Creditors' voluntary liquidation

BRI Ferrier may be appointed as creditors’ voluntary liquidator when an insolvent company’s directors and shareholders resolve to liquidate the company, or when creditors vote for liquidation following a voluntary administration.

Through a creditors’ voluntary liquidation appointment, we take control of the business to facilitate an orderly winding down of its operations and, where possible, provide a return to creditors.

The aim is to achieve the best outcome for creditors by:

  • realising assets
  • investigating affairs
  • considering the sale of business
  • reporting to ASIC and statutory bodies
  • pursuing voidable recoveries
  • mitigating directors’ exposure (through a timely director penalty notice).

Where possible, in a creditors’ voluntary liquidation appointment, we’ll facilitate the sale of the business so it can continue as a going concern to maximise return to creditors.

 

CASE STUDIES

Mothercare

ASX-listed retailer Mothercare Australia Limited faced financial distress after a proposed sale of the business failed. Mothercare Australia had 47 stores (trading under the Mothercare Australia, Kids Central, Early Learning Centre and Baby on a Budget brands) and more than 500 employees across Australia and New Zealand. BRI Ferrier was appointed as voluntary administrator of the company and its trading subsidiaries and subsequently creditors’ voluntary liquidator. As a sale of the business as a going concern was not possible, we sought to maximise recoveries for creditors. We traded the business over a 4-month period to sell down the stock profitably through a targeted, sophisticated process involving teams in all states. Ultimately we realised in excess of $18 million for the stock, which funded the payment of all employee entitlements and a significant return to trade and secured creditors.

Old Kiama Wharf Company

BRI Ferrier was appointed as voluntary administrator and then liquidator of The Old Kiama Wharf Company Pty Ltd, a seafood restaurant. Prior to the appointment, the company’s director transferred the company's assets, including a valuable crown lease, to a related party. This left company debts of $365,000 to priority creditors and $3.5 million to unsecured creditors. After extensive investigation into the company’s affairs, the business was placed into a creditors’ voluntary liquidation and proceedings were initiated to undo the transfer, which successfully recovered the assets for the benefit of the creditors. The business was then sold, the crown lease transferred, and all monies owing to both the secured and unsecured creditors were paid.

Venture Solutions Australia

Venture Solutions was a labour hire company employing 23 staff and 200 casuals with an annual turnover of $10 million and debts of approximately $4.7 million. In 2011 the company was subject to a creditors’ voluntary liquidation. BRI Ferrier sold the business, repaid the secured creditor in full, retained employment of staff and minimised disruption to the company’s customers whose contracts are continuing via the purchaser.

Bas Phillips

In 2012 Bas Phillips, a retailer of Manchester for over 70 years, was subject to a creditors’ voluntary liquidation. BRI Ferrier undertook a marketing campaign and facilitated a sale of the business, preserving a long-standing Australian brand and achieving a satisfying result for the secured creditor.

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