Annual Report to Creditors. Keeforce Holdings Pty Ltd ACN Fresh Produce Logistics Pty Ltd ACN

Transcription

1 Holdings Pty Ltd ACN Fresh Produce Logistics Pty Ltd ACN Produce Services Pty Ltd ACN Linehaul Pty Ltd ACN Pty Ltd ACN Services Pty Ltd ACN Frazerview Pty Ltd ACN (All In Liquidation) (Collectively referred to as the Group ) 17 May 2017

2 Table of Contents Section Page 1 Executive summary Annual meeting of creditors Summary of actions addressed during the liquidation Asset realisations Trade debtors ATO refunds Financed fleet asset sales NAB accounting Creditors Superannuation Other creditors Don Forsyth Personal Insolvency Agreement (PIA) Receipts and payments Matters to be carried out to complete the liquidations Administrators remuneration Liquidators remuneration Estimated return to creditors Secured creditor Priority employee creditors Unsecured creditors Further queries Glossary of terms May 2017

3 Annexure A B C D E Notice of meeting of creditors Appointment of proxy Formal proof of debt Receipts and payments Remuneration approval request reports 17 May 2017

4 1 Executive summary I refer to the appointment of Brendan Richards, Will Colwell and I as liquidators of the Group on 4 March 2015 and our report to creditors dated 3 June Pursuant to Section 508(3) of the Act, I now take this opportunity to report to you on the liquidation of the Group of companies and, in particular, as to: An account of the liquidators acts and dealings in the conduct of the winding up of the Group since my report dated 3 June 2016; The liquidators acts and dealings that remain to be carried out to complete the winding up; Estimated return to creditors from the winding up; and An estimate of when the winding up will be completed. I estimate the following returns to priority and unsecured creditors: Priority (employee) creditors Unsecured Creditors Entity c / $ c / $ Already paid in full 16.0 Linehaul N/A 16.0 Holdings N/A 1.0 Services RDOs, wages and superannuation 76 Leave entitlements, notice, redundancy Nil Nil Frazerview N/A Nil Fresh Produce Logistics N/A 56.0 Produce Services All entitlements To be eligible to receive a dividend, if they have not already done so, unsecured creditors of, Linehaul, Holdings, Fresh Produce Logistics and Produce Services are required to lodge a Form 535 Proof of Debt, and all supporting documentation. The dividends to employees and unsecured creditors cannot be paid until clearance is received from the ATO. Assuming ATO clearance is obtained during July, the dividend would not actually be paid until September Following the distribution of a dividend to unsecured creditors, the liquidations should be finalised in November The high level matters to finalise are summarised in section May 2017 Page 1

5 2 Annual meeting of creditors A concurrent meeting of creditors of each Group company, will be held on Friday, 2 June 2017 at 9:30am at the offices of Ferrier Hodgson, Level 7, 145 Eagle Street, Brisbane, Queensland. Enclosed as Annexure A is a Notice of Meeting of Creditors. At this meeting, creditors will be requested to approve the remuneration of the liquidators. Also enclosed is a Form 532 Appointment of Proxy (Annexure B) and a Form 535 Proof of Debt (Annexure C) for the purposes of voting at the meeting. Creditors should ensure that the Appointment of Proxy and Proof of Debt is lodged before 4.00pm on 31 May 2017 to be eligible to vote at the meeting. A proof of debt is not required if one has already been lodged. However new proxies are required for the meeting. Your attendance at this meeting by special proxy or via telephone (if convenient) would be appreciated to satisfy quorum requirements. 3 Summary of actions addressed during the liquidation Since my report dated 3 June 2016, the following matters have been attended to: Finalising the realisation of the Group s trade debtors; Liaising with the directors regarding debtor collections and updating the companies financial statements; Reconciling the companies financials including related entity loans; Preparing revised BAS lodgements and liaising with the ATO to recover refunds and obtain amended PODs; Extensive liaison with the ATO to obtain proofs of debt regarding unpaid superannuation; Extensive review and reconciliation of NAB s accounting of their realisations and debt reduction from the sale of financed assets and liaising with NAB to finalise the accounting; Reconciling secured creditors realisations and debts owed and guarantees given to calculate their unsecured claims; Adjudicating on PODs and liaising with unsecured creditors regarding rejected claims; Communicating with creditors of the Group; Attendance to statutory requirements. 4 Asset realisations 4.1 Trade debtors The collection of the remaining trade debtors has been finalised and involved the monitoring and following up agreed payment plans with two major debtors. The Liquidator s collected circa 93% of debtors which were outstanding as at 28 January This result remains materially consistent with our forecast at 3 June May 2017 Page 2

6 Company Outstanding at appointment Collections since last report Total collections Forecast collections at last report Increase / (shortfall) against forecast $ $ $ $ $ 3,129,000 2,507 3,040,878 3,040,871 7 Linehaul 944, , ,231 - Fresh Produce Logistics 1,387, ,507 1,076,367 1,076,367 - Total 5,460, ,014 5,052,476 5,052,469 7 Collections of debtors for services provided after our appointment as Voluntary Administrators total circa $1.45 million and are $231 lower than our forecast at 3 June Company Collections since last report Total collections Forecast collections at last report Increase / (shortfall) against forecast $ $ $ $ - 676, ,387 - Linehaul - 582, ,063 - Fresh Produce Logistics 1, , ,720 (231) Total 1,502 1,451,939 1,452,170 (231) 4.2 ATO refunds With the assistance of Vicki Forsyth and Ben Toms, we prepared revised BAS lodgements for and Fresh Produce Logistics for the two quarters preceding our appointment, being December 2014 and March These were lodged on 15 November In this regard we received an additional refund for of $25,433. These refunds comprised adjustments in relation to the GST from irrecoverable pre-appointment debtors and pre-appointment creditor liabilities which have not previously been claimed. On 29 November 2016, the ATO requested further information regarding the revised BAS for Fresh Produce Logistics for the quarter ending 31 March I confirmed the nature of our appointment and advised the revision was lodged to reflect unpaid pre-appointment trade creditors and irrecoverable pre-appointment trade debtors. On 22 December 2016, the ATO advised me of their intention to audit the March 2015 quarter BAS. On 20 January 2017, the ATO issued a notice to our office confirming the audit. On 7 February 2017, I wrote to the ATO in response to all queries detailed in their audit notice, including a business profile questionnaire, documents supporting our adjustment calculations and my justification for lodging a revised BAS for the quarter ended 31 March On 15 February 2017, the ATO requested further information regarding written off amounts relating to irrecoverable trade debtors and accrued expenses relating to unpaid suppliers. On 28 February 2017 we responded to the ATO s request. On 7 March 2017 the ATO requested a list of suppliers who had been unpaid to 27 January 2015 and a list of suppliers paid between 9 May 2014 and 27 January May 2017 Page 3

7 On 13 March 2017, I wrote to the ATO providing a list of suppliers, including outstanding balances unpaid at 27 January However, I also requested an explanation as to the relevance of providing a list of suppliers paid between 9 May 2014 and 27 January 2015, given: this period stretched over six months prior to the BAS period under review, our revised claim comprised the addition of a single unpaid creditor and irrecoverable debtors, and the liquidation would incur significant costs to determine what had been paid and the date of payment. On 15 March 2017 the ATO advised they had finalised the audit and would not be taking any further action. The revised BAS lodgements for FPL reduced the ATO s total claim as an unsecured creditor by $31,382. We have not prepared revised lodgements for Linehaul, because the estimated refund of $800 was less than the cost of completing the lodgement and would not provide a net benefit to creditors. 4.3 Financed fleet asset sales I confirm that the full amount of the unpaid surplus proceeds of $72, were recovered from Toyota and paid to Holdings on 27 July NAB accounting Since our report dated 3 June 2016, we continued our review of NAB s accounting of the payout of the secured debt owed by the Group. After NAB paid surplus funds of $193, back to ($96,746.75) and Linehaul ($96,746.74) on 23 September 2015, we followed up NAB for an accounting. A high level accounting was received on 23 October We spent considerable time, both prior to our report dated 3 June 2016 and subsequent, reconciling: pre-appointment sales by Pickles post-appointment sales by Pickles insurance claims the company fleet registers pickles valuation NAB statements of account NAB s initial accounting of a surplus of $193, On 4 August 2016, based on information that had been provided to us at that time, I claimed a refund from NAB of $535, regarding: $251, paid by Pickles to NAB (from pre-appointment sales), not included in NAB s accounting A GST deduction of $607, in NAB s accounting, with NAB statements only showing GST paid of $101, May 2017 Page 4

8 In September 2016 NAB provided further information: confirming that the proceeds of the pre-appointment sales had been credited to the company s account regarding GST journals passed, not recorded in NAB s statements In October 2016, I responded to NAB claiming that their GST treatment of certain transactions was incorrect and that $80, should be refunded. An interim response was provided by NAB and I responded on 2 November claiming that $90, should be refunded. Detailed information was subsequently provided by NAB which reduced my refund claim to $29, Upon reviewing further information provided by NAB and holding a meeting with NAB, which further outlined the GST journals which cross referenced Pickles sales results and the further analysis needed to be performed for the transactions in question, on a costs versus benefits basis, I elected not to pursue the refund claim any further. 5 Creditors 5.1 Superannuation On 9 June 2016, we wrote to the ATO requesting PODs for Produce Services and Services regarding unpaid superannuation for quarters ending 31 December 2014 and 31 March Our letters provided a detailed listing with every employee s claim amount for each quarter. On 4 October 2016 we again wrote to the ATO as they had failed to provide the requested documentation. On 10 October 2016, the ATO submitted PODs for both companies which recorded inaccurate amounts. On 5 November 2016 the ATO issued further PODs for both entities. The POD for Produce Services and the associated breakdown by employee reconciled with the company s records, however the POD for Services was still incorrect. On 11 November 2016 we wrote to the ATO to advise of the rejection of the Services POD and requested a breakdown of the SGC calculation. Following this we lodged a complaint with ATO regarding the inaccurate and untimely PODs. On 25 November 2016 we were contacted by ATO complaints. On 12 January 2017 a third Services POD was received, however included a number of incorrect employees and excluded one employee. The POD also overstated superannuation amounts for three employees. Given these discrepancies, the SGC calculations also needed to be revised. On 8 March 2017 we wrote to the ATO requesting these errors be amended, and the SGC calculations be updated to reflect the updated employee listings and superannuation guarantee amounts. On 11 April 2017, a fourth POD was submitted for Services, however it did not incorporate all changes requested in our letter dated 8 March On 28 April 2017, the ATO issued an amended assessment of SGC, however it still did not reconcile to our records. I believe the discrepancy is because the ATO s total excluded one employee, however, without a full employee listing from the ATO I am unable to reconcile their claim to our records. 17 May 2017 Page 5

9 On 16 May 2017, we issued a further follow up letter to the ATO requesting they provide an amended assessment of superannuation guarantee charges for the December 2014 quarter, amended individual superannuation guarantee shortfall listings for both the December 2014 quarter and March 2015 quarter and an amended Proof of Debt within 7 days. Despite our many follow ups, we still have not received a final listing of outstanding superannuation for each employee, which ultimately determines the payments which will be made to employees. Our recent discussions with the ATO indicate this should be finalised shortly. [Intentionally left blank] 17 May 2017 Page 6

10 5.2 Other creditors We have now adjudicated on all PODs received. The admitted claims are summarised in the below table and following subsections. PODs admitted Report reference Linehaul Holdings Services Frazerview Fresh Produce Logistics Produce Services Total Trade creditors (including landlords) ,630-28, ,006-50,290 11, ,265 Inter-group creditors ,416,291 1,625,446 2,638,620 1,662,288 17, , ,183 11,561,554 Related creditors ,511,970 1,090, ,474-67, ,242,667 ATO , , ,063 Financier shortfalls ,481,700 2,218,654 2,538, ,243 1,667, ,546,657 Total estimated creditors 11,015,592 4,958,755 5,777,914 2,416,537 1,753, , ,082 27,322,205 We note that these balances are subject to the extent of final PODs received and, in the case of certain related creditors, accounting and legal advice Trade creditors (including landlords) To date, 59 trade creditors, including landlords, totalling $810,265, have been admitted which is circa $920k less than our estimate of trade creditors on 3 June Claims of $204,928 were withdrawn and claims of $44,588 were rejected. The remaining variance is the difference between our forecast based on the companies records, and the actual PODs received. [Intentionally left blank] 17 May 2017 Page 7

11 5.2.2 Intergroup creditors With the assistance of Vicki Forsyth, we have reconciled the companies accounting files and brought the Group s financials up to date as at the date of our appointment on 28 January We now confirm the finalised claims of intergroup creditors totalling $11.5m, summarised follows. Linehaul Holdings Services Frazerview Fresh Produce Logistics Produce Services Total $ $ $ $ $ $ $ $ 1,625,446 3, ,870 1,940,175 Linehaul 2,248,620 2,248,620 Holdings 1,022,712 1,643,700 14, ,287 2,828,790 Services 3,335,795 33,026 3,368,821 Frazerview 0 Fresh Produce Logistics 57, ,000 18, ,372 Produce Services 676, ,776 Total 4,416,291 1,625,446 2,638,620 1,662,288 17, , ,183 11,529,554 Overall intergroup creditor claims have decreased by $56,592 since our report dated 3 June We note our report dated 3 June 2016 recorded FPL s claim against at $1,135,327 and s claim against FPL at $1,020,951. Given this results in a net claim by FPL of $114,376 against, FPL s claim against has only decreased by $56,592. The reduced claim is due to additional intergroup charges which had not been included in our estimates at 3 June Similarly, we reported Frazerview s claim against at $111,520 and s claim against Frazerview at $115,379. This results in a net claim by of $3,859 against Frazerview and hence there has been no net change. 17 May 2017 Page 8

12 5.2.3 Related creditors The claims of related creditors have increased by $964,318, to $6.2m, summarised as follows. Related creditors at 10 May 2017 $ Linehaul $ Holdings $ Frazerview $ Total $ D & V Superannuation Fund 4, ,975 Jabaji Pty Ltd 447, ,673 Toriadore Pty Ltd 294, ,703 Fullforce (QLD) Pty Ltd (In Liquidation) 678,813-53, ,994 Sailnewt Pty Ltd 634,054 1,587,834-40,165 2,262,053 Gooforce Pty Ltd 1,355, ,355,980 Don Forsyth 544, ,293 27,543 1,091,605 Michael McKee 18, ,002 Total 3,978,968 1,587, ,474 67,708 6,206,984 The claims of Fullforce, Sailnewt and Gooforce in have increased since our last report by a total of $466,998 and Sailnewt s claim in Linehaul has increased by $497,320. These increased claims relate to the beneficiaries unpaid present entitlement to FY14 and FY15 profits, which were calculated following our reconciliation and finalisation of the Group s financial statements. Tax advice from PWC regarding confirms the beneficiaries are entitled to the distribution of profits. Further advice is required in respect of Linehaul. My formal adjudication of these claims is subject to the receipt of legal advice on whether the unpaid present entitlements represent a subordinated unsecured claim. If so, they will rank for payment behind all other creditors and only receive a dividend if all other creditors are paid in full ATO The ATO have only lodged PODs for Linehaul and Produce Services. Based on BAS and Income Tax lodgements for the pre-appointment period and updated financial statements to the date of our appointment on 28 January 2015, we estimate the following liability to the ATO. Company Liability to ATO (excluding priority claims) ($) Linehaul 24,141 Holdings 318,952 Fresh Produce Logistics 377,998 Produce Services 136,922 Total 858,013 There is no ATO liability owed by Financiers As reported on 3 June 2016, equipment financiers are entitled to prove as unsecured creditors for any shortfall following the realisation of their secured property. We have admitted the following claims. 17 May 2017 Page 9

13 Financier Linehaul Holdings Total ANZ 254, , , ,070 CBA 708, , ,349 1,862,001 GE Commercial 557, , ,993 1,673,979 MBFS 441, , ,282 1,323,846 Paccar Financial 437, , ,137 1,311,411 Volvo Finance 82,250 82,250 82, ,750 Total 2,481,701 2,218,655 2,481,701 7,182,057 We note that CBA, GE Commercial and Volvo Finance have claims against Services and Frazerview and Paccar Financial has a claim against Frazerview, however we have not adjudicated on these claims as there is no dividend payable from either of these companies. With the exception of Volvo, all financiers claims have decreased since 3 June This follows our extensive reconciliation of the financed asset realisations and corresponding guarantees, resulting in a decrease of $52,737 for both and Holdings and $315,783 for Linehaul, which decreases total creditor claims by $421, Don Forsyth Personal Insolvency Agreement (PIA) Section 7.2 of our report to creditors dated 3 June 2016 concluded that the revised PIA, rejected on 28 April 2016 by the related and associated creditors, remained under consideration. Given the weight of votes controlled by the related and associated creditors and a lack of will on the part of the unrelated creditors, we elected not to pursue the matter further. An interim dividend of $2, was received by Services Pty Ltd on 23 December On 4 May 2017, we received notice of a proposed variation of the PIA, essentially replacing the future dividend receipts from the Group ($117,071) with a financial contribution ($95,000) by Vicki Forsyth within 7 days of creditor approval. The meeting of creditors to vote on the further variation of the PIA is scheduled for 19 May A dividend from the PIA should follow reasonably soon thereafter. Given our views expressed above regarding the voting power of the related and associated parties, we do not intend to incur further costs in relation to this matter. 7 Receipts and payments A summary of the receipts and payments of each Group company from the commencement of the liquidation to 30 April 2017 is attached as Annexure D. As at 30 April 2017, funds totalling $3,098,169 are held, summarised as follows: Entity Cash balance at 30 April 2017 ($) 1,050,057 Linehaul 361,916 Holdings 1,007,763 Services 3,026 Frazerview 4,354 Fresh Produce Logistics 666,425 Produce Services 4,628 Total 3,098,169 I note that $2,417, of the above balances are held in various interest bearing term deposit accounts. 17 May 2017 Page 10

14 8 Matters to be carried out to complete the liquidations The following matters are required to be addressed to finalise the liquidations. The listing is not exhaustive. Preparation of report and holding annual meeting of creditors Linehaul Holdings Services Frazerview Fresh Produce Logistics Produce Services Addressing enquiries from employees Addressing enquiries from creditors Addressing SGC claims and adjudicating Proofs of Debt from the ATO Obtaining tax clearance from the ATO Payment of dividend to employees Adjudicating PODs and payment of dividend to unsecured creditors Attending to statutory lodgements Final meetings of creditors 17 May 2017 Page 11

15 9 Administrators remuneration The following table summarises the remuneration approved by creditors at the second meeting of creditors on 4 March 2015 and the extent to which same has been paid or remains unpaid. Voluntary Administration Fees Linehaul Holdings Services VA Fees Approved Actual VA Fees Incurred Fees Paid 30/1-13/2 Estimate Total 30/1-13/2 14/2-4/3 Total to Date $ $ $ $ $ $ $ 5, , , , , , , , , , , , , , , , , , , , , , , , , , , , Fresh Produce Logistics Produce Services 158, , , , , , , , , , , , , Frazerview 6, , , , , , , Total 698, , ,151, , , ,002, , As noted above, actual Voluntary Administration fees were $149,205 less than the fees approved, and all Voluntary Administration fees, except for Produce Services fees of $13,386, have been paid. 10 Liquidators remuneration The following table provides a summary of the Liquidators remuneration to completion of the liquidation. Liquidation Fees Total remuneration approved 24 June 2016 Remuneration paid to 30 April 2017 Remuneration incurred to 30 April 2017 but not paid Estimated remuneration from 1 May 2017 to completion Total liquidation remuneration $ $ $ $ $ 380, , , , , Linehaul 70, , , , , Holdings 180, , , , , Services 165, , , , , Fresh Produce Logistics 215, , , , , Produce Services 100, , , , Frazerview 40, , , , , Total 1,151, , , , ,272, At the meeting of creditors on Friday, 2 June 2017, the Liquidators will be seeking approval of additional remuneration for, Holdings, Services and Fresh Produce Logistics. Please refer to our Remuneration Approval Request Reports at Annexure E for details of the key tasks undertaken throughout the course of the liquidation. 17 May 2017 Page 12

16 11 Estimated return to creditors 11.1 Secured creditor As discussed in our report dated 3 June 2016, CBA has a residual secured claim against Frazerview of $816,831 in respect of their AllPAAP. We now expect that there will not be any further distribution to CBA. The changed position is a result of the set-off of Frazerview s debt to against its claim as a debtor Priority employee creditors Priority employee creditors of have been paid in full. There are sufficient funds in Produce Services to enable a dividend of 100 cents in the dollar in respect of the priority entitlements of employees. There will be sufficient funds in Services to enable a dividend to priority employees of 76 cents in the dollar in respect of unpaid wages, RDOs and Superannuation. No dividend is anticipated in respect of annual leave, long service leave, pay in lieu of notice, or redundancy entitlements. We note that the DEEWR provided funding in Produce Services and Services under the FEG Scheme in relation to eligible employee claims for wages and RDOs, leave entitlements, payment in lieu of notice and redundancy. FEG will be entitled to the dividends which are payable in respect to the funds they advanced to employees for these claims. Accordingly, FEG will recover the full amount of their funding in Produce Services, but in Services, only the amount that FEG has funded for wages and RDOs. We also note that all dividends in respect of unpaid superannuation and the SGC will be paid to the ATO, which will distribute the funds to employee superannuation funds Unsecured creditors Insufficient funds have been realised to permit a dividend to unsecured creditors of the following companies: Services Pty Ltd (In Liquidation) Frazerview Pty Ltd (In Liquidation) Sufficient funds have been realised to pay the following estimated dividends: Entity 16.0 Linehaul 16.0 Holdings 1.0 Fresh Produce Logistics 56.0 Produce Services 31.0 The table on page 15 provides detailed calculations of the above dividends. The analysis starts with cash at bank and term deposits as at 30 April 2017 and adds estimated plant and equipment recoveries, right of subrogation recovery for and Linehaul from Holdings, and recoveries from unreasonable director-related transactions. Deductions are then incorporated regarding the unpaid Administrators and Liquidators remuneration and disbursements, and priority employee entitlements to calculate the funds available for distribution before intercompany dividend recovery. c/$ 17 May 2017 Page 13

17 Our dividend calculation also incorporates a bad debt increasing adjustment, which liquidators are required by the ATO to perform when paying a dividend to creditors of less than 100 cents in the dollar, where the company(s) in liquidation accounted on a non-cash (accruals) basis, which was the case for the Group. The effect of the adjustment is to slightly decrease dividends to other creditors. The table then incorporates the outcome of our detailed analysis of intergroup dividends that arise from the intergroup loan balances, which also includes the full recovery from Holdings to both and Linehaul of the balance funds owed under their right of subrogation claims. [Intentionally left blank] 17 May 2017 Page 14

18 Group - Cash Waterfall Linehaul Holdings Services Frazerview Fresh Produce Logistics Produce Services Cash at bank and term deposits at 30 April ,050, ,916 1,007,763 3,026 4, ,425 4,628 3,098,169 Interest 2,500-2, ,500-6,500 Loan repayment (post-appointment) 8,057 (600) (5,160) (11,177) - (1,440) (720) (11,040) Plant and equipment recoveries - - 1, ,500 BAS refunds 1,305-1, ,863 Right of subrogation recovery / (payment) 483, ,581 (967,161) - Unreasonable director related transactions , ,730 Voluntary Administration fees and disbursements (13,893) (13,893) Liquidators fees (to 30 April 2017) (11,608) (3,860) (5,348) (98,470) (19,143) (6,702) (42,251) (187,381) Liquidators fees (1 May 2017 to finalisation) (55,000) (33,650) (35,000) (40,000) (1,000) (45,000) (55,000) (264,650) Disbursements, PWC and legal fees (4,500) (4,000) (1,000) (5,000) (200) (1,000) (4,500) (20,200) Employee entitlements (2,070,115) - - (69,396) (2,139,511) Funds available for distribution to unsecured creditors - before intergroup dividend recovery 1,474, ,386 - (2,144,354) (15,989) 613,783 (181,131) 550,088 Funds recovered from intergroup dividends 435,466 98,128 77, ,082-14, ,772 1,575,114 11,482,59 5,456,075 6,035,141 2,953,098 1,758,540 1,105, ,082 29,431,589 Total unsecured creditors 0 ATO debt increasing adjustment 47, ,973 - Estimated dividend (c/$) Nil Nil Total 17 May 2017 Page 15

19 Despite increased costs to date and the further costs to finalise the liquidations, the estimated dividends for Linehaul and Holdings are consistent with our 2016 forecasts while Fresh Produce Logistics and Produce Services have both improved from our previous report as summarised in the table below. Entity February 2015 Current Change since 3 June 2016 Low High position 3 June 2016 Nil Linehaul Nil No change Holdings Nil Nil Services Nil Nil Nil Nil No change Frazerview Nil Nil Nil Nil No change Fresh Produce Logistics Nil Produce Services Nil Nil The dividend has decreased by 2.0 cents in the dollar, since our estimate at 3 June This is largely attributable to a lower recovery from intergroup dividends given no longer has a claim in Fresh Produce Logistics, as reported in section The increase in Fresh Produce Logistics is largely attributable to a decrease in the total value of creditor claims, particularly by, which consequently provides a greater intergroup dividend recovery for Produce Services. 12 Further queries We will issue a further report to creditors in the event that any significant matters come to our attention before the next annual report is due. Should you have any questions, please contact Campbell Munro of this office on (07) Dated this 17 th day of May 2017 Tim Michael Liquidator 17 May 2017 Page 16

20 Glossary of terms Abbreviation ACN Description Australian Company Number Act The Corporations Act 2001 ANZ ASIC ATO CBA DE Directors ERV FEG Fresh Produce Logistics FY GE Group GST Holdings Linehaul Liquidators MBFS POD RATA SGC Volvo Australia and New Zealand Banking Limited Australian Securities and Investments Commission Australian Taxation Office Commonwealth Bank of Australia Limited Department of Employment Donald Forsyth and Michael McKee Estimated Realisable Value Fair Entitlements Guarantee Fresh Produce Logistics Pty Ltd (In Liquidation) Financial Year GE Commercial Pty Ltd Pty Ltd (In Liquidation) Linehaul Pty Ltd (In Liquidation) Services Pty Ltd (In Liquidation) Holdings Pty Ltd (In Liquidation) Fresh Produce Logistics Pty Ltd (In Liquidation) Produce Services Pty Ltd (In Liquidation) Frazerview Pty Ltd (In Liquidation) Goods and Services Tax Holdings Pty Ltd (In Liquidation) Pty Ltd (In Liquidation) Linehaul Pty Ltd (In Liquidation) Will Colwell, Brendan Richards and Tim Michael Mercedes-Benz Financial Services Proof of debt Report as to Affairs Super Guarantee Charge Volvo Finance Australia 17 May 2017 Page 17