October News Digest

01 November 2017

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

AUSTRALIA

PROPERTY AND CONSTRUCTION

Building firm Coombs Barei enters voluntary administration with the loss of nine jobs and leaving tradies in limbo

30 October 2017

The Advertiser reports that “an experienced Adelaide building company facing mounting pressure over unpaid debts has closed its doors with the loss of nine jobs. Embattled Hindmarsh firm Coombs Barei Constructions, which is part-owned by Adelaide United shareholder Bruno Marveggio, was this afternoon placed in voluntary administration. The company, founded in 1969, has been under sustained criticism over its failure to pay tradies and suppliers.”


From down and out to better than ever… Riverside’s revitalization

20 October 2017

Murray Pioneer reports that “in late 2013 Riverside Estate’s future appeared bleak, but fast forward four years and the Renmark-based lifestyle village is bursting at the seams with positivity and excitement.

The Estate was thrust into uncertainty when the business could no longer operate and was forced into receivership. Although its residents were protected under the Retirement Villages Act, Riverside entered a difficult period as Adelaide-based receivers Ferrier Hodgson stepped in to operate the facility.”


Lord Mayor Lisa Scaffidi’s husband’s business Premier Building Solutions folds with tax debt

19 October 2017

The West Australian reports that “the Australian Tax Office is $535,000 out of pocket after the building company of Joe Scaffidi, the husband of Perth’s embattled Lord Mayor Lisa Scaffidi, folded in August. The company, Premier Building Solutions, is one of the entities caught up in the long-running legal brawl between Mr Scaffidi and his estranged brother, Gino. In 2014 it was the target of a lawsuit from Gino Scaffidi’s Montevento Holdings, according to Supreme Court records. That lawsuit is ongoing.”


Hundreds may lose as Illawarra builder collapses

13 October 2017

The Illawarra Mercury reports that “more than 200 creditors could be out of pocket by up to $6 million due to a prominent local building company’s financial woes. Edwards Constructions (NSW) Pty Ltd - which was building the new Bellambi Bunnings - went into administration earlier this month. An administrator estimated that the company owed “between $4 million and $6 million of creditors”.”


Despair as yet another Ballarat company goes bankrupt

11 October 2017

The Courier reports that “the bad run for Ballarat industry has continued this week with the demise of another group of companies connected with manufacturing and construction. Documents presented to the Australian Securities and Investment Commission revealed Lontana Pty Ltd, which traded as Ballarat Windows, Altitude Architectural Windows and Ballarat Architectural Windows went into liquidation on Monday.”


Ballarat builder goes bust, leaves dozens in the lurch

8 October 2017

The Courier reports that “a prominent Ballarat builder has gone into liquidation, leaving dozens of homes incomplete while still owing multiple tradespeople. Severino Homes went into liquidation last week, months after reports of unfinished homes first surfaced. Liquidator Claudio Trimboli confirmed details about the amount the business owes and the number of creditors would be presented to the Australian Securities and Investments Commission on Monday.”


Taylor Dow Property Group liquidation: Creditors owed more than $280K

4 October 2017

The Geelong Advertiser reports that “the failed real estate venture of Ocean Grove entrepreneur Taylor Dow owes more than $280,000 to creditors, according to ASIC documents. Documents lodged with the corporate watchdog reveal the Taylor Dow Property Group owes $29,000 to Melbourne-based developer SMA Projects and $27,500 to Queensland-based Property Solutions. Taylor Dow’s company has gone into liquidation. More than $66,600 is owed to the Australian Taxation Office and $20,500 to two employees, according to a creditors list seen by the Geelong Advertiser.”


Matisse Beach Club to be reborn with promise of return to Scarborough ‘feel and vibe’ ... but no wading pool

3 October 2017

The West Australian reports that “Scarborough’s failed Matisse Beach Club will be reopened under a new name in as early as two weeks after being bought from administrators by Perth nightclub owner David Heaton. The prominent beachfront site will resume trading as the Lookout Pop-up Bar before closing again in January for a major refit Mr Heaton promises “will blow people’s minds”.


MINING

New Aussie mine to yield fancy yellow diamonds

31 October 2017

Jeweller Magazine reports that “an Australian mining company has secured an agreement to commence operations at its diamond mine located near a site that once produced approximately half of the world’s supply of fancy yellow stones. Mining leases have been granted for POZ Minerals’ Blina Diamond Project, situated in the West Kimberley region of Western Australia, after an agreement was finalised with the traditional owners of the area.”


Administrators take charge of indigenous contractor Eastern Guruma

31 October 2017

The West Australian reports that “indigenous contracting company Eastern Guruma has been put in the hands of administrators after suffering big losses on a couple of resources projects. Eastern Guruma was also caught up in the collapse of joint venture partner Brierty, leaving it with a claim of about $350,000. Administrators were appointed late last week to the civil and mining contractor, which has three pastoral management subsidiaries not subject to insolvency measures.”


Residents still paying Pasminco cleanup costs

24 October 2017

The Newcastle Herald reports that “there’s been a bit of good news around Boolaroo lately. In August, $2.2 million in federal funding was announced for a 700-metre extension of Munibung Road to link the suburb with Cardiff. Just a few days ago, the NSW Court of Appeal found in favour of Bunderra Holdings, the developer of a residential estate on part of the former Pasminco smelter site, hopefully ending a long-running drainage dispute that has stopped property owners in the estate from building their homes.”


Titan Minerals retracts prospectus exploration results ahead of listing

16 October 2017

Stockhead reports that “soon-to-be listed Titan Minerals has been forced to retract exploration results outlined in its prospectus while easing any concerns over potential legal action after raising $6 million. Peru-focused Titan (ASX:TTM), formerly the collapsed Minera Gold, will be reinstated to the ASX tomorrow after completing a recapitalisation in an oversubscribed placement. However, ahead of its relisting Titan has been forced to retract a statement in the independent technical report of its prospectus because it was in breach of JORC Code and ASX Listing Rules.”


"Daigou" retailer lists on ASX

5 October 2017

SBS reports that “a former oil and gas drilling company has resumed trading on the Australian share market under a new name and purpose: selling Australian products to Chinese tourists and "daigou". AuMake International sells Australian cosmetics, vitamins, long-life milk, baby products, and wool and leather products through its wholesale warehouses and retail stores. The company wants to become the leading retail brand for "daigou" and Chinese tourists buying "clean and green" Australian products, and consolidate the highly fragmented number of daigou stores through acquisition.”


RETAIL

Indian company to acquire stake in Bevilles Jewellers

31 October 2017

Jeweller Magazine reports that “Indian jewellery company Tara Jewels will acquire a 49 per cent stake in Bevilles, four years after forming a “strategic alliance” with the Australian jewellery retailer. Bevilles CEO Michelle Stanton told Jeweller the Bevilles family would retain a 51 per cent stake and that the deal was expected to be finalised in the next 12 months.”


Sumo unveils restructure and growth plans

31 October 2017

Business Franchise Australia & New Zealand reports that “Australia’s largest and most trusted healthy food group, SumoSalad, today unveiled a strategic restructure of the business designed to grow the number of stores nationally and significantly increase revenue and earnings over the next three years by implementing an omni-channel focused business model. The restructure involves the liquidation of two leasing entities that were previously under voluntary administration, with the leases folded into a new legal entity that will hold the leases for existing and planned stores.”


Class action alleges Dick Smith inflated value by $150M

26 October 2017

ARN reports that “one of two class actions being launched against Dick Smith Holdings is set to allege that the failed electronics and IT retailer inflated the combined value of its assets and equity by about $150 million, after tax. The class action is set to be brought against the entity remaining following the retailer’s collapse early last year -- now under the control of receivers, Ferrier Hodgson -- by Johnson Winter & Slattery in partnership with Investor Claim Partner (ICP).”


The retail squeeze has halved revenue at this Australian chain and its shares are tanking

18 October 2017

Business Insider reports that “shares in Specialty Fashion Group fell hard after the Australian clothing retailer downgraded its profit guidance. A short time ago, the shares were down 14% to $0.215. Clothing retailers in Australia have been hit hard by pressure from emerging digital competitors and weak market conditions. Earlier this year Topshop, Topman, Marcs and David Lawrence all went into voluntary administration.”


Retail Communications under liquidation

12 October 2017

ProPrint reports that “Melbourne based printer Retail Communications has gone into liquidation, with its cash flow unable to service its growing debt, thought to be in excess of $1.5m. The company is owned by Mark Archibald, who has had the company - which has between 15 and 20 staff - for almost 11 years.”


SurfStitch offloads UK retailer Surfdome

12 October 2017

The Australian reports that “the administrators of collapsed online retailer SurfStitch have sold off its UK subsidiary Surfdome Shop, a board sports online retailer. In the latest move to try to save the retailer by offloading assets, Surfdome was sold to UK sports and adventure retailer internet Fusion, which paid close to £7 million ($A11.9m) for the business. It comes as administrators try to restructure the company, which entered voluntary administration in August.”


Bakery family Mias in last-ditch bid to save 100 jobs

10 October 2017

The West Australian reports that “about 150 jobs are under a cloud as third-generation family business calls in administrators. The family behind failed Canning Vale baker Mias is working on a last-ditch proposal to thwart the recommended sale of the business to an unknown buyer at the cost of up to 100 jobs.”


Amazon is set to arrive at the best worst time possible

9 October 2017

Finder.com.au reports that “Amazon is coming to Australia in a tumultuous time. The online retail giant is expected to open its digital doors this month or the next, which means it's going to be coming at either the best or the worst possible time, depending on which side of the fence you're on. Right now, Australia's retail scene is stuck in a rut. Three interconnected issues have it bogged down, which are in turn driving rapid change. "I would describe [it] as a leaky bucket situation." said a retail leader. "They don't have one clear thing to fix."”


Breakthrough in Melbourne Jewellery Robberies

6 October 2017

Jeweller Magazine reports that “the Melbourne jewellery industry has again been thrust into the spotlight with news that three men have been arrested in relation to the receiving and selling of stolen jewellery believed to be linked to a string of armed robberies in the past year. On the day that the charges were made, Mendieta Blanco's Sell Your Gold website stated that the office was closed due to “unforeseen family circumstances”. Ben-Simon placed his companies in voluntary administration in May 2016 after racking up debts of nearly $7 million.”


SurfStitch's would-be saviour Abigail Cheadle

5 October 2017

The Australian Financial Review reports that “forensic accountant Abigail Cheadle restructured foreign debt for the Soviet Union and Iraq and helped save Indonesian banks and Thai finance companies during the Asia economic crisis. Now the 45-year-old chartered accountant wants to turn around ailing online surf and skate wear retailer SurfStitch. Ms Cheadle has outed herself as the SurfStitch non-executive director who submitted a confidential restructuring proposal last month to SurfStitch's administrators after the former market darling went into voluntary administration in August.”


LOGISTICS

Vessel operator falls into administration

25 October 2017

Business News WA reports that “the administrators of troubled oil and gas services provider Go Marine Group say they are confident they can recapitalise the business.”


Future-Proofing Trucking

12 October 2017

Diesel News reports that “change is the new constant is the message,” said Ben Maguire, Australian Trucking Association (ATA) CEO, speaking at the opening of the annual Trucking Australia conference in Darwin, recently. “For generations, in the industry we have managed and embraced change, but what is catching us all by surprise is the pace increasing in that change. “One of the speakers at the event, Brendan Richards – a partner at Ferrier Hodgson and Azurium – is no stranger to change, or the management of change.”


TOURISM and HOSPITALITY

Catering for elite, leaving staff with bitter taste

31 October 2017

The Australian reports that “it was an exquisitely Melbourne affair. A who’s who of business and the arts admiring Dior fashion, sipping Moet from golden goblets and nibbling canapes by Peter Rowland, the king of high tea. Behind these glittering scenes, staff who used to work for Rowland and Australian taxpayers were being served a sandwich of a very different kind. About 16 former staff are owed $364,000 in unpaid entitlements and the tax office $1.25 million in unpaid taxes from the past two financial years.”


Lithgow pub hot property at auction

30 October 2017

The Shout reports that “Tattersalls Hotel in Lithgow, New South Wales, was sold at auction on Friday 27 October, after being placed in receivership. There were many interested parties in the auction, with four active bidders taking part. With an opening bid of $800,000, the auction quickly became a back-and-forth contest between two parties. It sold for $1.7 million to Mike Schmidt, who previously owned the pub in the Central Tablelands region until 2010.”


Cassowary Coast Council: Hinchinbrook work over due

21 October 2017

The Cairns Post reports that “the Cassowary Coast Regional Council has come out swinging, saying a meeting with the State Government to get the ball rolling on Hinchinbrook Harbour upgrades is “well overdue”. Councillors agreed in a meeting on October 12 to send a letter to State Development Minister Dr Anthony Lynham asking to “have the Hinchinbrook Harbour public marine facilities recognised as important regional economic and public infrastructure”. Cr Glenn Raleigh said the council also sought to bring dredging plans forward and reinstate other facilities.”


Jobs for students at Adl Uni cafes

17 October 2017

The Advertiser reports that “South Australian-owned coffee chain Bean Bar secured a coveted two-outlet lease at the new Adelaide Health & Medical Sciences building by creating jobs as a way of “giving back” to its customers. The Bean Bar chain was established in 2001, and was bought by Mr Jakhwal and his wife Krista in 2014 from BRI Ferrier when former franchisor Basset Holdings was liquidated to recover a tax debt.”


COMMUNICATIONS

End of the road for Lif3, the supplier of a mobile phone anti-radiation 'smart chip'

5 October 2017

CRN reports that “Lif3 Global, a Queensland-based distributor of radiation-blocking smart chips for mobile phones that were sold in Harvey Norman, has hit the wall amid a lack of demand for the product and after the supplier pulled the pin on their partnership. The administrator’s scathing report blamed poor revenue, expensive advertising campaigns and a lack of business acumen for Lif3 Global’s collapse.”


TECHNOLOGY

BMS Technology reveals almost $1M of debt after administration

27 October 2017

CRN reports that “approximately $995,000 worth of debts was uncovered after the first creditors meeting of Adelaide-based distributor, BMS Technology. BMS Technology entered into voluntary administration on 10 October. The first meeting of creditors, which was held on 19 October, revealed that BMS entered administration owing $272,265 to Netgear, $229,188 to Kyocera Document Solutions Australia, $184,850 to Toshiba Client Solutions and $161,513 to Eaton Industries.”


Margin pinch sees Data Centre Technologies enter liquidation

19 October 2017

CRN reports that “the uptake of cloud-based solutions among local businesses and increased market competition are two factors that have played a part in seeing Queensland’s Data Centre Technologies enter voluntary liquidation. Joint liquidators were appointed on 14 October; more than two decades after the Data Centre Technologies began operating, albeit under a number of trading names. Based in Brisbane, Data Centre Technologies had made a name for itself thanks to its data centre consulting work designing, building, maintaining and improving mission critical data centre facilities for enterprises of all sizes.”


GOVERNMENT

Greens Northcote candidate reveals abusive relationship led to her bankruptcy

26 October 2017

The Herald Sun reports that “Greens candidate for the Northcote by-election Lidia Thorpe has revealed an abusive relationship and failed business led to her being declared bankrupt in 2013. The Herald Sun uncovered documents this week that showed Ms Thorpe was discharged from bankruptcy late last year, about eight months before running for State Parliament.”


Caboolture’s first child care centre gets second chance to serve community

26 October 2017

The Courier Mail reports that “Caboolture’s first childcare centre has been bought by Moreton Bay Regional Council to preserve it for community use. The Hayes Street Community Child Care building was bought by the council for a fraction of its value after the centre was declared bankrupt. Its future has yet to be decided, but it is believed it will remain a community facility.”


Parliament told how Gold Coast LNP star David Crisafulli bailed from a financial troubled company

25 October 2017

The Gold Coast Bulletin reports that “LNP star Gold Coast candidate David Crisafulli had been a director of a financially troubled training company and bailed out before it went into voluntary liquidation, State Parliament has been told. Commonwealth Games Minister Kate Jones, in a fiery address when Parliament began sitting from 2pm today, revealed the LNP’s Broadwater candidate was linked to Southern Edge Training when he was based in Townsville.”


HEALTH

Administrators explain $77 fee for medical records

5 October 2017

The Gladstone Observer reports that “Gladstone Valley and Calliope Medical Centre patients are coughing up cash for the administration of two recently closed general practice services. A statement provided by the administrators explained why it is charging patients $77 to have their medical records transferred to new healthcare providers following the closures of the two long-term centres.”


Company that offered testosterone 'restoration' treatments to increase libido fined for unlawful advertising

4 October 2017

ABC News reports that “an Australian male health company which promised to help men lose weight and increase their libido through testosterone "restoration" treatments has been fined $127,500 for unlawful advertising. The charges were brought by the Australian Health Practitioner Regulation Agency (AHPRA) after the clinic published newspaper advertisements which claimed they could treat testosterone deficiency.”


INVESTMENT

Stream Group directors pinged for helping themselves without shareholder approval

26 October 2017

Stockhead reports that “insurance claims manager Stream Group has been rapped over the knuckles by the ASX for selling shares to parties related to its directors. Earlier this year the company (ASX:SGO) issued 2.2 million shares at 4c to Notron, the family superannuation fund of director Lawrence Case. Another director Christian Bernecker was issued 550,000 options via his entity Longreach Group — through they were not exercised. Under ASX rules, a company must not issue equity to a related party without shareholder approval.”


Hasbro sales outlook dented by Toys ‘r’ Us bankruptcy

24 October 2017

Bull.com.au reports that “shares of Hasbro tumbled Monday after the toymaker projected lower sales growth than expected in the crucial holiday shopping quarter due to the Toys "R" Us bankruptcy. Hasbro executives projected fourth-quarter sales growth of between four and seven percent because of the uncertainty surrounding the shopping chain. That was below the 11.5 percent growth that had been expected by analysts.”


Ghost of HydroWorks lingers as Powerhouse looks for new investments

20 October 2017

Stockhead reports that “Powerhouse Ventures is pitching itself as a turn-around story following a disastrous year. Chief executive Paul Viney says the Kiwi venture capital firm is tightening up its business model and looking to expand its investments into Australia. Powerhouse will start putting pressure on its investments to turn exciting intellectual property into products, says Chairman Russell Yardley. This year, several crises have put pressure on Powerhouse (ASX:PVL) — arguably none more so than the $7 million liquidation of key investment turbine maker HydroWorks.”


Phil Sullivan hopes High Court will throw out orders that he and three ex-colleagues must repay more than $70 million to 11,000 investors

5 October 2017

The Courier Mail reports that “Phil Sullivan just won’t give up. The failed Gold Coast bizoid hopes to go all the way to the High Court to fight orders that he and three former colleagues must repay more than $70 million to about 11,000 dudded investors in now-defunct funds manager City Pacific. The former bankrupt, who founded City Pacific and still resides in a waterfront mansion at Broadbeach, lost his appeal last month in a unanimous decision handed down by the full bench of the Federal Court.”


SMALL BUSINESS

Cleaning outfit part-owned by Bendigo mayor Margaret O'Rourke has gone into liquidation

31 October 2017

The Bendigo Advertiser reports that “a cleaning company part-owned by Bendigo mayor Margaret O’Rourke has gone into voluntary liquidation. Cr O’Rourke is a 50 per cent shareholder in the company, which has outstanding debts of $378,000 across 36 creditors.”


Small Business Commissioner Kate Carnell targets government for faster payments

17 October 2017

The Sydney Morning Herald reports that “some of the federal government's biggest spending departments could require contractors to pay their supply chain businesses within 30 days, as part of a campaign by Small Business Ombudsman Kate Carnell. As the government considers the former ACT Liberal leader's inquiry into payment times and contract practices in the Australian economy, Ms Carnell has written to seven public service departments and agencies including Defence, the tax office and Human Services seeking their views on contract terms and conditions, project bank accounts and 30-day payments.”


LEGAL

Slater & Gordon moves on massive debt to prevent insolvency

30 October 2017

Business News Australia reports that “embattled law firm Slater & Gordon (ASX: SGH) has called on its shareholders to vote in favour of a recapitalisation of its "unsustainable debt levels" otherwise it will become insolvent. Slater & Gordon says it owes a total of $761 million, as of 30 June 2017, which it cannot pay down and the debt level is greater than the value of the company which means shareholders will get nothing if it moves to insolvency.”


Government wants to reduce bankruptcy period by two years

25 October 2017

CRN reports that “the federal government has tabled a bill to amend Australia's bankruptcy laws that could see the mandated bankruptcy period cut by two years. The bill, which was tabled for hearing in the senate last week, would see bankrupt individuals discharged from bankruptcy after a one-year period, rather than three years.”


Former bikini model widow of bikie tells Supreme Court relationship with father-in-law has broken down

23 October 2017

The Courier Mail reports that “the former bikini model widow of an infamous bikie who died in suspicious circumstances has told a Brisbane court she has fallen out with her father-in-law and the relationship is unsalvageable. Rachel Ciano, a stay-at-home mum from Surfers Paradise, has told the Supreme Court that since her husband Ricky Ciano died from a hot-shot of drugs her father-in-law Tony Ciano behaviour “has put an end to our relationship” and she can’t bear to run her late husband’s business with him.”


Debt agreements and how to avoid unnecessary debt traps

20 October 2017

Smart Company reports that “debt agreements are the fastest growing form of personal insolvency in Australia. They were designed to offer debtors a low-cost way to make arrangements with their creditors, while avoiding bankruptcy and some of its more serious consequences. When introduced, law reformers intended that debt agreements should be administered by volunteers rather than by commercial administrators who charge fees. However, in practice, debtors often pay substantial fees to debt agreement administrators.”


Family home of ex-wine boss David James halves in price as he faces criminal charges

19 October 2017

Brisbane Times reports that “it's a bitter private split that is playing out in a very public way. Failed Newcastle wine entrepreneur David James will face the Downing Centre Local Court on Thursday after being arrested earlier this month and charged with stalking and intimidation and two counts of attempting to pervert the course of justice.”


What happens if you don’t notify a health and safety regulator of a serious incident?

18 October 2017

HRD Australia reports that “in Australia, there have been more than 10 prosecutions for failure to notify a health and safety regulator of a notifiable incident over the past 12 months. Moreover, since April 2015, there have been at least 33 such prosecutions - 16 of which occurred in Victoria. And in the most recent incident notification prosecution in Queensland, the Toowoomba Magistrates Court imposed a significant penalty of $25,000.”


NSW accountant Stephen Douglass charged with fraud

20 October 2017

The Daily Telegraph reports that “police have laid a fraud charge against an accountant who allegedly took more than $500,000 from a client. The accountant, Stephen Raymond Douglass, was arrested on Thursday at his Coffs Harbour home. Police seized electronic equipment including computers for forensic examination.”


Plutus Payroll liquidated after $165M tax fraud investigation

10 October 2017

ARN reports that “the Supreme Court of NSW has ordered that the heavily IT industry-focused payroll outsourcing firm that was at the centre of a $165 million tax fraud investigation by the Australian Federal Police (AFP) be wound up and liquidated. The decision comes roughly five months after it was revealed that the payroll firm, Plutus Payroll, allegedly being run by several members of a syndicate alleged to be responsible for the $165 million tax fraud against the Federal Government.”


One Nation's Fraser Anning avoids bankruptcy, cleared to replace Malcolm Roberts

3 October 2017

The Sydney Morning Herald reports that “Malcolm Roberts' hopes of replacing himself in the Senate appear doomed after Queensland publican Fraser Anning – the next candidate on One Nation's ticket – successfully avoided bankruptcy. Creditors have officially withdrawn their bankruptcy petition against Mr Anning and his wife Fiona, Fairfax Media can reveal.”


PRIMARY INDUSTRY

Canada's Saputo has made a $1.3 billion bid for Murray Goulburn

27 October 2017

Business Insider Australia reports that “Canada’s Saputo Dairy launched a $1.31 billion offer for Murray Goulburn, Australia’s largest milk processor which has been hit by a global downturn in the dairy industry.

The deal values the Australian dairy trust’s units at between $1.10 and $1.15, a premium to the last traded price of $0.83. Murray Goulburn chairman John Spark says the bid represents the best available outcome for milk suppliers and investors.”


National Dairy Products: Director Violetta Esposito says she had no industry experience

25 October 2017

ABC News reports “a former director of a failed Victorian dairy business has told a court hearing into the company's collapse that she had no experience in the dairy industry and did not understand her obligations as a company director. Violetta Esposito, fiancée of National Dairy Products co-founder Antonio "Tony" Esposito, also admitted under questioning that money transferred out of the firm's accounts to repay a loan had been used to pay $25,000 to a Melbourne cosmetic surgeon and fund a $50,000 holiday at Crown Towers.”


Quintis controls more Top End groundwater than government-owned water and electricity provider

16 October 2017

ABC News reports that “embattled Indian sandalwood producer Quintis controls at least 51,277 megalitres of water — the largest volume of licenced water in the Northern Territory — significantly more than any other agricultural, industrial or government entity. The company lost its founder and managing director Frank Wilson in March and has been in a trading halt since May.”


ENTERTAINMENT

Potential Gold Coast Titans owners to submit bids for club to NRL by Tuesday

30 October 2017

The Gold Coast Bulletin reports that “the NRL will not be able to draw a line under the sale of the Titans by the end of their financial year but are confident they will settle on new owners within weeks after interested parties submit final bids for the Gold Coast by Tuesday. The NRL took over ownership of the Titans in early 2015 after the club was placed in voluntary administration by directors.”


Channel Ten’s apparent revival is good news for Cricket Australia, writes Robert Craddock

17 October 2017

News.com.au reports that “the shockwaves of Lisa Wilkinson’s switch to Channel 10 have rolled all the way to the sporting world to redefine the battle zone for cricket’s new broadcast deal. Only four months after it was feared Channel 10 may be on the verge of drawing its last breath, the station is now precisely where Cricket Australia wants it … on its feet throwing punches.”


ARU pursues RugbyWA for legal costs

19 October 2017

The Australian reports that “RugbyWA may be forced into voluntary administration as the Australian Rugby Union pursues it for costs over the two failed legal attempts to save the Western Force. It is understood the ARU’s legal bill exceeds $1 million, as does the bill confronting RugbyWA after it went first to arbitration and then, on appeal, to the NSW Supreme Court to head off moves by the national body to shut them down.”


Disgraced sports scientist Stephen Dank declared bankrupt

10 October 2017

The Australian reports that “Stephen Dank, the sports scientist at the centre of the Essendon and Cronulla doping scandals, is bankrupt. A bankruptcy order against Mr Dank, sought by Adelaide Bank subsidiary ABL Custodian Services, was today issued by the Federal Court after the disgraced biochemist failed to turn up to a hearing. Bankruptcy proceedings against Mr Dank, who is serving a life ban from sport for his involvement Australia’s most damaging drugs scandal, were initiated earlier this year by the Bendigo Bank to recover nearly $100,000 borrowed and invested by Mr Dank in a failed forestry scheme.”


Returning VFL club Frankston Dolphins appoint coach for 2018 season

9 October 2017

Fox News reports that “Frankston’s return to the VFL competition has gathered steam with the club appointing Adam Skrobalak as its senior coach for 2018. Foxfooty.com.au understands the Dolphins will officially unveil Skrobalak as early as Monday afternoon. Skrobalak will combine his full-time role as St Kilda Football Club’s ruck coach with his Frankston responsibilities. Frankston fell into voluntary administration with reports the fledgling club was $1 million in the red.”


Hawks big-man's message for knockers ahead of new NBL season

4 October 2017

The Illawarra Mercury reports that “there are few certainties in life apart from death, taxes and the Illawarra Hawks being written off ahead of another NBL campaign. The latter occurred in coach Rob Beveridge’s first season in Wollongong as the club came out of voluntary administration. That hastily assembled roster reached the semi-finals with Kevin Lisch crowned league MVP.”


NOT FOR PROFIT

RSL, Tunarama among 137 South Australian charities that failed to lodge financial information

19 October 2017

The Advertiser reports that “the long list of charities — including high-profile organisations such as Tunarama and the Returned & Services League (SA) — was published on Thursday by the Australian Charities and Not-for-profit Commission. Others on the list are the State Library of SA Foundation, the St Ignatius College Foundation, and a wide range of churches and activist groups. Tunarama and the RSL insisted they had up-to-date files, and the ACNC could not clarify the situation.”


Leeton Soldiers Club releases its annual report for the 2016-17 financial year

14 October 2017

The Irrigator reports that “after many dark days, the Leeton Soldiers Club has continued to turn over a new leaf. The club recently announced in its 2017-17 annual report it had returned a trading profit of $159,944. Club secretary-manager Adam McIntyre was happy with the result. The club, through the board, management and staff put in a lot of effort throughout the year and, to see a profit, is reward for those efforts,” he said.”


War veterans’ home in Linden Park saved by white knight

3 October 2017

The Adelaide Messenger reports that “the Royal Australian Regiment Association has officially taken control of its Linden Park headquarters, ending months of uncertainty about its long-term future. The RAR last week finalised a deal with the insolvency firm in control of the RSL SA to buy the Beatty St property for about $900,000. The RSL was planning to sell the land to private developers – and relocate the RAR Association – as it battled financial problems.”


AUSTRALASIA

INVESTING

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

TRANSPORT

Alitalia's finances have 'improved after bankruptcy'

24 October 2017

BTN News reports that “Alitalia's chief commercial officer Fabio Maria Lazzerini has claimed Alitalia's financial situation has improved since it began bankruptcy proceedings this year - to the extent that it has not needed to use the EUR600 million bridging loan provided by the Italian government.”


German pilot's final gesture could land airline in trouble

18 October 2017

Yahoo 7 News reports that “a grand farewell gesture by an Air Berlin pilot during the bankrupt airline’s final flight could land the carrier in hot water with German safety officials. An Air Berlin flight was returning to Germany from Miami early Monday when one of its pilots aborted the landing at Duesseldorf Airport at the last moment to make a low pass around the control tower.”


Lufthansa spreads wings by snapping up parts of failed Air Berlin

13 October 2017

Yahoo 7 News reports that “Lufthansa reinforced its position as Germany's largest airline on Thursday by signing a 210 million euro ($249 million) deal to buy large parts of insolvent Air Berlin. Lufthansa plans to use the Air Berlin assets to quickly expand its Eurowings budget business. News of the deal pushed Lufthansa shares up more than 3 percent to their highest level in nearly 17 years.”


Monarch Airlines enters administration, cancels flights

3 October 2017

International Business Times reports that “Monarch Airlines has entered administration and appointed three partners from KPMG to be administrators. Ten units were reportedly placed under administration, which include most of the Monarch Group's aviation and travel assets. The British budget airline Monarch went administration Monday, immediately grounding all its aircraft and cancelling 300,000 bookings that involved 750,000 people. The government said the Civil Aviation Authority has launched the biggest peacetime repatriation operation in history. The airline had been struggling following terror attacks in some North African destinations.”


ENTERTAINMENT

AIBA boss Wu suspended as bankruptcy fears grow

11 October 2017

Eurosport reports that “International Boxing Association (AIBA) president Wu Ching-kuo has been suspended over allegations of financial mismanagement. Wu has controlled Olympic boxing's governing body since 2006 and even ran for the International Olympic Committee's (IOC) presidency in 2013 when he lost to Thomas Bach.”


UNITED STATES

LEGAL

Creditors win closely watched appeal in Momentive bankruptcy

21 October 2017

Yahoo 7 News reports that “a U.S. appeals court in New York on Friday ruled in favor of senior creditors who had contested interest rates imposed on them during the bankruptcy of silicone maker Momentive Performance Materials, reversing a decision that had sparked alarm among lenders. The ruling by the 2nd U.S. Circuit Court of Appeals found the U.S. Bankruptcy Court in White Plains, New York, erred by not using market rates to determine the interest paid on new notes Momentive forced on holders of about $1.25 billion of secured notes.”


Union presses post-bankruptcy Caesars on benefits, worker protections

12 October 2017

Yahoo 7 News reports that “a union representing casino workers on Wednesday asked Caesars Entertainment Corp's new board of directors to consider safety, protections against discrimination and other concerns during contract negotiations set to kick off next year. Caesars' main operating unit last week exited a three-year, $18 billion bankruptcy. The company owns the Caesars Palace, Harrah's and Horseshoe brands with locations across the country but earns the majority of its operating profit in Las Vegas, where contracts expire on May 31, Unite Here said in a letter to the board seen by Reuters on Wednesday.”


RETAIL

Toymaker Mattel to miss FY revenue forecast, halts dividend

27 October 2017

Yahoo 7 News reports that “toymaker Mattel Inc said on Thursday it would miss its full-year revenue forecast and decided to stop dividend from the fourth quarter to beef up its faltering business that has been hurt by the bankruptcy of its largest customer Toys'R'Us. Shares of the company, which reported weaker-than-expected quarterly results, fell as much as 25 percent in after-market trading.”


Toys 'R' Us says most top vendors have resumed shipments

25 October 2017

Yahoo 7 News reports that “vendors to Toys 'R' Us have resumed shipping top products, a bankruptcy lawyer said on Tuesday, allowing the retailer to stock its shelves ahead of the all-important holiday season. "Inventory is on the shelves," Joshua Sussberg, an attorney with the company's law firm, Kirkland & Ellis, said at a U.S. Bankruptcy Court hearing in Richmond, Virginia, adding that the company was well-stocked with the "latest and greatest" in toys.”


Major Sears investor Berkowitz departs board; stock plunges

17 October 2017

Yahoo 7 News reports that “Sears Holdings Corp on Monday said that Bruce Berkowitz, head of the company's second-biggest investor, resigned from the board of directors less than two years after he sought a seat to help turn the struggling department store chain around, sending Sears stock down as much as 15 percent. The decision by Berkowitz, the head of investor fund Fairholme Capital Management, was not the result of a disagreement over operations, policy or practices, Sears said in a statement.”


Bankrupt U.S. retailers begin to catch a break

6 October 2017

Yahoo 7 News reports that “an unexpected helping hand from creditors, landlords and vendors is allowing more U.S. retailers to stay in business following bankruptcy with most of their stores and employees in the fold.

The new approach marks a turning point for the beleaguered sector, which has seen at least 19 brick-and-mortar retail chains shut down the bulk of their operations since 2014.”


LEGAL

Standard Chartered chairman urges U.S. to preserve bank resolution regime

13 October 2017

Yahoo 7 News reports that “the chairman of British bank Standard Chartered called on U.S. policymakers to preserve a key post-crisis power that allows bank regulators to wind down a failing lender, even as the Trump administration looks to slash red tape across the financial sector. The comments by Jose Vinals, one of the industry's most senior and influential bankers, will add to growing pressure on the U.S. Treasury to support preserving special bank liquidation powers introduced after the 2007-09 global financial crisis. The Treasury is expected to release a widely anticipated review of the policy in the coming weeks, which was ordered by President Donald Trump in April.”


Ex-CFO of bankrupt law firm avoids prison over fraud conviction

12 October 2017

Australasian Lawyer reports that “The ex-CFO of defunct Dewey & LeBoeuf LLP has escaped a prison sentence for defrauding the firm’s lenders and investors, in what came to be the largest collapse of a law firm in US history. Instead, New York Supreme Court Judge Robert Stolz ordered Joel Sanders on Tuesday to pay a US$1m fine and render 750 hours of community service.”


The bankrupt utility behind Puerto Rico’s power crisis

4 October 2017

Yahoo 7 News reports that “restoring the grid after the worst storm to hit here in nine decades would be a monumental task even for a well-run utility. It will be much harder for the chronically underfunded Puerto Rico Electric Power Authority (PREPA), which went bankrupt in July amid mounting maintenance problems, years-long battles with creditors, a shrinking workforce and frequent management turnover.”


Creditors approached Puerto Rico with offers after Maria: official

3 October 2017

Yahoo 7 News reports that “creditors approached Puerto Rico's government with offers surrounding the U.S. territory's bankruptcy after Hurricane Maria tore through the island last month, but federal aid remains the top priority, a Puerto Rico official said on Monday. "Any offer we’ll review it, and we’ll discuss it with the oversight board and their advisers," said Christian Sobrino, Governor Ricardo Rossello's official liaison to the federally appointed Financial Oversight and Management Board.”


Caesars cancels webcast after Vegas shooting, bankruptcy exit on track

3 October 2017

Yahoo 7 News reports that “Caesars Entertainment Corp cancelled an investor webcast on Monday following a deadly mass shooting in U.S. casino hub Las Vegas, but a spokesman said its main operating unit's emergence from a near three-year bankruptcy was still on track for this week. Earlier, Caesars said its unit, Caesars Entertainment Operating Co Inc (CEOC), was set to end a long and costly bankruptcy by Oct. 6 after receiving a series of approvals from gaming authorities and shareholders.”


AFRICA

INVESTMENT

Manalto ex-chairman says he is ‘deeply sorry’ after staff go unpaid

30 October 2017

Stockhead reports that “the former employees of a Manalto subsidiary say their salaries have gone unpaid since they were locked out of their office in July. Josef van Niekerk, a former developer at Soshlr – a South African subsidiary of ASX-listed social media manager Manalto — told Stockhead he and about 30 other staff were abruptly locked out of the firm’s Cape Town office on July 26. Soshlr was set up by Manalto (ASX:MTL) founder Anthony Owen in 2016 to build a social media management tool for small to medium businesses.”

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