Appointed Voluntary Administrators of an established designer furniture brand during COVID-19, involving unique and complex challenges.

This project required negotiations with landlords, logistical challenges regarding international freight, negotiations with major secured creditors and a review of other operational parameters to formulate a suitable sale and restructure.

The business was successfully restructured and sold pursuant to a Deed of Company Arrangement received by the Director and approved by creditors. This outcome delivered:

• Contributions of $600k.

• Preserved the ongoing operations of the Company’s business.

• Ensured that all pre-appointment customer orders were completed, preventing any related debts from crystallising and minimising unsecured creditor claims.

• Ensured the future employment of several of the Company’s employees and transferred their outstanding entitlements.

• Provided for payment in full of outstanding superannuation contributions.

• Provided a dividend to unsecured creditors of the Company.

The scope of my appointment included investigating the Debtor’s examinable affairs and recovering assets for the benefit of creditors of the Bankrupt Estate. The Debtor’s examinable affairs were convoluted, and investigations into such affairs were impeded in the absence of documents evidencing transactions that the Debtor had entered.

The predominant transaction involving the Debtor was the dissipation of his interest in land (subject to a Development) to various investors under the guise of Declarations of Trust.

Pre-bankruptcy funds received by investors in relation to the Debtor’s share in the Development totalled c$4m. Post-bankruptcy funds from the Development are estimated to total c$2.3m.

Books and records were either not available or not forthcoming. The Debtor and his legal representative were generally non-compliant. This made recovery of pre-bankruptcy transactions challenging and jeopardised the recovery of post-bankruptcy funds.

The prospects of recovering post-bankruptcy funds of c$ 2.3 m highly depended on setting aside the Declarations of Trust. I proceeded to bring a Court application against the investors, which involved filing a detailed affidavit, considering crossclaims and defences, and making the discovery of documents over a period of c12 months.

The Court application led to mediations held between the investors and I and was the catalyst for a substantial recovery for the Estate (expected to exceed $1.8m), which will result in a significant dividend to unsecured creditors of the Estate.

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Daniel performed an operational and financial diagnostic review of a transport business (debt of c$12m), successfully collaborated with various stakeholders, and implemented an informal debt restructure, averting a financial crisis.

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On behalf of a major financier, Daniel assisted a large, financially distressed dairy with operations across three states, significant creditor arrears (secured debt of c$11m), and a material funding request. Daniel completed an operational balance sheet and cash flow assessment to help the financier determine the best course of action to manage ongoing risks and monitor the group’s divestment strategy.

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As a voluntary administrator, Daniel successfully stabilised and traded six dairy farms (secured debt of $18m) and successfully achieved a sale of all business and assets, including residential properties and plant and equipment, maximising returns for creditors.

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The voluntary administrator of a 21-store apparel retailer operating under a license arrangement with a global car manufacturer. Daniel managed a stock rationalisation program and negotiated a royalty moratorium to ensure employees were paid in full and significantly enhanced value for secured creditors.

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The voluntary administrator of an iconic men’s apparel chain of 45 retail stores and 300 staff, with a turnover of $30m. Daniel helped achieve a deed of company arrangement restructure and a successful sale of the business and assets, preserving jobs and enhancing value for creditors.

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