Bankruptcy professionals convening for congress

Bankruptcy professionals in between sessions at a previous Congress
Image courtesy: Traill & Associates  

IT'S that time of year that bankruptcy trustees and those who work with them convene for Traill & Associates' annual National Practical Bankruptcy Congress, Workshops (and cocktail party).

Organised by Rosie Traill, whose sister Kate was recently appointed to the bench as a Judge of the District Court, the two day get together of body snatchers focuses on practical issues facing trustees and their staff and advisors, bringing together some of the best and most experienced operators for a series of practical workshops and interactive, informal talks.

Speakers include O'Neill Partners' consulting solicitor Sally Nash, Ferrier Hodgson's John Melluish, Norton Rose partner David Goldman, and barrister Sandrah Foda. The focus is on practical solutions to key issues.

For example, the challenges of complying with the various state and ARITA codes of independence will be examined through a review by Melluish and Goldman of the recent Federal Court decision of BC39 Pty Ltd v Rambaldi in the matter of Wharington (Bankrupt) [2014] FCA 1076 (7 October 2014), where an examination summons triggered an intensive examination of the trustees's independence and the DIRRI regime.

There'll also be a Family Law panel discussion and interactive discussions relating to fees and remuneration; after acquired property; voidable transactions; dealing with creditors, bankrupts and sheriffs. 

Barrister Brian Skinner will also host a discussion around the issues a trustee should consider in determining whether a possession-related matter is best pursued through the Supreme or Federal Court. For the full program see: 3rd Annual Bankruptcy Congress

The Congress kicks off on Wednesday, October 28 with a day-long program that concludes with a cocktail party at the ArtHouse Hotel, across the road from the congress venue at the Wesley Centre on Pitt Street. Enquiries should be directed to Congress organiser Rosie Traill at: rtraill@traillassociates.com.au

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Hawaii - attend a conference, obtain a tan

Honolulu, Hawaii could be the location for a new kind of insolvency conference in 2016.

IT's early days but Sydney lawyer Paul Fordyce is planning to launch a restructured insolvency conference format that he thinks could blow rival events out of the water.  The fact that he intends staging his conference in Hawaii won't detract from its allure. 

Over a coffee this week Fordyce explained how the three day event would canvass topics in a way radically different to the usual approach which is to run days full of lengthy presentations which he says force speakers to pad out their speeches with unnecessary material.

Under the Fordyce format speakers will address key topics as if they were presenting a TED Talk. Instead of one speaker having to fill an hour on cross-border insolvency law for example, three would be allocated 20 minutes.

The PMF Legal principal said he's negotiating with an eclectic range of potential keynote speakers including Czech economist Tomas Sedlacek who authored the Economics of Good and Evil, Robert J Faris, the Hawaiian District Bankruptcy Judge and Charles Booth, Professor of Law at the University of Hawaii and an expert in Asia Pacific insolvency law.

Team Tinkler cops new orders to produce

Nathan Tinkler leaving the NSW Supreme Court.
Photo: SiN Images

NATHAN Tinkler and his inner circle of advisers have been ordered to leave no hard drive unexamined in pursuit of any reference to plans by Tinkler's Mulsanne Resources to buy into emergent Queensland coal play, Blackwood Corporation.

The orders were made late on Friday, March 15 by Supreme Court judge Paul Brereton. 

The judge spent two days listening to Tinkler and his cohorts being grilled by lawyers acting for Robyn Duggan and John Melluish of Ferrier Hodgson, who are joint liquidators of Mulsanne Resources.

SiN Feature: Tinkler's liquidators get personal

THE spectre of bankruptcy looms over Nathan Tinkler after lawyers probing the failure of the coal baron’s Mulsanne Resources switched the focus to his personal finances and the family trust controlled by his wife.

Robert Newlinds SC, conducting a public examination on behalf of Mulsane’s liquidators, told the court last Friday that Tinkler declared taxable income for the financial year to June 30, 2011 of $9,834.00.

Tinkler confirmed that apart from $250,000 in various joint bank accounts, he relied on his wife for handouts.

“I’m very lucky, yes,” he said with a straight face.

For the previous day and a half Nathan Leslie Tinkler had been quizzed on the events leading up to Mulsanne’s default on a $28.4 million obligation to coal explorer Blackwood Corporation.

Tinkler signed a Share Placement Agreement (SPA) on May 6, 2012, committing Mulsanne to purchasing a third stake in Blackwood, which is 51 per cent owned by global commodities house Noble Group.

He formally defaulted on his obligation to pay the agreed $28.4 million on July 19, 2012. The liquidators’ examinations come six months after Blackwood ran out of patience and applied to have Mulsanne wound up.

Ferrier Hodgson’s Robyn Duggan and John Melluish were appointed joint liquidators on November 20, 2012. They have been investigating Mulsanne’s affairs and the events leading up to and since its default.

The sudden shift in questioning last Friday brought Tinkler’s lawyer, Alec Leopold SC indignantly to his feet. What did Tinkler’s taxable income have to do with Mulsanne, he objected?

Tinkler's notebooks telling no tales - yet

Nathan Tinkler
Photo: SiN Images

LIQUIDATORS Robyn Duggan and John Melluish are playing a long game with slimmed down coal upstart Nathan Tinkler.

The public examinations into the failure of Tinkler's Mulsanne Resources are intended to help the Ferrier Hodgson duo determine if an action for breach of director’s duties is an option.

Whether this will ultimately lead to any recoveries for Blackwood Corporation, the creditor that sought Mulsanne’s winding up and is funding the examinations, is anyone’s guess. But they obviously think the fishing expedition worthwhile.

Bentleys' Barnet examined on viable voidables

Bentleys Katherine Barnet leaving the Supreme Court
Photo: SiN Images

Being cross-examined can’t be fun for any liquidator and Katherine Barnet won't feel like the one who dodged the bullet after fronting the NSW Supreme Court yesterday. 

The insolvency specialist and director at Bentleys Corporate Recovery was brought in to talk about failed property investment group Octaviar.

She began by getting confused about which of the two witness boxes to occupy.

Perhaps the courtroom atmosphere was distracting. It smelt like the aftermath of a prolonged inundation.

Then, having been sworn in and seated, Barnet faced six senior counsel - including Bernie Coles QC.

Along with her Bentleys’ colleague William Fletcher, Barnet is official liquidator of Octaviar Administration Pty Ltd and Octaviar Limited.

Donnelly halves Slater & Gordon's Keddies claim

FERRIER Hodgson’s Max Donnelly has admitted barely half of a near $1 million proof of debt filed by law firm Slater & Gordon (S&G) against the bankrupt estate of struck-off solicitor Russell Keddie.

Donnelly, who was appointed trustee in bankruptcy to Keddie’s estate on June 15, is aiming to pay an interim dividend before Christmas. 

But the claims Donnelly is prepared to accept for interim distribution purposes and the amount the high profile lawyers are claiming is far from aligned. 

“As each day goes on, they (S&G) get a new claim and they are claiming under the indemnity, Donnelly explained.

“They said: ‘we know we might get sued on 20 cases but it might be a million’.

“I’ve said: ‘I’m only going to admit you for what you’ve actually paid out. I don’t care what you might get claimed’.

Keddie queries Donnelly's determinations

 Bankruptcy veteran Max Donnelly
Photo: Ferrier Hodgson 

STRUCK-off solicitor Russell Keddie applied for a review of $1.26 million in creditor interest claims just days before his bankruptcy trustee sought authorisation to pay a pre-Christmas dividend.

In a letter to Max Donnelly, Keddie advises his trustee that he’s filed an application in the Federal Magistrates Court to preserve the 21-day time limit a bankrupt has to challenge trustee determinations of proofs of debt.

The letter – dated November 30 - is signed by Keddie’s lawyer Sally Nash. Accompanying it is a copy of the application and a supporting affidavit dated November 27.

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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Receivers move to bankrupt Rick Damelian

A tasty trustee appointment is in the offing after Ferrier Hodgson moved to bankrupt former luxury car czar Rick Damelian.

Lawyers for Ferrier’s Steve Sherman and Jim Sarantinos - the receivers of Damelian Automobile Pty Limited - filed a creditor’s petition in the Federal Magistrates Court on October 26. 

This came after the flamboyant auto dealer failed to comply with a bankruptcy notice ordering him to pay $1.876 million.

The bankruptcy notice was the natural consequence of a Supreme Court judgement handed down in August in which Justice David Hammerschlag was moved to observe that Damelian “was an entirely unsatisfactory witness who gave untruthful evidence.”

The bankruptcy notice was served on Damelian on September 20. His failure to comply or file any sort of cross or counter claim by October 12 triggered the filing of the creditors petition, which will be heard on November 20. 

The receiver’s case is being run by Allen’s insolvency guru John Warde. At time of writing no trustee consent to act declaration had been filed.  

Max acts for tax man in battle over settlement funds

A $1.95 million settlement between the former occupants
of this Manly property is in Max Donnelly's sights.
Photo: SiN Images  

FOR what is probably not the first time in his career, Max Donnelly has been ordered to produce his particulars.

Particulars about what bankrupt tax lawyer David Neill Bonnell knew.

Particulars about when Bonnell knew what he's alleged to have known.

And particulars about how Donnelly knows that when Bonnell transferred $5 million from his non-compliant super fund to Windoval, a company he controlled, it was done intentionally to foil the taxman.

The Windoval payment was made on July 1, 1999. Accrued interest might turn out to be quite a sum.

Allco receivers contemplating tilt at Fell

GORDON Fell must be thinking hard about the six days he spent being quizzed by ASIC investigators after the fall of Allco.

The voluminous saga of Mr Donnelly's fees

The view from Surf Circle Road, Tura Beach.

FERRIER Hodgson’s veteran bankruptcy trustee Max Donnelly today instructed his solicitors to execute a writ of possession over the Tura Beach residence of Eugene and Inge Maxwell-Smith, a move that will potentially bring an end to a marathon seven-year battle over unpaid fees.

Max was appointed trustee in bankruptcy to the Maxwell-Smith estate in 2003 after the Jindabyne couple spent years refusing to pay a builder for what they believed were sub-standard renovations to their beachfront retirement bolt hole on Tura Beach's prestigious Surf Circle road.