ABOUT US OUR PEOPLE Andre Strazdins

Meet Our People

Andre Strazdins

Andre Strazdins

Principal,

When advising clients facing financial difficulties I strongly believe they need to be made aware of all their options, be they simple or lateral solutions including the potential upsides and downsides. Only then can they be in a position to make an informed decision to achieve the best result given the circumstances. I have no doubt that our local experience combined with the unquestionable expertise of Ian Ferrier and Tony Hodgson, the team at BRI Ferrier can deliver strong results for businesses throughout Australia.

Andre is a registered liquidator and founding principal of BRI Ferrier with 25 years’ experience in insolvency and corporate recovery. Prior to specialising in distressed financial management, he spent five years in management accounting as a senior government official. Commencing his insolvency career during the ’90’s downturn, Andre’s involvement with major corporate collapses such as the Bond group of companies provided him with a strong foundation in insolvency. Andre provides services in all aspects of corporate recovery and reconstruction from small family companies to substantial operations employing several hundred people. He has conducted work for all of the major financial institutions within Australia and has extensive experience with business rehabilitation and rescue in the SME market. Andre’s experience extends across a broad range of traditional industries including building, construction, hospitality and agribusiness and has specific experience in restructuring finance lenders such as Harrison Finance, EIL Finance and Excel Finance.

Career Highlights
  • In 1998 Andre developed, as the representative of the ICAA and in conjunction with the South Australian State Government, a pilot program to provide business support within the state. As a result, the Business Helpline was established and in 2001 Andre as a network member, received the Prime Minister’s Award for Excellence in Business Partnerships.
Experience
  • Appointed administrator to Castellan Plumbing Pty Limited, a commercial plumbing business employing 25 staff. On appointment, Andre traded the business completing 15 commercial contracts in conjunction with managing the Back Flow shop, a retail outlet and pressure testing business. Subsequently, Andre sold the remaining assets, paid all employee entitlements in full and negotiated a partial return to the secured creditor. Further realisations are still underway.
  • Jointly appointed by Westpac Banking Corporation as Receiver and Manager of Timber Tech Engineering Pty Ltd, a manufacturing business supplying specialist equipment to the timber industry. Andre retained the 50- strong workforce and traded the business for five months while it was advertised for sale. Eventually the business was sold to a well-known timber mill and merchant maintaining the business as a going concern and retaining the majority of staff. A substantial percentage owing was subsequently returned to the secured creditor.
  • Jointly appointed as administrator and later Liquidator to Harding and Manning Electrical Pty Ltd, a retailer of 40 years of electrical goods and furniture. Andre traded four stores belonging to the business, while advertising it for sale. He later negotiated a sale of the furniture business, however due to an inability to compete, the electrical division attracted no buyers. Subsequently, Andre reduced stock holdings, fulfilled all employee entitlements, repaid the secured creditor in full, and returned a dividend to unsecured creditors of 75 cents in the dollar.
  • Appointed as joint administrator of Cleco Nominees Pty Ltd, an abattoir, plant and equipment lessor located in the Riverland. Due to licensing issues and quarantine restrictions the operations could not be sold as an abattoir. As such, Andre sold the land and auctioned the plant and equipment. He paid the first and second secured creditors in full and the third secured creditor received a partial distribution.
  • Appointed as joint administrator of MWM Freight Pty Ltd, a nationwide transport business with a fleet of 25 trucks in Adelaide, Melbourne and Sydney. Andre arranged for an orderly wind down of the business and auctioned all assets returning 100 cents in the dollar to employees and 45 cents in the dollar to the secured creditor.
  • Appointed as administrator to CJ Retsas Pty Ltd, a South Australian commercial crayfish and shark fishing business. As the receivers sold the company’s licenses effectively prohibiting further trade, Andre sold key assets. Subsequently, creditors were paid 100 cents in the dollar with the Director retaining all of his craypots, nets, a vessel and pertinent equipment to continue commercial fishing with another operation.
Qualifications And Memberships
  • Registered liquidator
  • Member, CPA Certified Practising Accountant Australia
  • Member, TMA Turnaround Management Association
  • Member, MICM Australian Institute of Credit Management
  • Member, Insolvency International
  • Fellow Member, FIPA Institute of Public Accountants
  • Associate Member, Chartered Accountants Australia New Zealand
  • Member, Australian Restructuring Insolvency and Turnaround Association
  • Post Graduate Diploma in Accounting – Flinders University
  • Bachelor of Arts in Economics – Flinders University

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Insights by Andre Strazdins
Video 3 – SME restructuring legislation in detail – how it will work, creditor impact, ipso facto, practicalities, what if it fails.
Sun Dec 8News and Opinions

Video 3 – SME restructuring legislation in detail – how it will work, creditor impact, ipso facto, practicalities, what if it fails.

BRI Ferrier Adelaide Principal Andre Strazdins continues our weekly series of Insolvency Reforms for Small Business videos. This week, Andre discusses SME restructuring legislation in detail – how it will work, creditor impact, ipso facto, practicalities and what if it fails.  These videos aim to provide small businesses with a practical insight into what these changes mean, giving them the opportunity to again survive post 31 December. [video width="960" height="540" mp4="https://briferrier.com.au/wp-content/uploads/2024/12/video3-051120.mp4"][/video]  
Voluntary administrations
Thu Aug 4Inside Edge

Voluntary administrations

Introduction An earlier edition of Inside Edge highlighted problems with informal deeds of arrangement. As an update, we are aware that the company referred to in that edition was being pursued through the courts by creditors who are not satisfied with the arrangement. Accordingly, we understand the company was forced to suspend repayments pursuant to the arrangement to direct cash flow to the creditors pressing for payment. Ultimately, that company entered voluntary administration and then liquidation. This highlights the danger of the original process and reinforces the need for an arrangement that’s legally binding on all creditors and conducted by a registered insolvency and restructuring specialist. Voluntary administration is one such arrangement.
The voluntary administration process The primary purpose of voluntary administration is to maximise the chance of a company continuing in operation. The voluntary administration process provides for:
  • the appointment of an independent, experienced insolvency practitioner (registered with ASIC) to take control of the company’s operations
  • a moratorium on action by creditors (except secured creditors)
  • an opportunity for the company’s director(s) to propose an arrangement with creditors
  • an independent assessment of the proposal by the appointed insolvency practitioner
  • a formal recommendation by the insolvency practitioner as to whether the creditors are best served by accepting the proposal
  • all unsecured creditors to be bound by the decision of the majority of creditors as to the company’s future.
Voluntary administration is often used to provide protection for an otherwise viable company that has encountered financial difficulty due to circumstances possibly beyond its control, such as:
  • significant bad debts
  • loss of a major contract
  • legislative change
  • a one-off catastrophic event
  • withdrawal of a financier’s support.
Voluntary administration may also be used to restructure a company that has ventured away from its core business or needs to move into a new product, service or market category. The formal appointment of a voluntary administrator can give a business time to recover without pressure from creditors.
Types of proposals for deeds of company arrangement Under voluntary administration, the exact terms of the proposal to creditors for a deed of company arrangement will, of course, depend on the unique circumstances of each company. The three main types of proposals we often see are:
  • contributions from future profits
  • claims of related parties being deferred to allow a greater return to external creditors
  • equity injection.
The proposal may comprise a combination of the above solutions and is always customised to the situation. Our experience enables us to determine whether or not the proposal may be acceptable to creditors. The terms of the proposal are, of course, up to the director(s) of the company to determine.
Warning signs There are several warning signs that indicate a company may require a voluntary administration, including:
  • ATO debt accruing
  • statutory authorities (eg. payroll tax) not being paid
  • rental arrears
  • continuing trading losses
  • payment arrangements with key suppliers
  • demand letters from creditors
  • creditors withholding supply.

Keys to success The keys to a successful voluntary administration, resulting in a deed of company arrangement, include:
  • early identification that the company is suffering cash flow difficulties, may be insolvent and seeking advice on available options
  • determining whether the underlying business is viable. There is little benefit to any stakeholders if a company goes through the voluntary administration process only to fail a few months later
  • formulating the correct restructuring strategy to rectify the cause of the cash flow difficulties.

Why your clients should seek advice early In our experience, directors of companies in these circumstances often adopt a ‘head in the sand’ mentality rather than seek early advice on available options. This denial of the problem in the hope that ‘things will get better’ is often to their detriment, for two main reasons:
  • It will be more difficult for insolvency practitioners to assist, as creditors are less likely to be receptive to a proposal for a deed of company arrangement if the directors have made promises that haven’t been kept, and therefore lack credibility
  • The directors are likely to expose any remaining personal assets to a claim by a liquidator for insolvent trading.
  • In the event that the business cannot be saved, voluntary administration may still be appropriate if the proposal for a deed of company arrangement provides a better return to creditors of the company than would result from liquidation. It also provides the added benefit of potentially avoiding legal claims by a liquidator (such as insolvent trading claims).

Help The financial problems of a business may often be resolved without the need of a formal insolvency appointment such as a voluntary administration. In general terms, a registered insolvency practitioner can advise whether or not your client needs a voluntary administration. If you or your client feel uncomfortable with the advice already received, a second opinion may identify other options or alleviate concerns. The principals and directors of BRI Ferrier are available to assist you or your clients in assessing their position on a free, confidential and no-obligation basis. Contact us today. Download this Inside Edge Bulletin.