November News Digest

01 December 2017

The following are summaries of media stories related to business turnaround and insolvency in Australia during November 2017.


AUSTRALIA

PROPERTY AND CONSTRUCTION

Subbies have failed builders in their sights

25 November 2017

The Sunshine Coast Daily reports that “a returned Palaszczuk government would fund a public examination in court of those in charge of two building companies that collapsed and left unsecured creditors exposed to the tune of $38 million. Housing Minister Mick de Brenni has made the commitment in a letter to Subcontractors' Alliance head Les Williams who has pursued security of payment for subbies since the collapse and subsequent liquidation of Walton Construction in 2013.”


Ostwald Failure: 210 more workers face the sack

24 November 2017

The Chronicle reports that “more than 200 Ostwald Bros employees are facing the sack, with administrators of the embattled civil construction company to recommend the company be liquidated at a creditors' meeting next week.”


Coombs Barei Constructions directors paid themselves $10,000 each before firm folded in “clear breach” of duty

24 November 2017

The Advertiser reports that “the directors of failed builder Coombs Barei Constructions used taxpayer funds to pay themselves and their staff ahead of subcontractors just days before their firm collapsed owing $6.5 million, a creditors’ meeting heard.”


Imagebuild Group: Director of builder that went bust fails to provide records because of 'mental conditions'

17 November 2017

ABC reports that “the director of a building company that collapsed owing $20 million has failed to provide records to the firm's liquidator, claiming he cannot cooperate because of "mental conditions". It has also been revealed that the company, Melbourne-based Imagebuild Group, was leasing a number of luxury cars and motorcycles when it went into liquidation.”


Chinese-linked building firm CRCG-Rimfire goes into voluntary administration

16 November 2017

The Courier Mail reports that “a Chinese construction giant’s attempts to enter the Queensland building market has ended in failure less than two years after its launch. CRCG-Rimfire, a joint venture between China Railway Construction Group and local Brisbane building firm Rimfire Constructions, on Thursday appointed a voluntary administrator after months of uncertainty about its future.”


Walton Construction director aware firm was insolvent months before collapse, liquidator's report claims

9 November 2017

ABC reports that “the liquidator of a collapsed construction giant has found evidence it says indicates the company's director and founder knowingly traded while insolvent, according to a confidential report obtained by the ABC. Walton Construction operated in Victoria, Queensland and New South Wales, and was placed into voluntary administration in October 2013 owing tens of millions of dollars to more than 1,000 subcontractors and suppliers, including plumbers and landscapers.”


Leaked emails reveal unpaid highway workers' long fight

1 November 2017

The Northern Star reports that “unpaid Pacific Highway upgrade sub-contractors claim the Roads Minister was "passing the buck" over outstanding wages to workers after a primary contractor entered voluntary administration.”


MINING

Winmar Resources wields cost-cutting axe as it hunts for new project

15 November 2017

Stockhead reports that “embattled minnow Winmar Resources remains confident of finding a new flagship project as it seeks to slash costs including pulling out of a joint venture with collapsed Kimberley Diamonds.

Winmar (ASX:WFE) is reducing staff salaries and director fees by 50 per cent to stretch its recent $492,000 placement and rights issue. The cost reductions kick in from December 1.”


Bounty acquires Cook Colliery

14 November 2017

Australia’s Mining Monthly reports that “Bounty will settle the acquisitions for $31.5 million, with $6.7 million paid on completion and the balance deferred and paid over 18 months. The acquisitions include all the assets of Caledon and Blackwater, except for physical property associated with the Minyango project. Caledon was placed into voluntary administration in May following a water inundation event that fully submerged the longwall at the Cook Colliery.”


MinRes swoops on Empire assets

9 November 2017

Business News WA reports that “Mineral Resources has acquired Empire Oil & Gas’s Perth Basin assets. Including the Red Gully processing plant, just more than a month after the energy junior entered administration.”


Pilbara contractor will fight its way out of mire

1 November 2017

National Indigenous Times reports that “Pilbara-based Eastern Guruma contracting company, which has multi-million-dollar projects with some of the biggest names in mining, is expected to face a significant restructure after being placed in voluntary administration with unspecified debts. A team of administrators was this week poring over the books of the company, which is owned by members of the Eastern Guruma traditional owners in WA’s Pilbara and which has interests primarily in the mining and pastoral sectors.”


RETAIL

OrotonGroup tipped to go private after strategic review

28 November 2017

The Australian Financial Review reports that “OrotonGroup's days as a public company appear to be numbered as the founding Lane family makes a final decision on whether to privatise the accessories retailer, sell its controlling stake or recapitalise or refinance the business. OrotonGroup shares have been halted from trading until Thursday when the board is expected to announce the outcome of a six month long strategic review.”


Aussie fashion label Lover placed in voluntary administration

28 November 2017

The Daily Telegraph reports that “Aussie fashion label Lover has been placed in voluntary administration.

Founded out of Bondi Markets by designers Susien Chong and Nic Briand in 2001, the label quickly became part of the Aussie fashion scene with designs coveted by Beyoncé, Jennifer Lopez, Alexa Chung, Miranda Ker. Ferrier Hodgson partners Morgan Kelly and Ryan Eagle have been appointed as voluntary administrators.”


Amazon: Perth fashion retailer in dispute with US giant collapses

22 November 2017

The Australian reports that “a small Perth-based fashion retailer locked in a trademark dispute with US giant Amazon over use of the branding “Glamazon” has collapsed into voluntary administration tonight, placing in doubt the future of 11 stores and 80 employees just weeks out from Christmas. Live Clothing, one of Western Australia’s leading fashion retailers, was put into administration today”.


Luxury bridal house in Claremont, Pallas, joins WA streetwear chain Live Clothing in voluntary administration

23 November 2017

The West Australian reports that “at least 100 brides-to-be around the country are in the throes of a pre-nuptial frock emergency after luxury Perth bridal house Pallas went into voluntary administration. It was another dark day for Perth retail yesterday with 23-year-old WA streetwear chain Live Clothing also going into the hands of external administrators.”


Fonebiz blames $3.7m collapse on vendors going direct

14 November 2017

CRN reports that “Australian mobile phone repair business Fonebiz blamed its collapse on vendors taking repairs in-house and making it easier for competitors to gain accreditation. Fonebiz entered voluntary administration last month after 22 years in business. Its 38 staff were stood down. The company previously had locations in Sydney, Wollongong and Auckland, and counted Microsoft, Samsung, Lenovo, Sony, Nokia, HTC, LG and Motorola among its partners.”


PastaCup fined $100,000 for franchising code breach after ACCC action: Why disclosure matters

13 November 2017

Smart Company reports that “the consumer watchdog has secured $100,000 in penalties against food chain PastaCup and $50,000 against its co-founder after taking Federal Court action last year over claims disclosure documents given to potential franchisees breached the Franchising Code.”


The Reject Shop is more satisfying than Dimmeys

3 November 2017

Roy Morgan reports that “The Reject Shop is again Australia’s leading discount variety store with a customer satisfaction rating of 85.4% in September virtually unchanged from a year ago in 2016 and down only slightly since September 2015 – down 1.2%.”


Brand in liquidation wants to be the next FCUK

2 November 2017

The Ragtrader reports that “liquidators for an IT company are hoping to sell off its trademark to an unexpected sector: fashion. Brooke Bird partner Adrian Hunter, whose firm is handling the liquidation of Uglii Corporation, is pushing for a fashion brand to swoop up the trademark.”


TopShop, Forever21 exiting Brisbane, Westpac looks to replace

1 November 2017

The Australian Financial Review reports that “international retailers Forever 21 and Top Shop are in the final stages to abandon their Queen Street Mall and Elizabeth Street leases in the heart of Brisbane's CBD after the forecast strength in retail did not meet expectations. Westpac is understood to be close to striking a deal on part of the prime mall fronting space that Forever 21 is giving up.”


Australian online retailer The Iconic to stock Topshop

1 November 2017

The Sydney Morning Herald Reports that “Topshop, which has had a horrid year thanks to the collapse of the Australian franchise and those plastic jeans, has found a saviour in one of Australia's biggest online retailers. From October 31, The Iconic will stock Topshop's denim and menswear ranges, with womenswear on sale from November.”


LOGISTICS

Compensation arguments delaying sale of Basslink cable

3 November 2017

The Australian reports that “the sale process of the Basslink underground power cable may not get under way for a few months yet, sources say. Its owners are thrashing out details over compensation payments for its use with the Tasmanian government body, Tas Hydro, after the cable broke and was out of action for a six-month period.”


TOURISM and HOSPITALITY

RSL loses another CEO

24 November 2017

InDaily reports that “the RSL announced today that Corey Starkey had resigned “due to personal reasons”.

He stepped into the role on an interim basis after the resignation of his predecessor Julia Langrehr earlier this year, amid a damaging rift with the then-board. A succession of board resignations soon followed, before the league was placed in voluntary administration.”


Naracoorte's Kincraig Hotel closes doors

21 November 2017

The Naracoorte Herald reports that “Naracoorte's historic Kincraig Hotel has closed its doors. The only pub in Naracoorte’s main street was forced to close the doors on Tuesday morning after administrators were called in to take control.”


Pattisez Civic shop shut after freakshake creators 'bit off more than we could chew'

17 November 2017

The Canberra Times reports that “the creators of Canberra's freakshake have admitted they "definitely bit off more than we could chew" after closing one of their Patissez shopfronts. Patissez Pty Ltd has gone into liquidation and its Civic cafe shut after board members voted to wind up the company in November.”


Last Drinks: Supermild liquidated, closes immediately

16 November 2017

The Adelaide Review reports that “late night venue Supermild has permanently closed, with liquidators visiting the site yesterday afternoon, says its owner Sam Lisy. “Supermild is no more” read a post to the venue’s Facebook page this morning, when Lisy announced her business had been put into liquidation. Sam Lisy tells The Adelaide Review that the end of Supermild was brought to a head by “an outstanding debt to a government agency” and that the decision was made yesterday in a court appointment to which she was running late.”


WA company behind three Perth restaurants owes more than $300,000 to landlords, suppliers

12 November 2017

The Sunday Times reports that “the company behind a trio of failed Perth restaurants is being pursued for more than $300,000 by a landlord and suppliers. Five summonses have been issued against Element WA, which ran The Trustee, Beaufort Local and Enrique’s School for to Bullfighting. They include a summons for $221,322.07 issued by Benjamin and Co which owns the buildings that house Beaufort Street Local and Enrique’s School in Highgate.”


Suitors hungry for Sumo Salad

6 November 2017

The Australian reports that “distressed investors like Allegro Funds Management are believed to be among the companies circling troubled retailer Sumo Salad, which was placed in voluntary administration earlier this year. The company, under the watch of Ferrier Hodgson, is currently at the centre of a sales process run by Allunga Advisory and it is understood that the net has been cast far and wide to find a buyer.”


Owner of the Trustee says the boom’s end spelled tough times for his CBD eatery

2 November 2017

The West Australian reports that “elegant Perth restaurant Trustee has been placed into voluntary administration, with mounting debt and last-minute discussions to renegotiate terms with its banks and landlord unable to overcome the restaurant’s worsening financial problems. Trustee and its stablemate, Beaufort Local in Highgate, remain open and trading as administrators work through the books and consider either a trade sale or closure.”


TECHNOLOGY

Avaya to emerge from bankruptcy by year's end

29 November 2017

ARN Net reports that “unified communications vendor, Avaya, expects to emerge from Chapter 11 bankruptcy in its home country by December after the United States Bankruptcy Court for the Southern District of New York approved its second amended reorganisation plan. Avaya said on 28 November the decision is likely to see it emerge from its restructuring process before the end of the year. The vendor declared bankruptcy in January, in an effort to transition from a hardware to a software and services company.”


Stargroup goes into Receivership

20 November 2017

Business News WA reports that “ATM operator Stargroup has been placed in the hands of a receiver after the loss-making company was unable to complete a restructure of its $9.1 million debt.”


Newly listed tech firm Veriluma opts for voluntary administration

17 November 2017

The Gold Coast Bulletin reports that “predictive intelligence software producer Veriluma – which has a tech hub at Robina – has been placed into voluntary administration. The company, which listed last year via the reverse takeover of mining junior Parmelia Resources, released a statement to the ASX saying Jamieson Louttit, of Jamieson Louttit, has been appointed administrator.”


GOVERNMENT

Kangaroo Island Council has secured full and final payment of outstanding debts, totalling $39,000, to three island-based businesses.

7 November 2017

The Islander reports that “Kangaroo Island Council has secured full and final payment of outstanding debts, totalling $39,000, to the three island-based businesses which provided materials and services to the airport upgrade project material crushing contractor, NBS (Excavations) Pty Ltd. The company placed themselves into voluntary liquidation on February 13, and the monies had been outstanding since that time.”


HEALTH

Bikram Choudhury, hot yoga guru, seeks US bankruptcy

11 November 2017

The Sydney Morning Herald reports that “Bikram Choudhury Yoga, the studio that popularised hot yoga, has filed for US Chapter 11 bankruptcy after being dogged by $US16.7 million ($23.4 million) in legal judgements and numerous lawsuits and allegations of sexual misconduct.”


INVESTMENT

'Unsustainable debt' forces mortgage broker eChoice sale

29 November 2017

The Australian Financial Review reports that “eChoice, an award-winning mortgage aggregator with more than 400 brokers, could be sold to a 'major financial institution' after being placed into voluntary liquidation because of unsustainable debt.”


Benchmark goes into liquidation

21 November 2017

IFA reports that “ASIC has announced that five companies under the Benchmark Private Wealth banner have entered liquidation. ASIC sought the ex parte orders following an investigation into Benchmark and its director Liam Young, which found concerns over the solvency of relevant companies.”


Don't blame the nags for the financial woes of pharmacy guru Rohan Aujard

20 November 2017

The Sydney Morning Herald reports that “more than five years have passed since the former pharmacy czar and horse racing identity, Rohan Aujard, filed for bankruptcy. But his financial penury is not about to end any time soon.”


LGL Commodities: Emergency cash paid for Christmas bonuses

15 November 2017

The Weekly Times reports that “three directors of a failed grain company gave themselves Christmas bonuses about five days after receiving $1.5 million in emergency funding from a major shareholder. According to a statement of claim lodged in the Supreme Court of Victoria, LGL Commodities executive directors Michael John Long and Timothy Griffiths received bonuses of $30,389 each and fellow director Mark Anthony Long $16,600 on or about December 24, 2013, after receiving the $1.5 million from Paul Ramsay Holdings Pty Ltd, owned by late health care billionaire Paul Ramsay.”


Bankrupt bitcoin king Mark Karpeles of Mt Gox in line for windfall

10 November 2017

The Australian reports that “creditors of the collapsed Japanese bitcoin exchange Mt Gox are on course to miss out on the recent surge in bitcoin prices. Instead, it is the exchange’s former chief executive, now on trial for embezzlement, who could turn a handsome profit. That is because the claims by people who deposited bitcoin at Mt Gox are calculated based on the yen value of the cryptocurrency at the beginning of Mt Gox ­liquidation proceedings in April 2014.”


SMALL BUSINESS

Arc Attack returns with new company

4 November 2017

The Coffs Harbour Advocate reports that “after allegedly being deceived out of more than $500,000 by a Coffs Harbour accountant, the owners of Arc Attack Engineering are back on track with a new company.”


LEGAL

My Family Doctors liquidated after lawsuit from ex-cleaner

29 November 2017

The Townsville Bulletin reports that “a Townsville medical centre closed its doors yesterday after a court found it owed more than $92,000 to a local cleaner. Kirwan clinic My Family Doctors, whose director Dr. Praveen Kumar is currently suspended from medical practice and on bail for unrelated criminal charges, was ordered by a court into liquidation.”


Fraud police investigating visa scam

18 November 2017

The Illawarra Mercury reports that “fraud detectives are investigating the visa-for-jobs scheme run by Sydney businessman Lubo Jack Raskovic, who is accused of leaving dozens of migrants tens of thousands of dollars out of pocket. The scheme, first revealed in a joint SBS-Fairfax investigation, offered hopeful migrants a regional job, as a pathway to a permanent-residency visa, in return for fees of up to $70,000.”


Bankruptcy hits hard

14 November 2017

Star Weekly reports that “Wyndham has recorded the largest number of people declaring bankruptcy in Victoria. Between July and September this year, 105 Wyndham residents lodged personal insolvencies with the Australian Financial Security Authority. In the same period, Wyndham recorded an additional 18 debtors with business-related insolvencies. The area that lodged the second-highest number of bankruptcies in Victoria was Whittlesea-Wallan, with 81 personal cases and 12 business cases.”


Directors & governance in a time of concern

14 November 2017

Bluenotes reports that “there’s the debate on executive remuneration and how directors should think about the quantum of executive pay in an environment where there are concerns about the impact of income inequality.“


McGrathNicol partners sued in Hastie workers claims case

13 November 2017

The Australian reports that “the Employment Department has accused four partners at top-tier insolvency firm McGrath­Nicol, including its executive chairman, of saddling taxpayers with a bill of almost $3 million to pay the entitlements of workers who lost their jobs in the collapse of engineering group Hastie. In a lawsuit filed with the Federal Court, the department seeks compensation and declarations the partners — executive chairman Peter Anderson, Joseph Hayes, Jason Preston and Matthew Caddy — breached their duties as receivers under the Corporations Act.”


Why turnaround ‘safe harbour’ laws for company directors makes sense

9 November 2017

The West Australian reports that “Australia has been criticised for having punitive insolvency laws that snuff-out directors’ enthusiasm to save companies facing financial and operational headwinds for fear of falling on the wrong side of an insolvent trading claim. The Australian Government has addressed the apparent lack of a “turnaround culture” (relative to other comparable jurisdictions) by introducing a “safe harbour” regime.”


Insolvency figures drop a recovery sign

8 November 2017

The West Australian reports that “the number of people entering into personal bankruptcies in the Pilbara has started to stabilise, new data has revealed. The latest regional insolvency statistics released by The Australian Financial Security Authority saw the total number of debtors in the Pilbara reach 25. The statistics revealed a slight decrease on the December 2016 quarter, with the total number of debtors in the Pilbara reaching 29.”


Cairns woman’s bid to retain vintage car has been rejected in court

4 November 2017

The Cairns Post reports that “a Cairns woman’s bid to declare ownership over a vintage car has been labelled inappropriate and dismissed in the Cairns Supreme Court. A court previously ordered that the car in question — a 1966 Ford Mustang convertible — be handed over to Cairns produce business Simon George and Son as part of almost $2.3 million in compensation after its branch manager was found guilty of a $1.6 million fraud.”


Victoria’s bankruptcy hot spots revealed

4 November 2017

The Herald Sun reports that “Melbourne’s southern and western suburbs are bankruptcy hot-spots, Australian Financial Security Authority analysis shows. The Wyndam region in the west tops the list of Victorian areas with the most personal insolvencies for the September quarter, followed by Casey, Dandenong, Cardinia and Frankston in the south east.”


The latest on insolvency safe harbour reforms

2 November 2017

In the Black reports that “insolvent trading safe harbour reforms received royal assent on 19 September 2017. These amendments to the Corporations Act provide protection to company directors from liability for insolvent trading. The amendments apply to courses of action developed or taken before, at or after the commencement date, and to debts incurred on and from that date.”


PRIMARY INDUSTRY

Ab farm washing up

20 November 2017

The Port Lincoln Times reports that “pieces of the tonnes of infrastructure left behind by failed aquaculture venture Ocean Abalone Australia have been washing up on the West Coast. Ocean Abalone Australia held five marine-based aquaculture licences leases in Anxious Bay but when the company was placed into receivership in February this year and the business was not sold, the infrastructure was left abandoned.”


Tamar Valley pulp mill over

1 November 2017

The Advocate reports that “State Growth Minister Peter Gutwein says Gunns’ receiver has surrendered its pulp mill permit, meaning the project now cannot proceed. The news was revealed in Parliament on Wednesday night as the lower house debated a bill brought by the Greens to repeal the Pulp Mill Assessment Act. The bill was moved by Bass Greens MHA Andrea Dawkins to kill off the project for good.”


Tony and Violetta Esposito appear at National Dairy Products hearing

1 November 2017

The Weekly Times reports that “the owner of collapsed milk broking firm National Dairy Products has denied running the company. Tony Esposito, who owned NDP and was its director from its inception in 2015 until April last year, told the Supreme Court the company was run by chief executive officer Darryl Cardona and that he was only an adviser to Mr Cardona. Mr Esposito and his fiancee, Violetta Esposito, were in the court during an examination of the company’s affairs by liquidators Glen Kanevsky and Salvatore Algeri.”


ENTERTAINMENT

Former Titans and Broncos star Chris Walker in financial sin bin

29 November 2017

The Gold Coast Bulletin reports that “former rugby league larrikin Chris Walker is in the financial sin bin and facing the possibility of asset transfers being red-carded. Trustees are investigating whether property interests transferred to wife Courtney by Mr Walker prior to him being declared bankrupt were undervalued.”


The Tangled Maze up for grabs

26 November 2017

The Courier reports that “popular tourist venue the Tangled Maze will go under the hammer on December 15, two months after it went into liquidation. The Creswick venue closed its doors and cancelled pre-booked weddings when it declared bankruptcy in September.”


RugbyWA goes into voluntary administration following Western Force culling from Super Rugby

17 November 2017

Fox News reports that “the bitter fallout from the Western Force’s axing has hit a new low with RugbyWA forced into voluntary administration because it can’t pay Rugby Australia’s legal costs. RugbyWA claims it simply hasn’t the cash to settle the bill. It also owes $1.14 million to the WA government for the 2009 upgrade of nib Stadium as well as an unspecified amount to law firm Lavan.”


Sale gives Highfields Bowls Club new lease of life

13 November 2017

The Chronicle reports that “the former Highfields Bowls Club is set to become a community hub with new owners revealing plans to take over the centre. The Highfields Community Church confirmed to The Chronicle on Monday it had bought the site which once operated as a sporting club in the growing area.”


Final court decision in Ten takeover due

10 November 2017

SBS reports that “a Supreme Court judge is due to hand down his decision on the transfer of Ten Network's shares to US media giant CBS, marking the crucial final stage of the $41 million takeover over the troubled free-to-air broadcaster.”


NOT FOR PROFIT

Glen Ella speaks out after $20 million kid’s charity collapse

11 November 2017

The Sydney Morning Herald reports that “he is a regular at charity functions, an Indigenous mentor who played for his country. But Glen Ella has started avoiding social events because people keep asking him what is going on. "The more that's written, the more they think I'm a crook," says the former Wallaby who played four Tests and continues to coach internationally.”


AUSTRALASIA

LEGAL

You can buy almost anything online in China, even a jumbo jet

22 November 2017

Mirage News reports that ““online auctions are a good way to handle the property of bankrupt firms,” Long Guangwei, the court’s vice president, told Xinhua. “Online auctions save time and service fees for bidders.””


Share bike bubble claims first big casualty as Bluegogo reportedly goes bankrupt

16 November 2017

The Sydney Morning Herald reports that “China's share bike bubble has started to burst. The share bike business, which has pumped millions of bicycles onto city streets worldwide, has seen its first big casualty.

Bluegogo, which ranked in the top three share bike companies at the start of the year, is reported to have gone bankrupt after burning through 600 million yuan ($119 million) in venture capital churning out bikes.”


Takata creditors seek $30 billion, far more than it can pay - court filing

9 November 2017

Yahoo 7 News reports that “creditors of bankrupt Takata Corp say the parts maker owes them more than $30 billion after the automotive industry's biggest recall over its faulty air bags - many times more than the company can repay, a court filing seen by Reuters shows. In the biggest bankruptcy of a Japanese manufacturer, Takata sought court protection from creditors in June as costs and liabilities mounted from almost a decade of recalls and lawsuits.”


Samoan union is 'bankrupt', says prime minister

9 November 2017

SBS reports that “Tuilaepa Sailele Malielegaoi, who is also chairman of the Samoa Rugby Union (SRU), made the comments in an interview with the Samoa Observer ahead of a local telephone fund-raising initiative. “We are bankrupt," he said. "In other words, we are insolvent. It means the Union cannot continue to pay off our debts with the banks. We also need money to pay the players so they can continue to play."


PRIMARY INDUSTRY

China's Huishan Dairy edges toward liquidation

18 November 2017

The Australian Financial Review reports that “China Huishan Dairy Holdings, struggling under billions of dollars’ worth of debt, is preparing for provisional liquidation in a legal escalation of one of the most spectacular collapses of a Hong Kong-listed firm in recent years.”


INVESTMENT

Asia's richest banker spots a once-in-a-lifetime opportunity in bankruptcy laws

22 November 2017

The Australian Financial Review reports that “for India, it's a $US207 billion ($273 billion) mess, a pile-up of bad loans years in the making that's dragging on growth. For the nation's wealthiest banker, it's the kind of opportunity that very rarely presents itself. What has billionaire Uday Kotak salivating is the government's attempt to finally draw a line under delinquent loans, with recent steps to overhaul India's bankruptcy laws and recapitalise state-owned banks.”


First business to use equity crowdfunding in New Zealand enters voluntary administration

23 October 2017

Smart Company reports that “the first company to use New Zealand’s equity crowdfunding framework to raise capital in 2014 is looking for a buyer, with administrators reporting cash flow difficulties led to challenges at Renaissance Brewing. The New Zealand Herald reports the brewery, which appointed administrators Shephard Dunphy on October 9, is looking for new owners for what administrator Iain Shephard said is “a hell of an asset”.”


EUROPE

LEGAL

Founder of Germany's failed Schlecker drugstores convicted, children jailed

28 November 2017

Yahoo 7 News reports that “the founder of Germany's failed Schlecker drugstore chain got a suspended sentence and his two children got jail terms on Monday for taking money from the company before its collapse. Workers who lost their jobs when the firm shut its stores in 2012 cheered in court when the prison sentences were read out.”


NORTH AMERICA

ENTERTAINMENT

Michael Vick makes final payment on debt from bankruptcy deal

18 November 2017

Yahoo 7 News reports that “Michael Vick has made his final payment to creditors stemming from when he filed for bankruptcy in 2008. According to ESPN, with his $1.5 million payment made Thursday to creditors, Vick has now paid back $17.4 million of the $17.6 million he owed.”


RETAIL

Niner Files for Bankruptcy in Lead-up of Planned Sale

30 November 2017


Cycling Tips reports that “as reported by Bicycle Retailer and Industry News’ (BRAIN), Colorado-based Niner Inc has filed for Chapter 11 bankruptcy in lead up of a planned sale to a group of cycling-enthusiast investors.”

Toys 'R' Us asks to pay executives $16 million in bonuses despite bankruptcy

17 November 2017

Nine News reports that “the American arm of Toys "R" Us has asked for permission to pay its top executives $16 million in bonuses despite filing for bankruptcy earlier this year. The multinational business had experienced nearly 60 years of uninterrupted growth as the world's largest toy retailer until 2005, when sales plunged as Walmart and Amazon crash-tackled the market. In September, Toys "R" Us was forced to file for bankruptcy in a US court after amassing nearly $US5 billion ($AUD6.6 billion) in debt in an effort to keep up with online toy sellers.”


Sears Canada tarnishes the gold standard of pensions

8 November 2017

The Conversation reports that “like many department stores, Sears Canada has struggled with competition from specialty stores and online retailers. Its bankruptcy will eliminate some 12,000 jobs and leave 16,000 retirees worried about their pensions. It’s just the latest signal that employees and regulators should rethink their approaches to defined-benefit pensions.”


LEGAL

Weinstein Co debt tops $US500 Million

10 November 2017

SkyNews reports that “the Weinstein Co is trying to secure a financial lifeline that will allow the indie film and television studio to avert bankruptcy as insiders put the company's debts at around $US520 million ($A728 million). The company still believes it can find a buyer for its library of award-winning movies and programming without having to file for Chapter 11, but even with a cash infusion, its financial picture is bleak.”


INVESTMENT

SandRidge investor Fir Tree opposes $746 million bid for Bonanza Creek

21 November 2017

Yahoo 7 News reports that “activist investor Fir Tree Partners on Monday opposed SandRidge Energy Inc's $746-million deal to buy rival Bonanza Creek Energy Inc, saying an acquisition would drain all of the oil and gas producer's cash.”


SOUTH AMERICA

INVESTMENT

Puerto Rico's PREPA utility creditors say power grid damage is overblown

7 November 2017

Yahoo 7 News reports that “bondholders of Puerto Rico's bankrupt power utility, PREPA, said on Friday that the damage to the local electric grid by Hurricane Maria is not as bad as the island's government says, and could be fixed quickly with an outside energy expert in charge.”


Shareholder in Brazil's Oi leans on distressed debt funds for support

2 November 2017

Yahoo 7 News reports that “an influential shareholder in Brazil's Oi SA is working with U.S. and UK distressed debt hedge funds to maintain his central role at the telecoms provider as it struggles to emerge from bankruptcy protection, four sources said. The funds, the smallest group of Oi bondholders known as the G6, could help Nelson Tanure, who has a 6.5 percent stake in Oi and significant board clout, fend off rival restructuring plans by the company's two largest bondholder groups.”

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