Bytecan can't - telco servicer installs VA

ESTABLISHED telco services outfit Bytecan has appointed Steve Nicols of Nicols + Brien as voluntary administrator (VA) of the company, putting the immediate future of around 120 staff potentially in doubt.

SiN has learned that the company was until recently quite profitable and that a number of clients and other players in the telco and communications services space are examining various assets. Majority owned by interests associated with Wayne and Lea Kitchener of Como in Sydney's south, Bytecan was established in 1990. A first meeting of creditors is to be held in Sydney on Friday, February 6, 2015.   

Boasting revenue of about $20 million per annum, Bytecan apparently owes around $1.6 million to the Australian Tax Office (ATO). The company provides maintenance, testing and other technical communications services and expertise to telcos and has worked with all the majors. Another victim of the NBN perhaps?

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Liquidation's outcome 'profoundly disturbing" says On Q Group judge

Matthew Gess
Photo: Worrells 

LIQUIDATORS' remuneration and deeds of company arrangement (DoCAs) are again in the spotlight following the publication of a judgement relating to the failed ASX-listed IT outfit, On Q Group Limited (In Liquidation)(Subject to Deed of Company Arrangement)

The judgement - handed down last Friday by NSW Supreme Court Justice Paul Brereton - ruled on the application of Danny Vrkic, a Wollongong-based insolvency practitioner seeking to terminate the winding up of On Q Group so as to facilitate the effectuation of a DoCA. 

Paul Burness
Photo: Worrells.

But while outlining his reasons for ultimately granting Vrkic's application, the judge expressed multiple reservations about how On Q Group's insolvency has played out.

One concern related to the remuneration of On Q Group's liquidators, Worrells' Matthew Jess and Paul Burness, who were appointed liquidators via a creditors voluntary winding up on December 23, 2008. Justice Brereton questioned the liquidation's purpose.

"Thus the practical effect of the liquidation has been to

recover in excess of $725,000 of assets and transfer it to the liquidators, their agents and advisers, with no benefit at all to those for whose benefit the liquidation is supposed to be conducted. I find this profoundly disturbing," he said.

Prior to the judgement Jess and Burness presented evidence to justify their remuneration, with Jess filing an affidavit on October 1 2014 which laid out the complexities of the liquidation and the work done. The judge however seemed unconvinced.

"But even assuming that every dollar of remuneration can be supported on the basis of time spent at their usual rates, it is difficult to see how it can be justified having regard to considerations of proportionality," he said, referring to his recent decision in the matter of AAA Financial Intelligence Ltd (in liquidation) ACN 093 616 445 (No 2) [2014] NSWSC 1270 (17 September 2014).

In a statement provided to SiN, Worrells shed more light on the background to On Q Group's complicated clean up.

"Prior to us accepting this appointment, we are aware that at least one other major insolvency firm had refused to consent to act due to the significant risk and uncertainty associated with the appointment," the firm said. 

"The Voluntary Administration and subsequent Liquidation of the Company was burdened with a number of complexities, including several separate legal proceedings, and significant costs that we were required to personally fund (at our expense and risk) as there were no recoveries until more than 12 months following our appointment.

"Worrells supports proper scrutiny of liquidators remuneration and we welcome open discussions on insolvency matters."

Justice Brereton's judgement, following hard on the heels of the AAA Financial decision, also drew a quick response from the Australian Restructuring, Insolvency & Turnaround Association (ARITA). 

Colefax's curious Haberfield refurb

Did the advertised refurbishment become a removal?
Photo: SiN Images 

The Colefax Lounge & Cafe on Ramsay Road Haberfield is yet to reopen after initially advising patrons it was undergoing a temporary refurbishment.

The premises at 78 Ramsay Road shut around the beginning of September.

As the accompanying images show, paper-sheeting screening the interior has fallen away in recent days, allowing curious passersby to see that the aforementioned refurb must involve at least temporary removal of all furniture, shop counters or in fact almost any object that could be classified as “removable”.

Liquidator has no taste for Colefax on Ramsay road

The Ramsay Street outlet in March 2012.
Photo: SiN Images

STEVE Nicols of Nicols + Brien might have been appointed liquidator of Colefax Chocolates Pty Ltd in late 2011 but the chocolate emporium's retail outlet on Ramsay Street Haberfield has traded on seemingly unaffected.

Colefax's owners Peter and Lisa Lee declined to comment when Nicols was appointed. Nicols was equally shy when contacted.

However an anonymous emailer later advised SiN that the “liquidated company has nothing to do with the retail operations of Colefax Chocolates located at 78 Ramsay Street Haberfield”.