Coshott win could be curtains for Prentice

BPS Recovery partner
and bankruptcy trustee
Max Prentice.

MAX Prentice's grip on the bankrupt estate of Robert Gilbert Coshott may have loosened a tad this week after Federal Court judge Jayne Jagot on Tuesday overturned the decision of her Circuit Court counterpart Rolf Driver on appeal from the bankrupt's brother.

In May Judge Driver ruled on an application by Ronald Michael Coshott and Fewin Pty Ltd seeking confirmation of their status as creditors in the bankrupt's estate and an order compelling Prentice to call a meeting of creditors. In rejecting the application Judge Driver expressed doubts about aspects of the applicants' claim.

"I have a general difficulty with the asserted assignments of debt from Fewin to Mr RM Coshott," Judge Driver said in his judgment of May 29, 2015.

".... there is no reliable evidence of any consideration for those assignments. The evidence advanced by the applicants consists of the minutes of a meeting of Fewin held on 23 August 2013 where it was resolved that $359,487.08 payable by Mr RM Coshott under the deed of assignment of debts from Fewin to Mr RM Coshott be paid by way of repayment by Fewin of moneys allegedly owed by Fewin to Mr RM Coshott, and that the company’s accounting records be adjusted to reflect this. The minutes are signed by Mr RM Coshott," Judge Driver said.

"There is, however, no other evidence of the asserted debt owed by Fewin to Mr RM Coshott . He was called upon to produce the books and records of Fewin for the purposes of these proceedings but nothing material was produced. I infer that such records of the company as may exist would not have assisted him," Judge Driver added.