EXCLUSIVE: Wily relinquishes bankruptcy ticket

Andrew Wily, happier without the stress
of working on profitless bankruptcies at the behest
of AFSA. Photo: Andrew Wily  

ARMSTRONG Wily principal Andrew Wily has confirmed he has surrendered his registration as a trustee in bankruptcy, blaming onerous regulation and meagre profits.

"It's been brewing for a while," Wily told SiN when asked when he decided to give up his ticket. "It's a process that will go on for months of winding down, that's all," he said.

The Australian Financial Security Authority (AFSA), which regulates personal insolvency, refused to comment when contacted. Wily's name and contact details were still present on the AFSA website's lists of registered bankruptcy trustees at time of writing, despite Wily confirming he could no longer accept appointments.

"The story with bankruptcy these days is that it's very regulated and the regulator wants everybody to do a lot of work in matters that have no money in them," Wily told SiN. "They're saying 'we don't really care if there's any money in the job or not. You have to do a whole heap of work'.

"So that means you have to employ a lot of staff, and do a whole lot of work and there's no assets in them. It's a commercial decision as to how much work you do. I think I had over 300 files at one stage," he said.

Wily denied that AFSA had pressured him to relinquish his ticket in the wake of an application late last year in the Federal Court by the liquidators of Timbercorp Finance.

In November 2014 Mark Korda and Leanne Chesser of Korda Mentha sought an inquiry into Wily's conduct and his removal as trustee of the bankrupt estate of  Melbourne-based financial advisor Peter Raymond Holt, who was banned from providing financial services for three years in September 2012 in relation to Timbercorp investments made by his clients. 

Wily said the application caught him by surprise because he had earlier approached the liquidators, seeking funding to carry out further investigations. He said he also provided lawyers for the liquidators with full access to his case files.

"No, there were no issues on that one but there's no doubt that AFSA's looking at all trustees at the moment," he said. "They're saying, 'guys you've got to keep the high levels of work up and if you don't you've got to start thinking about exiting the industry'," Wily said.

When asked if AFSA had tapped him on the shoulder in relation to an appointment other than Timbercorp Wily was equivocal, saying only that he had an enormous amount of work in progress built up over the years. That work will pass to the Official Receiver who will then allocate it to eligible private trustees.

Wily meantime will focus on corporate insolvency work, when he's not fishing and ridding properties of feral pests.

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Olde trumps Wily despite $25k cap

Andrew Wily
Photo: SiN Images

TAYLOR Wooding’s Quentin Olde has edged out Andrew Wily to be appointed liquidator of Alatus Pty Ltd.

Alatus's director and co-shareholder Edward Mandla had applied to have the company wound up. His liquidator of choice was Olde.

But Stepan Stepanian, who holds the other half share in the company, and is listed as second defendant after Alatus, had other ideas.

Damelian declares bankruptcy - Wily gets the gig.

INSOLVENT auto boss Rick Damelian has declared himself bankrupt, heading off a creditors petition hearing scheduled for next week.

SiN learnt today that the Australian Armenian from Uruguay took matters into his own hands on November 9, appointing Armstrong Wily's Andrew Wily as his trustee in bankruptcy.

Wily told SiN that secured lender NAB would now move to take possession of Damelian's multimillion dollar home at McMahons Point.

Damelian had been scheduled to face a creditors petition hearing next Tuesday brought by Steve Sherman and Jim Sarantinos.

The Ferrier Hodgson duo are receivers appointed to Damelian Automobile Pty Limited.

In August the NSW Supreme Court ordered Damelian to pay almost $1.9 million in outstanding loans to Damelian Automobile, which had been the main trading entity of his once sprawling auto empire.

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This lady’s veto is not for overturning

The property of bankrupt businessman Tony Morris,
which Andrew Wily can't sell without the consent
of Vanessa Morris.

SHE might be a “single mother on a pension” but she can still marshal top QCs and barristers in defense of her realm.

The lady in question is Vanessa Morris (Jackson), who this week saw off a challenge in the Federal Magistrates Court from Armstrong Wily's Andrew Wily.

If Wily's application had been successful, the Palm Beach mansion Mrs Morris occupies would have been sold without her having any say in the transaction.

Strathfield in administration - again

Strathfield Group
chairman Vaz Hovanessian.
Photo: SiN Images.

AFTER two weeks of desperate negotiations, Strathfield Group chairman Vaz Hovanessian has appointed Andrew Wily and Paul Fury from Armstrong Wily as external administrators to the crippled telco. Creditors will see a reconstruction proposal next month.

Hovanessian told SiN yesterday he’d spent much of the past fortnight persuading Optus, the company’s main supplier, to continue trading with the beleaguered group.

“If we go into liquidation Optus is going to pull the plug and the only asset we have is the Optus contract,” Hovanessian said.

“The only way is to stay in business, carry on to preserve the contract and you can see why there was frantic negotiations with Optus,” he said, adding the telco was still paying commissions to Strathfield as per the contract.