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.

BPS Recovery bests regatta rivals

Max Prentice being relieved of his trophy
Photo: SiN Images

FATHER and son team Max and Matt Prentice took the honours last Friday when seafaring numerati assembled for the Institute of Chartered Accountant's regatta.

Max's Ticket of Leave led the way for BPS Recovery, crossing the line first ahead of Eagle Rock, owned by O'Brien Palmer's Bryan Collis and Tonic, carrying BPS partner, Dave Sampson.

The shortened course gave race participants time to rehydrate on board before the official rehydration at the Cruising Yacht Club's bar, an event interrupted briefly by the presentation ceremony.

This was the third time Max has won the trophy, which SiN was assured is much coveted by liquidators. 

For SiN the event was about tapping into what's occupying the minds of accounting's insolvency operators. 

Apparently further regulatory examination, focussing on individual practitioners, is anticipated and as the rum flowed, those likely to be subjects of the inquisitors' inquiries were speculated upon.

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Alcott's consultancy wound up

Errol Alcott.
Photo: Fairfax Media

THE physiotherapist who soothed the sprains of the Australian cricket team for 22 years before moving on to treat Russell Crowe's Rabbitohs is getting deep heat of his own over more than $200,000 in unpaid tax.

Court documents show the Federal Court appointed RMG Partners' Murray Godfrey as liquidator to Errol Alcott Professional Services Pty Ltd on October 19, 2012.

The order followed an application by the ATO in August last year seeking to have the company wound up. The taxman made the application after a statutory demand for $210,447.82c – issued on May 10, 2012 – went unpaid.

Errol Alcott is listed as sole director and shareholder of the company.

The debt comprises amounts for outstanding BAS and income tax stretching back as far as 2008, as well as penalties for failing to lodge income tax returns and accrued interest.

Speaking outside his Caringbah home on Friday, Mr Alcott told SiN the wind-up matter related to personal issues.

Keddie creditors shedding trustees

Casa Barakat, Roseville Chase
Photo: SiN Images

CREDITORS of the former partners of legal firm Keddies want to slash the number of bankruptcy trustees in a bid to reduce fees - and who can blame a former Keddies client for being a little testy on that topic?

The first step towards paring the four trustees back to one will be taken on December 19 when former partner Tony Barakat submits a proposal for a composition.

The composition - under section 73 of the Bankruptcy Act - comprises an offer by Barakat of $2 million.

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.

EXCLUSIVE: Ayliffe fends off bankruptcy bid with revised proposal

IT'S the insolvency equivalent of a miracle ball - a debt agreement lobbed onto the chest of a creditor after the first pass went to grass - and Roosters legend Royce Ayliffe might just have thrown it.

The NRL judiciary stalwart is due to front at a creditors petition hearing in the Federal Magistrates Court on December 19. 

The petition was filed by ACM Group on November 12 after the Vieira family's debt collection agency rejected Ayliffe's original Part IX debt agreement proposal to satisfy $40,000 in credit card repayment obligations. 

That first proposal was popped up by Ayliffe in September. See:  NRL's Ayliffe facing debt dilemma

But the former league star may have fended off the December 19 hearing - which could see him bankrupted - by lobbing to ACM a revised, and possibly acceptable offer just this week.

SiN's mail is that Moore Stephen's Trent Hancock has been approached to act as trustee to Ayliffe's Part IX version two. 

At time of writing the arrangement had not been formalised. Nor had a second Part IX appeared on the register of the official receiver.

SiN understands the 56 year old Ayliffe has been repaying the debt in installments since creditors won judgment in the Downing Centre Local Court on June 16, 2010.

Ayliffe did not reply to emailed requests for comment and would not take SiN's calls.

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