Monday 29 April 2013

Bankruptcy's boom burbs

THE inspector general in bankruptcy released the Insolvency Trustee Service of Australia's (ITSA) latest postcode-focused analysis of personal insolvency today and as far as NSW goes, the news is not good for Blacktown.

The western Sydney suburb - along with neighbouring suburbs within the 2770 postcode - recorded a 6.1 per cent increase in bankruptcies among its residents in the 2011 – 2012 period.

This represented an increase of 10 - from 163 bankrupts the previous year - to 173. (See the data for NSW here)

No postcode can boast more bankrupts. In per capita terms it means one in 349 of those residing within the 2770 postcode has experienced their own personal financial crisis.

Wednesday 24 April 2013

Pleash and Albarran dodge Suncoast bullet

Blair Pleash
Photo: Hall Chadwick
Blair Pleash and Richard Albarran have avoided censure after a Federal Court judge ruled they had acted honestly when selling four cars and a property they weren't entitled to.

In his April 18 judgement, Federal Court justice John Reeves said that while the Hall Chadwick partners had breached Corporations and Trust law statutes in the disposal of assets of Suncoast Restoration Pty Ltd, they had done so unknowingly.

Not only that, the judge lay the blame for the mistake with the insolvency operator's former solicitors and lauded the unwittingly erring pair for moving swiftly to rectify the situation as soon as they learned there was a problem. Read the judgement here.

Pleash and Albarran were appointed joint administrators of Suncoast Resoration Pty Ltd in February, 2012. At that time Suncoast Restoration was sole trustee of a superannuation fund called the Allen's Asphalt Staff Superannuation Fund.

Unbeknownst to them, the appointment of administrators or the passing of a resolution to wind the company up in liquidation automatically disqualified Suncoast Restoration from its role as sole trustee of the super fund under a clause contained in the fund's trust deed.

Monday 8 April 2013

EXCLUSIVE: Criminal charges "on the cards" for Sydney liquidator

A Sydney-based liquidator is in strife after being accused of pilfering $90,000 to pay his tax.

The official liquidator, whose identity is subject to a non-publication order, recently failed in his application to stay a hearing before the Companies Auditors and Liquidators Disciplinary Board (CALDB) that could see him stripped of his liquidators registration.

In a Supreme Court of NSW judgement published last week, Justice Stephen Rothman outlined how the accused, while working for Pitt Street insolvency firm Jamieson Louttit & Associates (JL&A), allegedly caused two payments from an account at JL&A to be made to himself to "discharge a tax liability".

The transactions allegedly occurred whilst the accused was working on Biseja Pty Ltd, a property developer to which Jamieson Louttit had been appointed receiver on September 4, 2008.

According to the judgement, the accused claims the payments were authorised by Louttit as part of an agreement the two had.

Thursday 4 April 2013

Burke passes Coshott baton to Prentice

BPS Recovery partner
Max Prentice. 
IT was an unusual little meeting at the offices of the Official Trustee in Bankruptcy last month.

There were two private trustees present. A third and fourth attended by proxy. And each was vying to take on the trusteeship of the bankrupt estate of Robert Gilbert Coshott.

Coshott is a former solicitor who was struck off the roll in 1997. He was bankrupted in 2008 on a creditors petition filed by Shipton Lodge Cobbity following a dispute over agistment fees.

Before the meeting on March 21 this year the Official Trustee administered the estate, having taken over from former trustee, John Burke on February 25, 2013.

Burke's resignation was approved after he told the Federal Court personal reasons had compounded the difficulty of managing “a very complex bankruptcy administration”.