RMB Equipment Pty Limited (In Liquidation) Administration Type: Creditors Voluntary Liquidation Practitioners: Ryan Eagle and Morgan Kelly of Ferrier Hodgson Period: 1 May 2013 to completion Task Area General Description Includes Assets Other assets Tasks associated with realising other assets hours $7, (excl GST) Creditors hours $7, (excl GST) Investigation hours $7, (excl GST) Creditor enquiries Secured creditor reporting Creditor reports Dealing with proofs of debt Meeting of creditors Litigation / recoveries ASIC reporting Receive and follow up creditor enquiries via telephone and Maintaining creditor enquiry register Review and prepare correspondence to creditors and their representatives via facsimile, and post Preparing reports to secured creditor Responding to secured creditor s queries Investigation Meeting and general reports to creditors Receipting and filing proofs of debt when not related to a dividend Corresponding with OSR and ATO regarding proofs of debt when not related to a dividend Preparation 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. Preparation and lodgement minutes of meetings with ASIC Respond to stakeholder queries and questions immediately following meeting Internal meetings to discuss status of litigation Preparing brief to solicitors Liaising with solicitors regarding recovery actions Attending to negotiations Attending to settlement matters Preparing statutory investigation reports Preparing affidavits seeking non-lodgement assistance Liaising with ASIC

40 Remuneration Request Approval Report 30 May 2013 Page 8 Task Area General Description Includes Administration hours $19, (excl GST) Correspondence General correspondence Document maintenance / file review Six monthly administration review / checklist Filing of documents File reviews Updating checklists Bank account administration Preparing correspondence to close accounts Requesting bank statements Bank account reconciliations Correspondence with bank regarding specific transfers ASIC Form 524 and other forms Preparing and lodging ASIC forms including 505, 524, 911, etc Correspondence with ASIC regarding statutory forms ATO and other statutory reporting Notification of appointment Preparing BASs Completing group certificates Finalisation Notifying ATO of finalisation Cancelling ABN / GST / PAYG registration Completing checklists Finalising WIP Books and records / storage Dealing with records in storage Sending job files to storage The remuneration estimate may be summarised as follows: Assets Creditors Investigation Administration Hours Amount ($) 7, , , , Please note that the above is an estimate only. If costs exceed the estimate, I will advise creditors accordingly and seek further approval. Part 6: Statement of Remuneration Claim Resolutions to be put to creditors at the meeting convened for 18 June At the meeting of creditors convened for 18 June 2013, creditors will be asked to consider the following resolutions: Resolution 1: "That the remuneration of the Liquidators, as set out in the Remuneration Request Approval Report dated 30 May 2013 for the period from 27 July 2012 to 30 April 2013 be fixed in the amount of $107,722.00, plus any applicable GST, and may be paid."

41 Remuneration Request Approval Report 30 May 2013 Page 9 Resolution 2: "That the remuneration of the Liquidators, as set out in the Remuneration Request Approval Report dated 30 May 2013, for the period from 1 May 2013 to completion be fixed up to a maximum amount of $42, plus any applicable GST, but subject to upward revision by resolution of creditors, and that the Liquidators be authorised to make periodic payments on account of such accruing remuneration as incurred." Please note that further approval of the Liquidators remuneration will be sought in the future. Remuneration approved and drawn to date Set out below is a summary of the Liquidators remuneration approved and drawn to date: Period Amount Approved ($) Amount Drawn ($) 22 June 2012 to 18 July , , July 2012 to 27 July , , Part 7: Remuneration Recoverable from External Sources The Liquidators have not received any funding from external sources in respect of Liquidators remuneration. Part 8: Disbursements Disbursements are divided into three types: A, B1, B2. A B1 B2 disbursements are all externally provided professional services. These are recovered at cost. An example of an A disbursement is legal fees. disbursements are externally provided non-professional costs such as travel, accommodation and search fees. B1 disbursements are recovered at cost. disbursements are internally provided non-professional costs such as photocopying, printing and postage. B2 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 both variable and fixed costs. The relevant rates are set out below. Disbursement Type Advertising Couriers Mileage Reimbursement Photocopying (colour) Photocopying (mono) Photocopying (outsourced) Printing (colour) Printing (mono) Printing (outsourced) Charges (excluding GST) At cost At cost $0.67 per kilometre $0.50 per page $0.20 per page At cost $0.50 per page $0.20 per page At cost

42 Remuneration Request Approval Report 30 May 2013 Page 10 Postage Searches Storage and Storage Transit Telephone Calls At cost At cost At cost At cost 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. Disbursements incurred to date are shown in the summary of receipts and payments. Creditor approval for the payment of disbursements is not required. However, the Liquidators must account to creditors. Creditors have the right to question the incurring of disbursements and can challenge disbursements in court. Part 9: Report on Progress of the Administration The Remuneration Request Approval Report must be read in conjunction with the report to creditors dated 30 May 2013 which outlines the progress of the administration. Part 10: Summary of Receipts and Payments A summary of receipts and payments for the period 27 July 2012 to 30 April 2013 is attached as Annexure C in the Report to Creditors. Part 11: Information Sheet The partners of Ferrier Hodgson are, generally, members of the Insolvency Practitioners Association of Australia ( IPA ). Ferrier Hodgson follows the IPA Code of Professional Practice. A copy of the Code of Professional Practice may be found on the IPA website at An information sheet concerning approval of remuneration in external administrations can also be obtained from the IPA website. Part 12: Queries If you require further information in respect of the above, or have other queries, please contact Madeleine Tuck of this office on (02) prior to the creditors meeting. Dated: this 30 th day of May 2013 Ryan Eagle Liquidator

43 Annexure C Notice of Meeting Beechey Report to Creditors Report to Creditors B09: May 2013 Page 18

44 FORM 529 CORPORATIONS ACT 2001 Section 506(1)(F) Subregulation (2) Beechey Carriers Pty Limited (In Liquidation) ACN R & M Beechey Storage Pty Limited (In Liquidation) ACN RMB Equipment Pty Limited (In Liquidation) ACN Beechey Carriers Brisbane Pty Limited (In Liquidation) ACN Collectively referred to as the Group NOTICE OF MEETING OF CREDITORS NOTICE IS GIVEN that a general meeting of the creditors will be held at the offices of Ferrier Hodgson, Level 13, Grosvenor Place, 225 George Street, SYDNEY NSW 2000 on Tuesday, 18 June 2013 at 10:30am. AGENDA 1. To receive and consider a report from the Liquidators; 2. To consider a summary of receipts and payments of the Liquidators; 3. To fix or determine the remuneration of the Liquidators; 4. To fix or determine the future remuneration of the Liquidators; 5. To consider whether, pursuant to Section 477(2A) of the Act, creditors authorise the Liquidators to compromise a debt owed to any of the above companies; and 6. Any other business. Proxies to be used at the meeting should be lodged at the office of the Liquidator by 5:00pm the day prior to the meeting. In accordance with Regulations (1) of the Corporations Regulations, creditors will not be entitled to vote at the meeting unless they have previously lodged particulars of their claims against the Group with the Liquidators. DATED this 30 th day of May 2013 Ryan Eagle Liquidator

45 Annexure D Summary of Receipts and Payments Beechey Report to Creditors Report to Creditors B09: May 2013 Page 19

46 A B C Annexure D Summary of Receipts and Payments Beechey $ Receipts Accounts Receivable (Pre-Appointment) 4, Transfer from Administrator's Account 53, Debtors Subject to NAB Security 44, GEERS Liability 585, Plant & Equipment 135, Sales 103, Total Receipts 925, Payments Accounting Fees 3, Agent's Fees 4, Appointee Disbursements 13, Appointee Fees 136, Auctioneer's Charges GEERS Scheme Payment 489, GST Paid (Received) 96, Insurance 5, Labour Cost Funding Legal Disbursements Legal Fees 27, Motor Vehicle Expenses 2, PAYG Withheld 96, Postage Stamp Duty 1, Storage 4, Subcontractors 3, Sundry Expenses Total payments 886, Closing cash at bank as at 30 April ,183.70

47 Beechey Storage $ Receipts Transfer from Administrator's Account 2, Labour Cost Funding Total Receipts 2, Payments PAYG Paid (Received) 1, Superannuation Administration Fee Superannuation Paid (Received) Total payments 2, Closing cash at bank as at 30 April Carriers Brisbane $ Receipts Transfer from Administrator's Account 4, Plant & Equipment 6, Total Receipts 11, Payments Agent's Fees Appointee Disbursements Appointee Fees 3, GST Paid (Received) PAYG Paid (Received) 2, Superannuation Administration Fee Superannuation Paid (Received) 1, Total payments 9, Closing cash at bank as at 30 April ,492.01

48 RMB Equipment $ Receipts Transfer from Administrator's Account 49, Contributions from Sale of Assets 32, Plant & Equipment 4,018, Total Receipts 4,100, Payments Accounting Fees 3, Advertising 22, Agent's Fees 87, Appointee Disbursements 1, Appointee Fees 109, Commissions 3, Distribution to Secured Creditors (NAB) 2,880, Document Storage 2, GST Paid (Received) 336, Insurance 24, Legal Disbursements Legal Fees 26, Payout of Secured Creditor (BoQ) 100, Plant Hazard Report Expense Recovery and Transport Expense 12, Transfer of funds to Carriers Brisbane (Plant & Equipment) 6, Transport Expense Total payments 3,619, Closing cash at bank as at 30 April ,334.44

49 Annexure E Formal Proof of Debt Beechey Report to Creditors Report to Creditors B09: May 2013 Page 20

50 FORM 535 Corporations Act (2001) Subregulation (2) To the Liquidators of: FORMAL PROOF OF DEBT OR CLAIM (GENERAL FORM) Beechey Carriers Pty Limited (In Liquidation) ACN R & M Beechey Storage Pty Limited (In Liquidation) ACN RMB Equipment Pty Limited (In Liquidation) ACN Beechey Carriers Brisbane Pty Limited (In Liquidation) ACN (please indicate appropriate company) 1. This is to state that the company was, on 27 July 2012 and still is, justly and truly indebted to... (full name and address of the creditor and, if applicable, the creditor's partners. If prepared by an employee or agent of the creditor, also insert a description of the occupation of the creditor) for...dollars and... cents Particulars of the debt are: Date Consideration Sub Total $ GST $ Total Claim (incl GST) $ Remarks 2. To our knowledge or belief the creditor has not, nor has any person by the creditor's order, had or received any manner of satisfaction or security for the sum or any part of it except for the following: (insert particulars of all securities held. 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 $ Due Date 3. 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 our knowledge and belief, still remains unpaid and unsatisfied. 3. I am the creditor's agent authorised in writing to make this statement in writing. I know that the debt was incurred and for the consideration stated and that the debt, to the best of our knowledge and belief, still remains unpaid and unsatisfied.

51 DATED this day of, Signature of Signatory... NAME IN BLOCK LETTERS... Occupation... Address... Contact Phone Number... Address...

52 Annexure F Appointment of Proxy - Beechey Beechey Report to Creditors Report to Creditors B09: May 2013 Page 21

53 FORM 532 CORPORATIONS ACT 2001 BEECHEY CARRIERS PTY LIMITED (IN LIQUIDATION) ACN ( the Company ) Regulation *I/*We 1... of... a creditor of... appoint 2... or in his/her absence... *My/our *(i) general OR *(ii) special proxy 3 to vote at the meeting of creditors to be held on Tuesday, 18 June 2013 at 10:30am, or at any adjournment of that meeting, to vote (i) on all matters arising at the meeting; OR (ii) on each of the following kinds of resolution in the manner specified: For Against Abstain 1. A resolution that the remuneration of the Liquidators, as set out in the Liquidators Remuneration Request Approval Report dated 30 May 2013 for the period from 27 July 2012 to 30 April 2013 be fixed in the amount of $265,247.50, plus any applicable GST 2. A resolution that the remuneration of the Liquidators, as set out in the Liquidators Remuneration Request Approval Report dated 30 May 2013 for the period from 1 May 2013 to completion be fixed up to a maximum amount of $84,741.00, plus any applicable GST but subject to upward revision by resolution of creditors, and that the Liquidators be authorised to make periodic payments on account of such accruing remuneration. 3. A resolution that creditors authorise the Liquidators under Section 477(2A) of the Corporations Act 2001, to compromise a debt owed to the company from the former landlord for $150,000. I am an unsecured creditor and the total amount owed to me is $ OR I am a secured creditor and the total amount owed to me is $ * 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.

54 DATED this day of OR The Common Seal of 4 Signature 5 of individual or person 6 authorised by corporate resolution to was hereunto affixed in the represent the corporation presence of... Director... Secretary CERTIFICATE OF WITNESS 7 I,... of... certify that the above instrument appointing a proxy was completed by us 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. DATED this day of Signature of Witness... Description Place of Residence 4 The method of affixing the Common Seal is prescribed in Section 127(2) of the Corporations Act 2001 and, usually, the creditor corporation s constitution. 5 The signature of the creditor is not to be attested by the person nominated as proxy. 6 A corporation may only be represented by proxy or by an attorney appointed pursuant to Corporations Regulations and A respectively or, by a representative appointed under Section 250D of the Corporations Act Copy of authority/power of attorney to be annexed. 7 This certificate is to be completed only where the person giving it is blind.

55 Annexure G Appointment of Proxy RMB Equipment Beechey Report to Creditors Report to Creditors B09: May 2013 Page 22

56 FORM 532 CORPORATIONS ACT 2001 Regulation RMB EQUIPMENT PTY LIMITED (IN LIQUIDATION) ACN ( the Company ) *I/*We 1... of... a creditor of... appoint 2... or in his/her absence... *My/our *(i) general OR *(ii) special proxy 3 to vote at the meeting of creditors to be held on Tuesday, 18 June 2013 at 10:30am, or at any adjournment of that meeting, to vote (i) on all matters arising at the meeting; OR (ii) on each of the following kinds of resolution in the manner specified: For Against Abstain 1. A resolution that the remuneration of the Liquidators, as set out in the Liquidators Remuneration Request Approval Report dated 30 May 2013 for the period from 27 July 2012 to 30 April 2013 be fixed in the amount of $107,722.00, plus any applicable GST. 2. A resolution that the remuneration of the Liquidators, as set out in the Liquidators Remuneration Request Approval Report dated 30 May 2013 for the period from 1 May 2013 to completion be fixed up to a maximum amount of $42,278.00, plus any applicable GST but subject to upward revision by resolution of creditors, and that the Liquidators be authorised to make periodic payments on account of such accruing remuneration. I am an unsecured creditor and the total amount owed to me is $ OR I am a secured creditor and the total amount owed to me is $ * 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.

57 DATED this day of OR The Common Seal of 4 Signature 5 of individual or person 6 authorised by corporate resolution to was hereunto affixed in the represent the corporation presence of... Director... Secretary CERTIFICATE OF WITNESS 7 I,... of... certify that the above instrument appointing a proxy was completed by us 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. DATED this day of Signature of Witness... Description Place of Residence 4 The method of affixing the Common Seal is prescribed in Section 127(2) of the Corporations Act 2001 and, usually, the creditor corporation s constitution. 5 The signature of the creditor is not to be attested by the person nominated as proxy. 6 A corporation may only be represented by proxy or by an attorney appointed pursuant to Corporations Regulations and A respectively or, by a representative appointed under Section 250D of the Corporations Act Copy of authority/power of attorney to be annexed. 7 This certificate is to be completed only where the person giving it is blind.

58 Annexure H Creditor Information Sheet Beechey Report to Creditors Report to Creditors B09: May 2013 Page 23

59 Insolvency information for directors, employees, creditors and shareholders ASIC has 11 insolvency information sheets to assist you if you re affected by a company s insolvency and have little or no knowledge of what s involved. These plain language information sheets give directors, employees, creditors and shareholders a basic understanding of the three most common company insolvency procedures liquidation, voluntary administration and receivership. There is an information sheet on the independence of external administrators and one that explains the process for approving the fees of external administrators. A glossary of commonly used insolvency terms is also provided. The Insolvency Practitioners Association (IPA), the leading professional organisation in Australia for insolvency practitioners, endorses these publications and encourages its members to make their availability known to affected people. List of information sheets INFO 41 Insolvency: a glossary of terms INFO 74 Voluntary administration: a guide for creditors INFO 75 Voluntary administration: a guide for employees INFO 45 Liquidation: a guide for creditors INFO 46 Liquidation: a guide for employees INFO 54 Receivership: a guide for creditors INFO 55 Receivership: a guide for employees INFO 43 Insolvency: a guide for shareholders INFO 42 Insolvency: a guide for directors INFO 84 Independence of external administrators: a guide for creditors INFO 85 Approving fees: a guide for creditors Getting copies of the information sheets To get copies of the information sheets, visit ASIC s website at The information sheets are also available from the IPA website at The IPA website also contains the IPA s Code of Professional Practice for Insolvency Professionals, which applies to IPA members. Important note: The information sheets contain a summary of basic information on the topic. It is not a substitute for legal advice. Some provisions of the law referred to may have important exceptions or qualifications. These documents may not contain all of the information about the law or the exceptions and qualifications that are relevant to your circumstances. You will need a qualified professional adviser to take into account your particular circumstances and to tell you how the law applies to you. Australian Securities & Investments Commission, December 2008 Page 1 of 1