Services Business Insolvency

Business Insolvency

At BRI Ferrier, we have wide-ranging expertise with businesses that are, or may become, insolvent and need to be wound down in an orderly manner. This can involve all or just part of the business that has not been performing.

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HOW WE CAN HELP

Our team of over 20 registered and liquidators acts for banks, company directors, business owners, legal advisors, creditors, investors and regulators.

Our experience includes insolvency situations in industries such as property and construction, energy, mining, retail, manufacturing, logistics, primary industry, and tourism and hospitality.

We listen to all stakeholders to understand their objectives and implement a strategy that maximises their returns. In this way, we protect creditors’ interests, maximise realisations, manage claims and, where appropriate, pursue recoveries.

The three main vehicles for achieving these outcomes are receivership, creditors’ voluntary liquidation and court liquidation.

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Receivership
Creditors' voluntary liquidation
Court liquidation

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.

Past Experience:

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.

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.

Past Experience:

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.

Court liquidation

BRI Ferrier is regularly appointed by courts that determine a business is insolvent and that liquidation is required to protect the interest of creditors.

The appointment enables us to take control of the business and its affairs, allowing for an orderly winding down of operations and realisation of assets.

Various parties may initiate court action. They include creditors, shareholders, company directors and regulators.

There are two types of court liquidation – provisional liquidation and official liquidation.

Provisional liquidation

BRI Ferrier may be appointed as provisional liquidator after a creditor files an application for winding up a business and before the winding up order is made. This is an interim appointment that occurs when a creditor is concerned that a company’s assets are being transferred outside the business or are otherwise threatened. As provisional liquidator, we take control of the business and assets to preserve the status quo pending the hearing of the winding up application.

Official liquidation

A court may appoint BRI Ferrier as official liquidator, generally after a company fails to meet the demands of unsecured creditors. On appointment, we take control of a company’s business and assets. We thoroughly investigate the company’s affairs, assess all possible claims and provide timely insights into how the liquidation is likely to proceed. We then implement a strategy to realise the assets, commence liquidator claims, investigate company affairs and report to ASIC.

Past Experience:

Maya Catering
A shareholders’ dispute resulted in BRI Ferrier’s appointment as official liquidator of Maya Catering Pty Ltd. We initially decided the business should continue to trade to retain its value while a buyer was found. We negotiated with landlords and bankers to offer the freehold property and business for sale in one line. As a result, a successful sale was achieved with the petitioning creditor’s costs, the secured creditor and all outstanding employee entitlements paid in full. Ordinary unsecured creditors were also paid a dividend of 100 cents in the dollar.
Nowra Shoe Barn
On appointment as official liquidator of Nowra Shoe Barn Pty Ltd, BRI Ferrier decided the business should continue to trade while working to attract a buyer of the two stores. When no interest was forthcoming for the business’s sale as a going concern, we proceeded with a ‘sell down’ strategy. We negotiated favourable advertising rates on the local radio station and, as a result, achieved sales exceeding $220,000 over a four-week ‘closing down’ period. The strategy resulted in the petitioning creditor’s costs and all employee entitlements (including compulsory superannuation) being paid in full.
The Coffee Bean Shop
Upon BRI Ferrier’s appointment as official liquidator of The Coffee Bean Shop Pty Ltd, we decided to continue trading the business to protect its value while seeking urgent expressions of interest from potential buyers. With the support of the market management, we identified 44 interested parties. Fourteen offers were received, resulting in the business being sold as a going concern. Although the director had maintained minimal books and records, the sale resulted in all known employees receiving 100 cents in the dollar and unsecured creditors, who were owed almost $300,000, receiving a substantial return.
Andreones Lawyers
When BRI Ferrier was appointed as official liquidator of Andreones Lawyers, the Law Society had already put in place a law practice manager to manage solicitors’ trust accounts and open client files. Our role was to enable the business to trade while sourcing a purchaser. Once we found a buyer we negotiated a position whereby the law practice manager appointed the buyer as their agent. This provided clients with certainty during the period between exchange and settlement. The wind-up resulted in the payment of the petitioning creditor’s costs and all unremitted compulsory superannuation plus nominal interest. There was also a return to the secured creditor and part repayment of funds advanced by the Department of Education, Employment & Workplace Relations under the General Employees Entitlements and Redundancy Scheme.
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who we work with

Works closely with a range of business stakeholders, including financiers, solicitors, accountants & creditors, as well as the directors of businesses in financial distress.

Financiers

Empowering financiers with tailored solutions to secure their investments.

Solicitors

Partnering with solicitors to navigate complex legal landscapes with precision.

Accountants

Collaborating with accountants to ensure accurate financial management.

Creditors

Assisting creditors in recovering their dues efficiently and effectively.

Company Directors

Guiding company directors through financial distress with expert advice.