February News Digest – Business Insolvency and Turnaround

01 March 2018

The following are summaries of media stories related to business turnaround and insolvency in Australia during February 2018.


Australia

Property and Construction

Subcontractors and clients of collapsed Gold Coast builder Future Urban Residential owed thousands

28 February 2018

Gold Coast Bulletin reports that “collapsed builder Future Urban Residential sent a concreting subcontractor to work on two job sites despite already allegedly owing thousands of dollars to other small businesses.”

CBL in administration, but at least its boss should have cash to see him through

27 February 2018

The Australian Financial Review reports that “they say hindsight is 20-20, but nonetheless, the administration of Kiwi insurer CBL certainly makes for some delicious ironies. CBL, which was dual-listed on the ASX and NZX, is in a spot of bother after the New Zealand High Court put its French construction division into interim liquidation last week.”

Downer and The Adventure Group join forces to help vets and execs

27 February 2018

The Courier Mail reports that “you might recall that CRCG-Rimfire, a joint venture between China Railway Construction Group and local Brisbane building firm Rimfire Constructions, went into voluntary administration in November only two years after its launch.”

BCL Group collapse hits WA subcontractors with big debts in fresh blow for building industry

26 February 2018

ABC Radio Australia reports that “West Australian subcontractors are saddled with further debts totalling hundreds of thousands of dollars with major civil landscaping company BCL Group going into liquidation — and there are fears more builders could go under.”

Formica sale on cards as Fletcher lenders smell blood

22 February 2018

The Australian reports that “Fletcher Building’s US-based lenders are believed to have called on advisers to assist in protecting their position after the Australasian company this month revealed its debt levels had broken through the barrier that they had earlier agreed was acceptable. As the company yesterday revealed a $NZ273 million ($254m) loss for the six months to December, speculation was mounting that the Australia and New Zealand-listed business was now mulling a sale of its Formica division in the US to private equity.”

Businesses left reeling after Mandurah building company Colista Homes goes into liquidation

21 February 2018

Mandurah Coastal Times reports that “dozens of local businesses have been left reeling after Mandurah building company Cole Building Pty Ltd went into liquidation last month. Trading as Colista Homes and Colista Constructions, the company went into liquidation on January 31.”

Dodgy, bankrupt builder extradited from the Gold Coast on fraud charges

16 February 2018

myGC.com.au reports that “a dodgy, bankrupt builder who was banned from working in the industry five years ago has been arrested on the Gold Coast and extradited to Newcastle on fraud charges. Matthew Rixon, 33, was the subject of an arrest warrant issued in NSW on January 12 after he failed to appear in the NSW Supreme Court.”

Unique Estates goes under, with 30 jobs to go

15 February 2018

The Australian reports that “the plans of more than 100 home vendors in Australia and around the world have been thrown into disarray with administrators appointed “joint managers” over one of Australia’s top luxury real estate agencies, Unique Estates, with the company confirming in an email to staff it is unable to pay wages.”

CQ construction firm folds, owing over $2 million

13 February 2018

The Morning Bulletin reports that “Rockhampton civil and mine site construction company Busby Contracting Pty Ltd has gone into voluntary liquidation owing more than $2 million to creditors, employees and the tax office. The decision to wind the company up came at a general meeting held in Brisbane on February 5.”

Craigieburn has the third highest number of insolvencies across Australia, data shows

13 February 2018

The Herald Sun reports that “property powerhouse Craigieburn has the third highest rate of people declaring bankruptcy in Australia due to record mortgages and lacklustre wage growth, alarming data reveals. The suburb has been hit by financial stress with 88 people recording personal insolvencies in 2017, according to a report by credit information bureau illion.”

Plumber, owed $100k, one of 77 victims in GJ Gardner Bathurst's collapse

8 February 2018

The Western Advocate reports that “Geoff Bennett is owed more than $100,000 by the directors of GJ Gardner Homes Bathurst – and he will never see a cent of it. Mr. Bennett is one of 77 creditors caught up in the collapse of the business, which went into liquidation in August last year. Collectively the directors of the company, which had been trading as Aluka Constructions, owe unsecured creditors in excess of $1.3 million – none of which is likely to ever be repaid.“

Cooper and Oxley into administration

8 February 2018

SBS reports that “embattled building companies Cooper & Oxley, and Cooper & Oxley WA have entered voluntary administration, which could leave some local subcontractors up to $1 million out of pocket. Administrators will assess the companies' finances, including examining current projects. The company's director is proposing a deed of company arrangement to allow trading to continue.”

Subcontractors stop work as major WA builder signals cashflow trouble

5 February 2018

WA Today reports that “a West Australian builder with a long history of delivering major commercial projects has confirmed that all work has been suspended on its seven active sites at it undertakes a "review of its financial position."”

Osborne Park builder Choice Living Homes enters voluntary administration

1 February 2018

The Adelaide Advertiser reports that “Building Commissioner Ken Bowron temporarily suspended its building contractor registration last week because of concerns about its financial position and late yesterday announced it had voluntary agreed to external administration.”


Mining

Clive Palmer launches $2.6b writ against Chinese foe CITIC

27 February 2018

The West Australian reports that “Clive Palmer has fired another massive shot in his continuing legal war against Chinese conglomerate CITIC, claiming its failure to pay him iron ore royalties led to the downfall of Palmer Petroleum — prompting him to launch a $2.675 billion writ in WA’s Supreme Court.”

Glencore key to Wiggins Island coal debt deal

22 February 2018

The Australian reports that “lenders to the Wiggins Island Coal Export Terminal are scheduled to meet next Wednesday to vote on a five-year extension from a critical September deadline for the repayment of its loans.

Terms of the proposal are believed to include interest payments of 4.5 per cent with a 15-year amortisation period.”

Northern Territory Government approves restart of defunct Roper Bar iron ore mine

15 February 2018

ABC News Online reports that “a defunct iron ore mine project in the Roper River region has been given the green light to restart operations by the Northern Territory Government. International shipping and mining company British Marine, which also has an interest in Queensland bauxite operations, has invested in the mine through its subsidiary Britmar (Aust).”

Clive Mensink, Clive Palmer’s fugitive nephew found in Europe

11 February 2018

The Australian reports that “fugitive Australian businessman Clive Mensink, on the run for 20 months, has been found living the high life in Europe having shed a dramatic amount of weight. The nephew of Clive Palmer, wanted after failing to return to Australia to testify about the collapse of Clive’s Queensland Nickel, was tracked down by News Corp journalist Ellen Whinnett after a year-long investigation.”


Retail

Retailer in liquidation owing $2.8 million

28 February 2018

The Chronicle reports that “a Queensland-owned and operated organic retailer has gone into liquidation, owing $2.8 million to more than 200 creditors. Wray Organic Pty Ltd, which operates stores under the Wray Organic banner in Toowoomba, Ipswich, and Newmarket, was established by owner Deborah Wray and her partner Gary Davis at Palm Beach on the Gold Coast in 2005.”

Carlyle, TPG circling Steinhoff

27 February 2018

The Australian reports that “The Carlyle Group and TPG Capital are believed to be scrutinising the Australian arm of Steinhoff in preparation for an anticipated sale of the company that owns Freedom Furniture, Fantastic Furniture and Best and Less. It comes as Blackstone and Kohlberg Kravis Roberts are also positioning themselves for a highly anticipated divestment.”

Collapse of shopping centre kiosk business John’s Nuts has left franchisees in “terrible condition”, says administrator

23 February 2018

SmartCompany reports that “the administrator of collapsed snack business John’s Nuts says franchisees have been left in a very challenging condition after the company entered voluntary administration at the end of January.”

Vicars to bid for Oroton after rent negotiation

23 February 2018

The Australian reports that “Oroton appears to have been handed a lifeline from fund manager Will Vicars, who has secured a deal with the retailer’s landlords that will lead to a bid for the company. Rent negotiations between Mr. Vicars and a string of nearly 20 individual landlords are close to being finalised.”

Melbourne tech retailer enters liquidation

22 February 208

ARN reports that “Melbourne-based online technology retailer, Warehouse1, has been placed into liquidation. The company, which claims a physical retail outlet in Melbourne’s Docklands along with an online store, made a name for itself selling equipment from a number of vendors, including Acer, Dell, Apple, HP and Seagate, among others.”

Krispy Kreme sale is sweet deal for John Kinghorn, John McGuigan

21 February 2018

The Australian Financial Review reports that “the major shareholders of Krispy Kreme Australia, RAMS founder John Kinghorn and John McGuigan, will pocket about $150 million from the sale of the business back to its US parent company. A deal was signed at the weekend for Krispy Kreme to take back control of the doughnut chain that has endured a torrid time in Australia over the past decade.”

Franchise Retail Brands rescue offer falls over

19 February 2018

The Courier Mail reports that “the withdrawal of the offer means creditors might put Franchise Retail Brands, franchisor for brands such as New York Slice and 1582 Coffee, into liquidation, according to administrators GM Insolvency. Franchise Brands fell into administration last month.”

No buyers come forward to save embattled Live Clothing stores and jobs

15 February 2018

The West Australian reports that “WA streetwear retail chain Live Clothing’s stores will be closed over the next month with the loss of about 90 jobs following failed efforts to save the business. However, the insolvency experts managing the failed 24-year-old business have emphasised they are still open to offers for all or parts of Live from interested parties.”

Existential crisis: Even Solly Lew will struggle to save Myer

14 February 2018

The Sydney Morning Herald reports “can retail billionaire Solly Lew save Myer? Myer’s survival in its current form must overtake all other concerns and become the main focus for all who have a stake in the outcome. Whether its largest shareholder and second-largest supplier, Lew's Premier Investments, wins the battle to control its board is of secondary importance.”

Disgruntled Dick Smith investors get their day in court

12 February 2018

ARN reports that “one of the two class actions being launched against Dick Smith Holdings has been given the green light to go ahead by the Supreme Court of NSW, joining at least two other associated legal cases in the process. The latest class action is being brought against the entity remaining following the retailer’s collapse in 2016 -- now under the control of receivers, Ferrier Hodgson -- by Johnson Winter & Slattery, in partnership with Investor Claim Partner (ICP).”

Buy-back of luxury bridal house Pallas preserves jobs

9 February 2018

The West Australian reports that “the co-founder of luxury bridal house Pallas has bought back the business out of administration, preserving most of its 30 jobs. Pallas’ creditors on Wednesday approved a deed of company arrangement floated by Joy Morris, the designer behind the business, saying it represented the best option for employees.”

“It’s 100% absolutely impossible”: Sydney business says exorbitant retail rents forced it to trade Mosman store for a warehouse after 30 years

9 February 2018

SmartCompany reports that “an independent retailer in Sydney has hit out at commercial landlords, saying exorbitant rents forced her business to relocate from its home in Mosman after nearly three decades.”

Geoff Levy behind Specialty Fashion Group buyout proposal

7 February 2018

The Australian reports that “high-profile businessman Geoff Levy is believed to be backing a partial buyout proposal of Specialty Fashion Group led by its former chief executive Gary Perlstein, in a deal that may provide a desperately needed lifeline to the struggling retailer. The Australian believes the company’s co-founder and former director, Ian Miller, is also involved.”

Leading Edge store enters liquidation leaving $1.2M in debt

7 February 2018

ARN reports that “Leading Edge Computers member store, Coffs Computing Services, has been placed in liquidation owing $1.2 million to creditors. The company was registered with the Australian Securities and Investments Commission (ASIC) in March 2001 as Webtrap Pty Limited.”

Steinhoff Asia Pacific weighs up local management buyout

5 February 2018

The Australian reports that “top executives at Steinhoff Asia Pacific are understood to be weighing a management buyout of the local operation that controls Freedom Furniture, Harris Scarfe and Fantastic Furniture. Sources say such a deal could see the management and its backers write a cheque for somewhere between $500 million and $1 billion.”

Retailer falls into administration after 69 years

2 February 2018

My Business reports that “2018 looks set to be another hard year for the retail sector, with news a retailer operating for almost seven decades is the latest casualty of the industry malaise. Kangaroo Tent City & BBQs, an NSW manufacturer and retailer of camping and outdoor gear, announced its collapse on 2 February.”

Petra Hair Care collapses into liquidation

2 February 2018

The Sydney Morning Herald reports that “Petra Hair Care has collapsed into liquidation after 52 years in business. The chain started business as a hairdressing salon in Melbourne's Elizabeth Street in July 1966 where it became apparent there was a market for selling hair care to the home.”

The Outdoor Furniture Specialists Go into Voluntary Administration

1 February 2018

Power Retail reports that “bricks and mortar retailer The Outdoor Furniture Specialists has followed in the footsteps of other homegrown brands such as Maggie T and Diana Ferrari – announcing that it will be entering into voluntary administration.”


Tourism and Hospitality

Popular Moreton Bay Sports Club ceases trading after going into liquidation

27 February 2018

The Courier Mail reports that “Council is offering all the support it can,” Cr Murphy said. “The lease has a range of conditions, such as a club must support the sports on site.” Cr Murphy was hopeful a new club could “rise from the ashes”. “Moreton Bay Sports Club was popular but there were significant historical debt issues.” he said.”

New restaurant opens in Wood St

13 February 2018

The Daily Mercury reports that “less than 48 hours after it was announced that Cactus Jacks had closed its doors, a new restaurant has sprung up in its place. Announcing the news via Facebook tonight, it's been revealed 'AM Restaurant' has opened in place of the Mexican eatery.”

Hotel rebuild gets started

9 February 2018

The West Australian reports “the $3.5 million reconstruction of Wiluna’s Club Hotel into a new administration centre has begun, less than a year after the local council bought the 85-year-old pub. It was put up for sale in 2016 after its previous owner went into voluntary administration.”

Administrators close Belmont Sporties Club after ongoing financial trouble

8 February 2018

The Newcastle Herald reports that “a well-known Lake Macquarie venue has closed its doors, after ongoing financial trouble. Patrons learned of the decision to shut Belmont Sporties Club after a letter from administrator Geoff Davis was stuck in the venue’s front window.”

Broome RSL goes into voluntary administration

8 February 2018

The West Australian reports that “Broome’s RSL branch will be going back to basics after going into voluntary administration. RSL WA has appointed former Shire president Graeme Campbell as the administrator to be the operation’s “arms and legs.” Mr. Campbell said several changes at the Broome RSL had caused a significant loss in revenue such as expanding menus and longer working hours.”

AFTA revokes two agency accreditations after liquidation

2 February 2018

Travel Weekly reports that “TalkTravel Tuggerah and Inca Tours have both been stripped of their ATAS travel accredited status after liquidators were called in to close down the businesses. The Australian Federation of Travel Agents (AFTA) was contacted by appointed liquidator, Jirsch Sutherland, who has commenced the process of winding up the business, with both companies based in NSW under common ownership.”

Les Bubbles owed $1.2 million when administrators arrived

2 February 2018

The Sydney Morning Herald reports that “Queensland hospitality mogul Damian Griffith's Les Bubbles company may have been insolvent within the first year of its inception, administrators allege. On Thursday, creditors voted to place Bubbles Bar & Bistro Pty Ltd into liquidation.”


Communications

Rolling Stone Australia's future in doubt as publisher goes into administration

25 January 2018

ABC News reports that “the future of Rolling Stone Australia, the local edition of what has long been considered the rock and roll bible, looks to be in doubt, with the magazine understood to be ceasing publication. Publisher Paper Riot Pty Ltd has gone into external administration, according to an ASIC filing, signalling the end for the magazine, which has a small staff based in Sydney.”


Technology

How Precedent Communications, the company behind the Red Cross data breach, went bust

26 February 2018

CRN reports that “Precedent Communications was operating at a substantial loss in the years leading up to the website developer being blamed for the biggest data breach in Australian history. The company fell into liquidation in December last year, 13 months after it was revealed that the personal records of 550,000 donors to the Red Cross Blood Service were exposed online. Precedent had been engaged to redesign and maintain the Red Cross' core website in 2015.”

Failed Sydney predictive analytics vendor Veriluma gets $660,000 lifeline

22 February 2018

CRN reports that “creditors of capsized Sydney analytics software vendor Veriluma have accepted a $660,000 acquisition proposal from wholesale investor Canary Capital. Canary was one of several potential suitors for Veriluma’s two entities, Veriluma Limited and Veriluma Software. Administrators had been sizing up their rival bids to recapitalise the ASX-listed company, which fell over in late 2017 after ongoing cash-flow difficulties and millions in losses.”

Philips Sound Distributor Facing Bankruptcy

20 February 2018

Channel News reports that “Gibson Brands the Company that distributes Philips sound products worldwide is facing bankruptcy a move that could hurt Powermove the local distributor if it happens. Parent Company Gibson who appear to be in trouble, was made famous by their guitars which were used by big name musicians Chuck Berry, Marc Bolan, Eric Clapton, Sheryl Crow, Bob Dylan, The Edge, Dave Grohl, Jimi Hendrix and the Beatles.”

Kodak: from bankruptcy to blockchain

11 January 2018

ACS Information Age asks “could a new cryptocurrency protect intellectual property and “democratise” photography in the world of piracy? 130-year-old American camera company, Kodak, seems to believe it can, after it announced its new KODAKOne blockchain image rights management platform and KODAKCoin cryptocurrency at the International Consumer Electronics Show (CES) in Las Vegas.”


Health

Sex clinic founder declared bankrupt

1 February 2018

SBS reports that “a director of a company that took advantage of men suffering sexual dysfunction has been declared bankrupt after failing to pay the consumer watchdog's legal costs. Jacov Vaisman is the former director of the Advanced Medical Institute (AMI) and NRM, the company that bought AMI and continued to operate the business.”


Investment

ASIC predicts Superfunded’s bankruptcy with liquidator application

27 February 2018

Money Management reports that “the Australian Securities and Investments Commission (ASIC) has applied to the Federal Court for a liquidator be appointed for Superfunded, following allegations that the company was both breaking the law and close to being unable to pay its debts.”

CBL Corp in voluntary administration

26 February 2018

The Australian Financial Review reports that “NZX and ASX-listed insurer CBL Corp is in voluntary administration and has appointed an administrator "to preserve value in the interest of all stakeholders" after regulatory issues linked to its European businesses escalated.”

Banksia Securities investors settle for $64m

20 February 2018

The Australian reports that “investors in failed finance group Banksia Securities have settled for more than $100 million less than they originally claimed after ASX-listed Perpetual was unwilling to support a subsidiary targeted in a class action.”

It's business as abnormal at Noble Group

20 February 2018

The Australian Financial Review reports that “shrivelled commodity trader Noble Group insists that it will be able to survive and thrive just as soon as it restructures its debts and gains access to cheap trade finance. Both are now within reach. But heavy losses in 2017 should cast doubt on the merits of saving "new Noble".”

Bankruptcy warning as lawyers resume chase for missing $70m

20 February 2018

The Australian reports that “funds manager Balmain Trilogy says it will pursue Phil Sullivan and other former executives of failed Gold Coast financier City Pacific into bankruptcy if they don’t cough up more than $70 million owed to investors. The warning to former City Pacific boss Sullivan and former credit committee member Thomas Swan comes after the pair, together with the estate of chairman Ian Donaldson, lost a bid to appeal a Full Federal Court judgment against them to the High Court.”

Bankrupt Nathan Tinkler living large in $13.5 million mansion

19 February 2018

The Newcastle Herald reports ”pity the lot of bankrupt billionaire Nathan Tinkler, living in paradise. When the counting was completed in 2016 after he was officially declared bankrupt, Mr. Tinkler’s debts came in at more than $540 million. His wealth was harder to determine, but assets in his name at the end of last year did not realise more than $1 million.”

Mossgreen auction house administrator tells collectors to pay up to get their goods back

17 February 2018

ABC News Online reports that “the administrator of the collapsed auction house Mossgreen is refusing to return consigned goods to more than 1,000 collectors unless it is paid maintenance fees totalling more than $1.4 million. It comes after Mossgreen, renowned for selling artwork and rare collectables, went into voluntary administration in December. The latest development more than triples the number of people set to lose money in the collapse.”

Two shortlisted for Hastings' UTA

9 February 2018

The Australian Financial Review reports that “infrastructure heavyweights IFM Investors and Morrison & Co are locked in a two-way battle for one of the country's biggest infrastructure investment mandates. Street Talk understands the two firms are shortlisted to run Utilities Trust of Australia, a $6 billion infrastructure fund which owns stakes in Perth and Melbourne airports and the Sydney Desalination Plant, among other assets.”

Financial services ordered to pay penalties for super switching advice

8 February 2018

SMSF Adviser reports that “the Federal Court has ordered three companies to pay penalties totalling $7,150,000 after it was found they breached financial services laws in relation to the provision of loans and superannuation switching advice.”

Investors lick wounds as coin boss does time

8 February 2018

The Great Southern Weekender reports that “as he stepped into the dock of the District Court on Monday, the bankrupt former director of Albany’s Rare Coin Company, knowing he would go to jail, turned and mouthed ‘I love you’ to his wife and one-time business partner, Barbara.”

Tasmanian bankruptcies decline, economy on the up in new figures

1 February 2018

The Examiner reports that “the number of Tasmanian companies declaring bankruptcy is decreasing, according to the latest Tasmanian treasury figures. Tasmanian bankruptcies dropped by 4.9 per cent in the December quarter, while nationally bankruptcies rose by 1.3 per cent during the same period.”


Legal

PPB seeks to freeze assets of ex-partner David Leigh, amid funds probe

23 February 2018

The Australian reports that “insolvency firm PPB has applied to the Supreme Court of Queensland to freeze up to $900,000 worth of assets from former partner David Leigh, amid allegations that funds were “improperly taken” from a business PBB was in the process of liquidating.”

Troy Palmer in $27m debt deal to avoid bankruptcy

17 February 2018

The Newcastle Herald reports that “Troy Palmer was a man of ambition. In 2008, the Maitland-born chartered accountant made an unsolicited approach that changed his life.  He reached out to Nathan Tinkler – a decision that resulted in him becoming the trusted lieutenant to the suddenly cashed-up mining tycoon. But in August 2014, it was all falling apart, especially his relationship with Mr. Tinkler, an erratic former Muswellbrook electrician who, according to BRW magazine, became Australia's youngest billionaire in 2011, only to be declared bankrupt five years later.”

Govt seeks bankruptcy alternative reform

13 February 2018

SBS reports that “evidence of debt agreement rip-offs has prompted a proposal for the most comprehensive reforms in a decade, the government says. The use of debt agreements to avoid bankruptcy has boomed over the last decade and needs reforming, Attorney-General Christian Porter says.”

Jail sentence ruled out for former CIO’s contempt of court

8 February 2018

Lawyer’s Weekly reports that “the former chief information officer of an aged care software company has avoided imprisonment after being found in contempt of court. In the NSW Supreme Court on 2 February 2018, Chief Justice in Equity Julie Ward made orders in Mirus Australia Pty Ltd v Gage [2018] NSWSC 35.”

Brierty creditors vote for liquidation

8 February 2018

The West Australian reports that “creditors of Brierty have voted to liquidate the collapsed contracting company, allowing insolvency specialists to further probe alleged insolvent trading and payments to directors and executives. Brierty was put into administration last September with debts of about $60 million after failing to recover from a financially disastrous road project.”

The $10 million question: what did Ray Walker do with his clients' money?

8 February 2018

The Sydney Morning Herald reports that “it's the $10 million question that packed a Federal Court bankruptcy hearing in Sydney on Wednesday. What did fraudster Newcastle accountant Ray Walker, who stabbed himself to death in the heart, aged 67, do with the life savings and super funds he stole from 70 known creditors, mainly ageing Hunter residents?”

Bill Lewski pays zero to walk away from $190m suit, investors get zip

6 February 2018

The Sydney Morning Herald reports that “controversially forgetful businessman Bill Lewski has paid nothing to walk away from $190 million in civil claims brought against him, his fellow directors and advisers to retirement village outfit Prime Trust. Fairfax Media can reveal the completion of one of Australia's most torrid and long-running insolvency legal actions that involved high profile Prime directors Michael Wooldridge, a former Howard Minister, and Peter Clarke, the former Vice President of the Liberal Party in Victoria and former Places Victoria head.”

Former director pleads guilty to stealing company funds

5 February 2018

My Business reports that “the former director of a Victorian business has pleaded guilty to illegally withdrawing funds from her business while in liquidation, despite the business having debts of over $700,000.

Lorraine Bullock is a former director of Twenty12, a liquor store that operated in Healesville, Victoria.”


Primary Industry

Quintis Sandalwood breakaway group secures more plantations

27 February 2018

The West Australian reports that “breakaway Quintis sandalwood growers are rolling up support, winning three more projects encompassing hundreds of hectares of trees outside Kununurra. The Sandalwood Growers Co-op said yesterday growers in the 2004, 2004 premium and 2005 managed investment schemes had also filed notices of termination to dump the failed Quintis as the manager of their plantations.”

Crossroads for cattle herd

20 February 2018

Queensland Country Life reports that “recent heatwave conditions and last week’s massive offloading of cattle in Queensland sale yards has raised the spectre once again of the Australian cattle herd moving into a liquidation phase.”

Connections project: Non-payment claims plague $2b modernisation

8 February 2018

The Weekly Times reports that “irrigators have warned the reputation of Victoria’s $2 billion Connections irrigation modernisation project is at risk as details emerge of a key project manager’s financial history. The Weekly Times has found Connections Project contractor Aqua Infrastructure’s general manager Noel Smyth was previously a director of Setlow Constructions, which went into liquidation in 2011.”

Business as usual at Mt Romance

1 February 2018

The Great Southern Weekender reports that “receivers for the embattled company that runs Albany’s Mt Romance sandalwood factory have assured workers their services are still required. A spokesman for receivers told The Weekender his firm wanted the Quintis Group, including Mt Romance in Albany, to keep trading while options including recapitalisation or sale were explored. “Retaining a strong base of existing employees is an important part of continuing operations on a business-as-usual footing,” he said.”


Education

Failed college administrators following bewildering money trail

14 February 2018

The Australian reports that “about nine days before his company collapsed in 2016, the chief executive of one of Australia’s biggest failed colleges asked for 11 weeks of his unpaid leave to be paid out in cash. On September 19, 2016, eight days before he asked for the leave payout, the company had paid out a $34 million dividend — the latest in a string of what a liquidator later described as “unreasonable” payments to shareholders — even though the college’s costs had been exceeding its income for around six months.”

Closure of Castlemaine Continuing Education leaves staff saddened

2 February 2018

Bendigo Advertiser reports that “former tutors of Castlemaine Continuing Education have voiced their disappointment and sadness at the decision of the organisation’s board of management to enter voluntary administration. CCE closed its doors on January 15 after more than 30 years of operation, saying in a statement that “significant changes to the education sector as well as shifting community needs and preferences placed the organisation in an untenable financial situation”.”


Entertainment

Gibson have issued a statement in the wake of bankruptcy rumours

20 February 2018

The Industry Observer reports that “yesterday we noted how Gibson could potentially be facing bankruptcy, with the legendary guitar manufacturing company reportedly “running out of time”. Following the leaving of Chief Financial Officer Bill Lawrence, the company appeared to be in dire straits, “as $375 million in senior secured notes mature and $145 million in bank loans become due, if they aren’t refinanced by July.”

This history-making Olympian lost everything, even her medal

19 February 2018

News.com.au reports that “thirty years ago, pioneering figure skater Debi Thomas won the hearts of the world when she won a bronze medal at the Winter Olympics in Calgary. Today she can’t even tell you where that medal is, because it’s owned by the bank. “I lost it to bankruptcy,” Thomas revealed in a two-hour interview with the New York Post. “They can take away the medal, but they can’t take away the fact that I won it.””

Cricket Australia executives fly to US for meetings with CBS

16 February 2018

The Australian reports that “a high-profile Cricket Australia delegation has flown to the US to meet the heads of the CBS network in the hope of drumming up more interest in the next ­television deal. The Australian understands chief executive James Sutherland and executive general manager Ben Amarfio are part of the party that also includes Ten Network executives.”

Limelight Magazine looks for buyer as parent company teeters toward liquidation

9 February 2018

Mumbrella reports that “Arts Illuminated, the publisher of classical music magazine Limelight, is searching for a buyer for its masthead as the company teeters towards liquidation.”

Victoria Square ice rink planned for winter

7 February 2018

The Advertiser reports that “Victoria Square would be frozen over under plans for a pop-up ice rink in the heart of the CBD. Private operator Skating At want to transform half of the square’s southern end into an alpine village this winter, featuring a skating rink, ice slide, jumping castle and bar area. The Social Creative, which ran Royal Croquet Club, abandoned its planned Victoria Square winter village after it was placed in voluntary administration.”

Illawarra Hawks owner James Spenceley severs ties with club

6 February 2018

ABC News reports that “Illawarra Hawks co-owner James Spenceley has sold his share of the foundation NBL club to co-owner Simon Stratford, who has assured supporters the Illawarra is not facing yet another battle to save its club.”


Manufacturing

Car manufacturing startup Tomcar Australia collapses into administration

7 February 2018

SmartCompany reports that “car manufacturing startup Tomcar Australia has entered voluntary administration, citing high manufacturing costs and concerns with investors as the reasons for shutting its doors. Launched in 2005, the company was founded by brothers David and Michael Brim, who spent seven years in development before releasing their first product in 2012. The company made 100 of its premium off road, all-terrain cars in its first run, which sold out almost immediately after first launch.”

Custom Bus sacks 122 Sydney staff after going into administration

2 February 2018

ABC News reports that “a New South Wales bus manufacturer looks set to close after laying off more than 120 staff this week, with their union laying blame on the State Government's decision to buy vehicles overseas. Custom Bus entered voluntary administration two weeks ago and the Australian Manufacturing Workers Union (AMWU) said 122 staff had been laid off.”


North America

Mining and Energy

Cruz urges biofuels policy revamp at rally for bankrupt U.S. refiner

22 February 2018

Yahoo 7 News reports that “Republican Senator Ted Cruz of Texas on Wednesday urged President Donald Trump's administration to push for an overhaul of the nation's biofuels policy, during a rally at a Pennsylvania oil refinery that blames its bankruptcy on the controversial regulation.”


Government

Manafort's LA bankruptcy fight may offer new avenue for Mueller probe

27 February 2018

Yahoo 7 News reports that “Federal prosecutors who have already indicted President Donald Trump’s former campaign chairman Paul Manafort on charges of money laundering, bank fraud and covertly lobbying for pro-Russian interests may have additional leverage arising from a loan he received while engaged in the bankruptcies of properties in California, several former law enforcement officials say.”

Struggling companies the big losers with new US tax laws

6 February 2018

The Australian reports that “the new tax law is a boon to most US businesses, but it will make life harder for one type of company: those struggling financially or at risk of bankruptcy. Federal politicians killed a key tax benefit that troubled companies have long relied on to raise cash in a pinch. Coupled with a limit on interest deductions, which makes borrowing costlier, the changes will leave strapped firms with fewer options, according to bankruptcy lawyers and advisers.”


Retail

Toys are not us: Target investors

23 February 2018

Yahoo 7 News reports that “Target Corp should hold off on plans to cash in on a perceived advantage in toys after the collapse of Toys "R" Us, several of the company's investors told Reuters, worried it could eat up capital desperately needed in an Amazon-dominated retail world. When the biggest toy retailer in the U.S. went bankrupt last September, analysts parsing through the wreckage came to the conclusion that Target would be among the biggest beneficiaries.”


Legal

US proposes overhaul of ‘too big to fail’ regime

22 February 2018

The Australian Financial Review reports that “the Trump administration is proposing to recast a central pillar of post-crisis financial regulation with a new "Chapter 14" bankruptcy process designed to eliminate the risk that taxpayers will have to pick up the cost of a bank failure.”

Judge tosses GM settlement on ignition switch

18 January 2018

Yahoo 7 News reports that “a federal bankruptcy judge on Thursday said a settlement agreement that would require General Motors Co to pay $1 billion in stock to car owners suing the company over faulty ignition switches was not enforceable. Judge Martin Glenn of the U.S. Bankruptcy Court in New York said the agreement that car owners had reached with a trust that holds many GM liabilities from before its 2009 bankruptcy was not valid without signatures.”


Manufacturing

Judge approves Takata's U.S. bankruptcy plan

18 February 2018

Yahoo 7 News reports that “Takata Corp's U.S. unit received court approval for its bankruptcy exit plan, a plaintiffs' law firm said on Saturday, clearing the way for a $1.6 billion sale of Takata assets and providing compensation for those injured by the company's deadly air bags.”

U.S. gunmaker Remington seeks financing to file for bankruptcy: sources

9 February 2018

Yahoo 7 News reports that “Remington Outdoor Company Inc, one of the largest U.S. makers of firearms, has reached out to banks and credit investment funds in search of financing that will allow it to file for bankruptcy, people familiar with the matter said on Thursday.”


Investment

ABLV owners to liquidate bank to protect assets and clients

27 February 2018

Yahoo 7 News reports that “the owners of Latvia's ABLV Bank, accused by U.S. authorities of large-scale money laundering, have decided to liquidate the lender after the European Central Bank said on Saturday it would be wound up, ABLV told Reuters on Monday.”


Entertainment

50 Cent reportedly told the bankruptcy court that he never owned bitcoin, contrary to a report that he made $8 million in crypto

27 February 2018

Business Insider Australia reports that “Rapper 50 Cent did not make around $US8 million in bitcoin, contrary to a January TMZ report and his apparent confirmation of the report by boasting of its headline on social media. The rapper, whose real name is Curtis Jackson, reportedly admitted in his bankruptcy case that media reports “falsely stated” that he owned millions in cryptocurrency, and that he has “never owned, and does not own, a bitcoin account or any bitcoins, and to the best of his knowledge, none of his companies had a bitcoin account from 2014 to the present.””

Weinstein Company set to file for bankruptcy after sale talks collapse, reports say

26 February 2018

ABC News reports that “the Weinstein Company's board of directors says the New York film and TV studio plans to file for bankruptcy after talks to sell it collapsed, several media outlets have reported.”

BK Racing files for Chapter 11 bankruptcy, may still compete in Daytona 500

17 February 2018

ESPN reports that “BK Racing has filed for Chapter 11 bankruptcy, which likely would allow the team to compete in the Daytona 500 this weekend and potentially operate while coming up with a plan to pay debtors. The filing Thursday came less than an hour before a hearing on a request from Union Bank & Trust to appoint a receiver to take over BK Racing assets, which include a charter, NASCAR's version of a franchise that guarantees a spot in every race. The bankruptcy filing halts all other court proceedings.”


Europe

Entertainment

AC Milan owner Li dismisses bankrupt reports as 'fake news'

 21 February 2018

Yahoo 7 News reports that “AC Milan owner Li Yonghong has dismissed reports that he has been declared bankrupt in China as "fake news". Chinese businessman Li -- who purchased the Italian club for 740 million euros ($911 million) in April 2017 -- was responding to reports that he has been ordered to auction off his assets to repay unpaid loans to two banks”.


Middle East

Legal

In boost to reform, Saudi Arabia's cabinet approves bankruptcy law

19 February 2018

Yahoo 7 News reports that “Saudi Arabia's cabinet has approved a bankruptcy law, sources familiar with the matter said on Sunday, giving a boost to efforts to make the kingdom more enticing to investors. Modern bankruptcy legislation does not currently exist in Saudi Arabia, creating difficulties for struggling companies seeking to restructure debt with creditors since the 2009 global financial crisis and, more recently, the dip in oil prices.”

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