Receivership

BRI Ferrier has acted for all of Australia’s first and second tier lenders as receiver and manager of distressed businesses.

As receiver, we take control of a specific asset or entire business that is subject to security, typically held by a bank, and take steps to realise the value for the best possible outcome to the secured creditor.

We collaborate with management, employees, unions, customers, suppliers and stakeholders to preserve and maximise the value of businesses. We act quickly and effectively to mitigate risks and achieve the best possible returns for secured creditors.

 

CASE STUDIES

Australia’s largest cashew farm

After BRI Ferrier was appointed as receiver to Australia’s largest cashew farm, based in North Queensland, the business traded for 10 months to maintain the health and value of the producing trees. The property was ultimately sold as a going concern, with the secured creditor paid in full.

Bundaberg Retail Investment

BRI Ferrier was appointed as receiver and manager to Bundaberg Retail Investment, a shopping centre in Bundaberg, Queensland. With the centre falling into disrepair and tenants failing to renew their leases, the first priority was to enhance and rehabilitate the property. BRI Ferrier then initiated possession, collected rent, effected necessary improvements and engaged new tenants. This matter is ongoing.

Carefree Holdings

Carefree Holdings Pty Ltd was the owner of a strata property in Pitt Street, Sydney. When appointed by a financier as receiver and manager, BRI Ferrier managed the leased strata units while initiating a sale process. The units were sold in ‘one line’, thereby achieving the best possible result for the secured creditor.

Timber Tech Engineering

Westpac Banking Corporation appointed BRI Ferrier as joint receiver and manager of Timber Tech Engineering Pty Ltd, a manufacturing business that supplies specialist equipment to the timber industry. We retained the 50-strong workforce and traded the business for five months while it was advertised for sale. The business was eventually sold as a going concern and most of the employees were retained. A substantial percentage owing was also returned to the secured creditor.

Northeast Developments

BRI Ferrier was appointed as receiver and manager to Northeast Developments, a vacant, distressed neighbourhood shopping centre in Toongabbie NSW with a development application (DA) for a 144-unit residential development above. Limited by an unfeasible design, an opportunity was identified to reposition the asset through a Section 96 DA amendment. By securing key tenancies to activate rental payments under the major tenancy lease, the asset’s cash flow was transformed from a $1 million shortfall to neutral. A suitable purchaser was successfully identified and a sale was negotiated, off-market, at a value that exceeded the financier’s expectations.

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