Busby Contracting Pty Ltd ACN 600 022 795 (In Liquidation .../media/Files/... · 5/4/2018 · ACN...

Busby Contracting Pty Ltd ACN 600 022 795 (In Liquidation) (‘the Company’) STATUTORY REPORT TO CREDITORS

4 MAY 2018

EXPERTS WITH IMPACT™

STATUTORY REPORT BY LIQUIDATORS Busby Contracting Pty Ltd (In Liquidation)

2 · FTI Consulting, Inc. EXPERTS WITH IMPACT™

Contents

1. Introduction .......................................................................................................................................................... 3

2. Executive Summary ............................................................................................................................................... 4

3. Progress of the Liquidation ................................................................................................................................... 5

4. Investigations and Recovery Actions..................................................................................................................... 7

5. Likelihood of a Dividend ........................................................................................................................................ 9

6. What Happens Next in the Liquidation? ............................................................................................................. 13

7. Proposals Without Meetings ............................................................................................................................... 13

8. Participating in the proposal ............................................................................................................................... 13

9. What to do next .................................................................................................................................................. 14

10. Further Information ............................................................................................................................................ 14



1. Introduction I refer to my appointment as Liquidator of the Company on 5 February 2018 and to my previous Report to Creditors dated 15 February 2018.

The purpose of this report is to:

provide you with an update on the progress of the liquidation; and

advise you of the likelihood of a dividend being paid in the liquidation.

I will also be seeking approval of my remuneration and disbursements by way of proposal without a meeting. Accordingly, this report is to be read in conjunction with the Remuneration Approval Report, Information Sheet, and Notice of Proposal to Creditors which appear as Appendices C to E.

Contact details for general enquiries regarding this liquidation are set out below:

Table 1: FTI Consulting Contact Details

Item Details

Liquidators Joanne Dunn and John Park

Point of Contact Nicholas Remmelt

Contact Phone Number: (07) 3225 4942

Contact Email: [email protected]

Street Address:

FTI Consulting

Central Plaza One

Level 20, 345 Queen Street

Brisbane QLD 4000

Postal Address:

FTI Consulting

GPO Box 3127

Brisbane QLD 4001

mailto:[email protected]



2. Executive Summary An Executive Summary of the key points, findings and recommendations of this Report are detailed below. The Executive Summary must be read in conjunction with the entire report and must not be relied on without first reading the entire report including all qualifications, limitations and comments.

Table 2: Executive Summary

Subject Matter Preliminary Findings & Recommendations Report Reference

Debtors and Retention Collection

As at the date of appointment the Company had eleven (11) debtors totaling $586,859. Demands have been issued to debtors and $94,140 has been collected to date. It is expected a further $88,000 to $160,000 should be recoverable.

Section 5

Date of Insolvency Our investigations have determined the Company may have been insolvent from as far back as 30 June 2016 and remained insolvent until the date of appointment.

Section 4.2

Related Party Loans Investigations into the affairs of the Company identified related party loans of $1,347,853. Recovery of these amounts are dependent on the financial position of each party as well as any right of set-offs.

Section 4.2.1

Preference Payments The Liquidator has identified potential preference payments to creditors during the relation back period. Further investigations are required in order to determine the collectability of the potential claims for preference payments.

Section 4.2.2

Return to Creditors Based on the Estimated Statement of Position, the Liquidators estimate a potential return to priority creditors for outstanding superannuation between 0 and 75 cents in the dollar. The Liquidators do not anticipate recovering sufficient funds to enable a dividend to unsecured creditors.

Section 5



3. Progress of the Liquidation 3.1 Background

The Company operated a civil contracting business in Central Queensland until the appointment of John Park and myself as Liquidators on 5 February 2018. We were also appointed Administrators and subsequently Liquidators of Busby Plant Hire Pty Ltd (‘Busby Plant Hire’), a related party who hired various Plant and Equipment to the Company.

Detailed below is information regarding the Company obtained from a company search from Australian Securities and Investments Commission (‘ASIC’) as at the date of our appointment.

Table 3: Company Information

Item Details

Commencement Date 10 June 2014

Registered Office Unit 2/165 Auckland Street, Gladstone QLD 4680

Trading Premises 14 Robison Street, Park Avenue QLD 4701

At the time of my appointment, Patrick Busby and Donald Stephen (‘the Directors’) were the Directors of the Company. Detailed below is information regarding all Directors of the Company, for the previous five (5) years, obtained from ASIC.

Table 4: Current and Former Directors

Name Position Commencement Date Cessation Date

Patrick Busby Director 10 June 2014 Current

Donald Stephen Director 10 June 2014 Current

Kevin Surman* Director 10 June 2014 5 December 2017

Raymond Busby Director 10 June 2014 17 October 2014

*Kevin Surman was declared Bankrupt on 22 December 2017.



The Company has issued and paid up capital as follows:

Table 5: Shareholding Information

Shareholder Number of Shares

Held Class of Share

Beneficially Held and Fully Paid Up

Capital Power Resources Pty Ltd 12 ORD Yes

The following matters have been attended to since the commencement of the winding up:

Attended to all necessary statutory lodgements and reporting, accounting and administrative matters;

Reviewed the Company’s asset position to determine whether there is any property that can be realised for

the benefit of creditors;

Conducted searches and undertook investigations into the affairs of the Company concerning possible

recoveries from voidable transactions;

Travelled to the Company’s premises to obtain and review the Company records;

Corresponded with employees regarding termination of employment and effect of liquidation;

Communicated with parties with PPSR registrations and assessed any potential claims;

Analysed internal accounting records;

Reviewed the Company debtor position and issued demands for payment;

Corresponded with debtors on defects claims and investigated claims;

Liaised with the Secured Creditor to assess the cross-guarantee;

Verified employee entitlements and liaised with the Department of Employment;

Assisted employees with claiming under the Fair Entitlement Guarantee Scheme (‘FEG’);

Attended to external enquiries concerning the status of the liquidation; and

Prepared a report to creditors.

3.2 Assets and Liabilities

I received a completed Report as to Affairs (‘RATA’) from Donald Stephen, which was lodged with ASIC on 12 February 2018.

I have previously provided a summary of the Director’s RATA in my report to creditors dated 14 February 2018. The asset and liability position at the time of issuing this report, including the estimated return to creditors in the Liquidation, is contained in Section 5 of this report.

As at the date of our appointment, the only Company assets were uncollected debtors. All plant and machinery used by the Company was owned by Busby Plant Hire through hire agreements.

3.3 Liquidators’ Trading Costs

I continued to employ two (2) employees of the Company from the date of appointment on 5 February 2018 to 28 March 2018 to assist in finalising unbilled invoices to the Company’s debtors, collating the books and records of the Company, and to assist GraysOnline with securing the assets of a related entity, Busby Plant Hire.



Employment costs incurred by the Company in relation to the protection and realisation of assets of Busby Plant Hire have been recouped by the Company from the sale proceeds of these assets. 3.4 Receipts and payments

Details of the receipts and payments of the Liquidation for the period 5 February 2018 to 2 May 2018 are included at Appendix B.

4. Investigations and Recovery Actions As Liquidator, I am required to investigate and specify whether there may be any voidable transactions in respect of which money, property or other benefits may be recoverable by a liquidator.

Set out below are details of our investigations undertaken to date and relevant findings.

4.1 Investigations undertaken

To date, we have undertaken the following investigations into the Company’s affairs:

Discussed the Company’s affairs and reasons for the Company’s failure in a meeting with the Directors and Financial Controller.

Reviewed the Company’s books and records, including the Company’s accounting file and financial accounts of the Company;

Reconstructed accounts of the Company in order to conduct investigations;

Reviewed the Company’s bank statements for any preferences or unusual and/or material transactions;

Conducted independent searches including, but not limited to, internet searches, property searches, Department of Transport, company and director searches.

4.2 Findings and possible recoveries

As a result of my investigations, I have identified the Company may have been insolvent from as early as 30 June 2016. The below voidable transactions have been identified:

4.2.1 Unreasonable Director Related Transactions and Related Party Loans

The records of the Company identified a number of loans provided to related parties which would not likely have been made by a reasonable party, having consideration to the benefit and detriment these loans had to the Company. The Liquidators are currently reviewing the collectability of these loans and will update creditors accordingly. Further information in relation to these loans can be found in Section 5, note 5.



4.2.2 Unfair Preference Payments

Investigations into preferential payments made to suppliers are ongoing. Our preliminary view is that some creditors may have received preferential treatment, however, the Liquidators are still performing additional investigations to firm up any claims. Further information in relation to these preferences can be found in Section 5, note 4.

Further, it is likely that some parties may have defences available to them under the Act which the Liquidators will consider prior to initiating any recovery proceedings.

4.2.3 Insolvent Trading Claim

Pursuant to the Act, the Directors may be personally liable for debts incurred by the Company when the Company was insolvent and remain outstanding as at the date of our appointment.

Our preliminary view is that the Company may have been insolvent from as far back as 30 June 2016 and remained insolvent up to the date of our appointment.

A Liquidator would need to be commercial in their pursuit of an insolvent trading claim and would need to consider the Directors’ personal financial position, the Directors’ ability to satisfy any claim and any potential loan owed to the Directors, which may offset the value of the claim. Creditors should also note that pursuing an insolvent trading claim is an expensive process and incurs substantial remuneration and legal expenses.

The Directors have been requested to provide details of their personal financial position to determine their ability to satisfy an insolvent trading claim, if pursued. Based on our investigations to date and the significant Company debts the Directors will be personally liable for, I do not anticipate either Director will have the financial capacity to satisfy any claim.

4.3 Further Investigations to be Undertaken

I plan to undertake the following further investigations:

Finalise my investigations in establishing the financial capacity of related entities to repay loans and other monies to the Company.

Calculate the total amount of preferential payments made to creditors and seek recovery of same.

Completion and lodgement of my investigative report to the Australian Securities and Investments Commission in accordance with Section 533 of the Corporations Act 2001 (‘the Act’).

Section 533 of the Act requires a liquidator to investigate any offences that may have been committed by the directors or persons who took part in the formation, promotion, administration management or winding up of a company and to lodge a report on their findings to ASIC. This report is in the process of being finalised.

If creditors are aware of any other matters which require further investigation please contact my office as soon as possible.



4.4 What Happened to the Business of the Company?

The Directors advised that they attribute the Company’s financial position to the following factors:

Under quoting when tendering for projects;

Significant delays in receiving payment from debtors;

Liquidation of major debtors; and

Flooding of their project sites and premises due to natural disasters.

Our investigations have revealed that the following material events were the primary cause leading to our appointment as Liquidators:

Lack of internal controls;

Downturn in the industry;

Liquidation of 2 key customers in 2015 and 2017 leading to significant write offs; and

Poor management of debtors and retentions.

5. Likelihood of a Dividend The likelihood of a dividend being paid to creditors will be affected by a number of factors including:

the size and complexity of the liquidation;

the amount of assets and voidable transactions realisable and the costs of realising these items;

the statutory priority of certain claims and costs;

the value of various classes of claims including secured, priority and unsecured creditor claims; and

the volume of enquiries by creditors and other stakeholders.

The Liquidators anticipate an estimated return to priority creditors for outstanding superannuation between 0 and 75 cents in the dollar. Due to the high level of employee claims in the Liquidation there is unlikely to be a dividend to unsecured creditors.



The estimated return is calculated and explained below:

Table 6: Current Estimated Statement of Position

Description Notes Liquidation

Optimistic Pessimistic

Assets

Cash at Bank 1 86,760 86,760

Debtors 2 160,000 88,000

Retentions 3 17,000 Nil

Preference Recoveries 4 120,000 20,000

Related Party Loans 5 87,890 Nil

Insolvency Trading Action 6 Nil Nil

Total Assets 471,650 194,760

Less Liabilities

Liquidator's Remuneration - 5 February 2018 - 5 April 2018 7 (85,000) (85,000)

Liquidators' Future Remuneration - 5 April 2018 - Finalisation of Liquidation 7 (65,000) (95,000)

Liquidators' Disbursements - 5 February 2018 - Finalisation of Liquidation 8 (5,000) (6,500)

Legal Costs 9 (15,000) (30,000)

Total Liabilities (170,000) (216,500)

Available Funds to Distribute to Priority Creditors 301,650 Nil

Less Priority Creditor Claims

Superannuation 10 (400,787) (400,787)

Leave Entitlements 10 (429,751) (429,751)

Redundancy and Notice Entitlements 10 (211,132) (211,132)

Total Priority Creditor Claim (1,041,670) (1,041,670)

Available Funds to Distribute to Unsecured Creditors Nil Nil

Unsecured Creditors

Unsecured Creditors 11 3,613,028 3,613,028

Related Party Claims 11 217,950 217,950

Total Unsecured Claims 3,830,978 3,830,978

Dividend Rate to Unsecured Creditors (cents in the $) Nil Nil



Notes:

1. Cash at Bank

The current funds held in the Liquidation account as at 30 April 2018 are $86,760.

Throughout the course of the Liquidation recoveries of $94,195 have been made from the collection of pre-appointment debtors and other sundry recoveries. From these recoveries, payments have been made to employees who were retained throughout the initial appointment period and other sundry expenses necessary for the Liquidators’ investigations.

Please refer to the receipts and payments listing included at Appendix B for further details.

2. Debtors

Upon our appointment the Company had a debtor book value of $586,859 with the three (3) largest debtors being Moorvale Earthmoving, Woollams Constructions and Ostwald Bros, having a combined book value debt of $441,827. Both Moorvale and Woollams have disputed the debt due to defective works and Ostwald Bros is currently in Liquidation.

Prior to our appointment, the Company submitted a Sub-Contractor Charge for the works done for Ostwald Bros. I have continued this claim and are expecting to recover $33,508 (less legal costs) of the $182,510 outstanding.

I am still in the process of assessing the Moorvale and Woollams claim of defective works.

3. Retentions

Based on the disputes raised by the party holding the retentions, I anticipate optimistic recoveries of $17,000. Pessimistically, it is unlikely there will be a recovery of the amounts outstanding. I will continue to pursue the debtor to evidence their claims that rectification costs are being incurred. Should there be any material recovery of retentions, creditors will be notified accordingly.

4. Preference Recoveries

Our preliminary investigations into the Company’s affairs have revealed potential preference payments made to suppliers. Based on our current investigations of the claims, the evidence to support the claims and our experience in running similar preference claims, I optimistically estimate $120,000 recovery. Pessimistically, I estimate recovery of $20,000.

I am in the process of finalising investigations into the potential claims and intend on writing to any creditors that may have received a preference in due course.

5. Related Party Loans

The records of the Company identified a number of related party loans. At this stage I anticipate potential collections of $87,890. Pessimistically I do not anticipate any recoveries based on the individuals’ financial capacity to satisfy any claim that may be brought against them.

6. Insolvent Trading Action

Preliminary investigations suggest the Company may have been insolvent from at least 30 June 2016 and remained insolvent up to the date of our appointment. Whilst an Insolvent Trading Claim has not



been quantified, I do not anticipate the Directors’ have the financial capacity to satisfy any claim due to their current financial obligations and asset holdings.

7. Liquidators’ Remuneration

Pursuant to Section 556 of the Act, the Liquidators’ remuneration is paid in priority to employees and unsecured creditors’ claims. My firm charges professional fees on the basis of time spent by the principal appointees and their staff at the Guide to Hourly Rates issued by FTI Consulting and included at Schedule 3 of our Remuneration Report.

Creditors have previously approved the Liquidators’ remuneration in the amount of $60,000 (excluding GST) for the period 5 February 2018 to 5 April 2018. During this period my actual remuneration was $100,496 (excluding GST). I am therefore asking creditors to increase the fee approval for this period by a further $25,000 (excluding GST). For the period 6 April 2018 to the finalisation of the Liquidation we anticipate incurring between $65,000 and $95,000 (excluding GST).

Please refer to the Remuneration Approval Report at Appendix C for further details concerning the Liquidators’ remuneration.

8. Liquidators’ Disbursements

I anticipate our disbursements to be in the vicinity of $5,000 to $6,500 (excluding GST) during the course of the liquidation. Creditors have previously approved the Liquidators’ internal disbursements for the period 5 February 2018 to the finalisation of the Liquidation in the amount of $1,500 (excluding GST). I note that creditor approval is not required for costs incurred from external providers.

9. Legal Costs

Legal costs of $11,182 (excluding GST) were incurred in the recovery of monies owed to the Company from Ostwald Bros.

Given the on-going investigations and potential voidable transactions to be pursued, legal fees are estimated to range between $15,000 and $30,000 (excluding GST).

10. Priority Creditor Claims

Pursuant to Section 556 of the Act, employees receive a priority for payment of their entitlements in full, prior to any distribution to unsecured creditors.

The Department of Employment, through its FEG Branch have advanced over $224,000 to former Employees for outstanding leave and redundancy entitlements. FEG has subrogation rights of the amount paid to Employees as a priority creditor.

11. Unsecured Creditor Claims and Related Party Claims

To date, I have received creditor claims totalling $3,830,978 including related party claims and the amount owed to the secured creditor.

Creditor claims will not be adjudicated on unless there is a return to unsecured creditors.

A proof of debt form is *attached at Appendix A for those creditors who are yet to lodge a claim in the Liquidation.



6. What Happens Next in the Liquidation? The following actions are required to proceed with the liquidation, including:

Complete my investigations into the Company’s affairs and consider the commerciality of pursuing recoveries;

Complete my reporting to ASIC;

Potentially declare and distribute a dividend to priority creditors; and

Any other matters relevant to the liquidation.

Please note that if I receive a request for a meeting that complies with the guidelines set out in the initial information provided to you, I will hold a meeting of creditors.

I may write to you again with further information on the progress of the liquidation.

I expect to have completed this liquidation within eight (8) months.

7. Proposals Without Meetings *Attached at Appendix C is my detailed Remuneration Approval Report on the cost of the Liquidation and the tasks I have undertaken which supports my claims for which approval is sought from creditors.

Creditors have previously approved our remuneration for the period 5 February 2018 to 5 April 2018 (inclusive) in the amount of $60,000 (excluding GST). During this period my actual remuneration was $100,496 (excluding GST). I am therefore asking creditors to increase the fee approval for this period by a further $25,000 (excluding GST)

I estimate that my future remuneration from 6 April 2018 until the finalisation of the Liquidation will be between $65,000 and $95,000 (excluding GST).

I propose my remuneration be approved by way of a proposal without meeting process, which will save time and costs of convening a meeting of creditors. Further information regarding proposals is detailed below. I am unable to pay my remuneration without the approval of creditors or the court.

8. Participating in the proposal Under the Act, a Liquidator is able to obtain resolutions of creditors without holding a meeting of creditors, known as a proposal without meeting. An information sheet on “Proposals Without a Meeting” is included at Appendix D.

A resolution will be passed if more than 50% in number and 50% in value (of those creditors who did vote) voted in favour of the proposal, as long as not more than 25% in value objected to the proposal being resolved without a meeting.



To participate in the proposal, please complete and return the proposal voting forms attached as Appendix E by no later than close of business Friday 1 June 2018.

The “Proof of Debt” form included at Appendix A provides information about what the Company owes you, along with supporting documents for your claim (only if you have not previously provided it).

The documents can be scanned and emailed to [email protected] or returned via post to my firm’s address, attention Nicholas Remmelt. If you choose to return these documents via post, please ensure that you allow enough time for me to receive them by the due date.

9. What to do next You should now:

• read my report and attached information

• determine if and how you are going to vote on the proposal; and

• complete and return your proposal voting form and proof of debt by 1 June 2018.

• You can access information which may assist you on the following websites:

o ARITA at www.arita.com.au/creditors

o ASIC at www.asic.giv.au (search for “insolvency information sheets”).

10. Further Information If creditors are aware of any assets that have not been disclosed and may be available for realisation, they should contact this office in writing as soon as possible.

The Australian Restructuring Insolvency and Turnaround Association (ARITA) provides information to assist creditors with understanding liquidations and insolvency. This information, including details of your rights as a creditor, is available from ARITA’s website at www.arita.com.au/creditors.

ASIC provides information sheets on a range of insolvency topics. These information sheets can be accessed on ASIC’s website at www.asic.gov.au by searching for “insolvency information sheets”.


http://www.arita.com.au/creditors

http://www.arita.com.au/creditors

http://www.asic.gov.au/



Nicholas Remmelt (07) 3225 4942 [email protected]

About FTI Consulting FTI Consulting, LLP. is a global business advisory firm dedicated to helping organisations protect and enhance enterprise value in an increasingly complex legal, regulatory and economic environment. FTI Consulting professionals, who are located in all major business centers throughout the world, work closely with clients to anticipate, illuminate and overcome complex business challenges in areas such as investigations, litigation, mergers and acquisitions, regulatory issues, reputation management and restructuring. www.fticonsulting.com

©2013 FTI Consulting, LLP. All rights reserved

Liability limited by a scheme approved under Professional Standards Legislation

Should you have any further queries please contact Nicholas Remmelt of my office on either (07) 3225 4942 or [email protected] should you require further information.

Dated this 4th day of May 2018

Joanne Dunn Liquidator

Our Ref: 460930.0001r2 – Statutory Report to Creditors


http://www.fticonsulting.com/




Table 7: List of Appendices

Appendix Document

Appendix A Proof of Debt

Appendix B Receipts and Payments

Appendix C Remuneration Report

Appendix D Proposals Without a Meeting Information Sheet

Appendix E Notice of Proposal without Meeting Voting Slip

FORMAL PROOF OF DEBT OR CLAIM (GENERAL FORM)

Subregulation 5.6.49(2)

Corporations Act 2001

BUSBY CONTRACTING PTY LTD (IN LIQUIDATION) ACN 600 022 795 (THE ‘COMPANY’)

To the Liquidators of Busby Contracting Pty Ltd

1. This is to state that the Company was on 5 February 2018, and still is, justly and truly indebted to:

Name of Creditor:

Address of Creditor:

Debt Owed: $ and cents

Particulars of the debt are:

Date Consideration (state how the debt arose)

Amount (incl. GST)

$ c

GST

$ c

Remarks (include details of voucher substantiating payment)

2. To my knowledge or belief the creditor has not, nor has any person by the creditor's order, had or received any satisfaction or

security for the sum or any part of it except for the following: (insert particulars of all securities held. If the securities are on the

property of the company, assess the value of those securities. If any bills or other negotiable securities are held, show them in a

schedule in the following form.)

Date Drawer Acceptor Amount Due Date

3. * I am the creditor personally OR

3. * I am employed by the creditor and authorised in writing by the creditor to make this statement OR

3. * I am the creditor's agent authorised in writing to make this statement in writing.

* Omit if inapplicable

I know that the debt was incurred for the consideration stated and that the debt, to the best of my knowledge and belief, remains

unpaid and unsatisfied.

Dated

Name of authorised person Signature of authorised person

Occupation Address

Email Telephone

I/we nominate to receive electronic notification of notices or documents by email at the following address:

Email address:

Appendix B

Account Total

RECEIPTS

Pre-Appointment Debtors 94,140.44

Petty Cash 55.00

PAYG Withheld 2,394.00

Reimbursement of Wages - Busby Plant Hire Pty Ltd 9,726.42

Superannuation Withheld 1,056.55

GST Refund 272.00

Total Receipts 107,644.41

PAYMENTS

Electricity Expense 735.77

IT Expense 143.00

PAYG Paid 2,394.00

Annual Leave Expense 952.44

Rent & Rates 1,205.85

Superannuation Expense 3,169.65

Telephone & Fax 1,162.26

Wages & Salaries 11,121.35

Total Payments 20,884.32

Net Receipts and Payments 86,760.09

Receipts and Payments From 6 April 2018 to 2 May 2018

Busby Contracting Pty Ltd (In Liquidation)

BUSBY CONTRACTING PTY LTD (IN LIQUIDATION) ACN 600 022 795

REMUNERATION APPROVAL REPORT

4 MAY 2018

EXPERTS WITH IMPACT™

REMUNERATION REQUEST APPROVAL REPORT

4 MAY 2018

Introduction Information included in report

This remuneration approval report provides you with the information that the Corporations Act 2001 (“Act”) and the Code of Professional Practice published by the Australian Restructuring Insolvency and Turnaround Association (“ARITA”) requires creditors to receive to make an informed decision regarding the approval of our remuneration and the cost of our internal disbursements for undertaking the Creditors Voluntary Liquidation of Busby Contracting Pty Ltd (In Liquidation) ACN 600 022 795.

This report has the following information included:

Introduction ......................................................................................................................................................................................... 1

Part 1: Declaration .............................................................................................................................................................................. 2

Part 2: Executive Summary ................................................................................................................................................................. 2

Part 3: Remuneration .......................................................................................................................................................................... 3

Part 4: Disbursements ......................................................................................................................................................................... 9

Part 5: Summary of Receipts and Payments ..................................................................................................................................... 11

Part 6: Queries .................................................................................................................................................................................. 12

Schedule 1: Table of major tasks for resolution 1 remuneration approval........................................................................................ 13

Schedule 2: Table of major tasks for resolution 2 remuneration approval........................................................................................ 16

Schedule 3: FTI Consulting Schedule of Rates .................................................................................................................................... 19

REMUNERATION APPROVAL REPORT Busby Contracting Pty Ltd (In Liquidation) ACN 600 022 795


Part 1: Declaration I, Joanne Dunn, and John Park of FTI Consulting have undertaken a proper assessment of the claims for remuneration and payment of our internal disbursements for the appointment as Liquidators of Busby Contracting Pty Ltd (In Liquidation) ACN 600 022 795 in accordance with the law and applicable professional standards. I am satisfied that the remuneration claimed is in respect of necessary work, properly performed, in the conduct of this appointment and further, that the disbursements claimed are necessary and proper.

Part 2: Executive Summary Remuneration previously approved by Creditors

The amount of remuneration previously fixed in this external administration is $60,000 (excluding GST) as summarised in Table 1 below.

Table 1: Remuneration previously approved

Period Amount (Ex GST)

5 February 2018 to 5 April 2018 (inclusive) $60,000.00

Remuneration for which approval is sought

This report provides details of the following remuneration for which approval is sought as seen in Table 2 below. Please note that the Liquidators are seeking an additional $25,000 (excluding GST) for work completed for the period 5 February 2018 to 5 April 2018 through an additional resolution as described below (Resolution 1). As detailed above, creditors have previously capped remuneration for this period at $60,000 (excluding GST) however, after including the additional resolution below, the total remuneration for this period will be capped at $85,000 (excluding GST).

Table 2: Remuneration for which approval is sought

Period Report Reference Amount (Ex GST)

Resolution 1: 5 February 2018 to 5 April 2018 (Inclusive) Table 4 $25,000.00

Resolution 2: 6 April 2018 to the finalisation of the Liquidation (inclusive)* Table 5 & 6 $95,000.00

Total remuneration being sought $120,000.00

* The quantum of future remuneration for which approval is sought is based on an estimate of the work necessary to complete the administration. Should additional work beyond what is contemplated be necessary, further approval may be sought from creditors. If a lesser amount is incurred, we will limit our remuneration to that lesser amount.



Internal Disbursements previously approved by Creditors

The amount of internal disbursements fixed in this external administration is $1,500 (excluding GST) as summarised in Table 3 below.

Table 3: Internal Disbursements previously approved

Period Amount (Ex GST)

5 February 2018 to the finalisation of the Liquidation (inclusive) $1,500.00

Please refer to the sections of the report detailed above for full details of the calculation and composition of the remuneration for which approval is sought.

Part 3: Remuneration Remuneration claim resolutions

We will be seeking approval of the following resolutions to approve our remuneration. Details to support these resolutions are shown immediately below the resolutions and in the schedules to this report.

Resolution 1: Remuneration from 5 February 2018 to 5 April 2018 (inclusive)

The remuneration of the Liquidators of Busby Contracting Pty Ltd (In Liquidation) ACN 600 022 795 for the period 5 February 2018 to 5 April 2018 (inclusive) be calculated on a time basis at the hourly rates set out in the Schedules of FTI Consulting Standard Rates effective 1 March 2017, and is determined and approved for payment in the additional amount of $25,000 (excluding GST) and the Liquidators can draw the remuneration.

Resolution 2: Remuneration from 6 April 2018 to the finalisation of the Liquidation (inclusive)

The remuneration of the Liquidators of Busby Contracting Pty Ltd (In Liquidation) ACN 600 022 795 for the period 6 April 2018 to the finalisation of the Liquidation (inclusive) be calculated on a time basis at the hourly rates set out in the Schedules of FTI Consulting Standard Rates effective 1 March 2017, and is determined and approved for payment in the amount of $95,000 (excluding GST) and the Liquidators can draw the remuneration.

Remuneration is calculated in accordance with the hourly rates applicable to the grades or classifications set out in the FTI Consulting Schedule of Standard Rates which appear at Schedule 3 to this report.

At this stage, based on the information presently available to us, we consider that it will not be necessary to seek further approval from creditors. However, the position may change depending on the progress of the external administration and the issues that may arise.



Details to support resolutions

The basis of calculating the remuneration claims are summarised below and the details of the major tasks performed and the costs associated with each of those major tasks are contained in Schedule 1 and Schedule 2.

Resolution 1: Remuneration from 5 February 2018 to the 5 April 2018 (inclusive)

Table 4 below table sets out time charged to each major task area by staff members working on the Liquidation for the period 5 February 2018 to 5 April 2018 (inclusive) which is the basis of the Resolution 1 claim. More detailed descriptions of the tasks performed within each task area, matching the amounts below, are contained in Schedule 1.

Resolution 2: Remuneration from 6 April 2018 to the finalisation of the Liquidation (inclusive)

Table 5 below table sets out time charged to each major task area by staff members working on the Liquidation for the period 6 April 2018 to 29 April 2018. I have also included below Table 6 which set outs the estimated remuneration for the period 30 April 2018 to the finalisation of the Liquidation (inclusive) which is the basis of the Resolution 2 claim. More detailed descriptions of the tasks performed within each task area, matching the amounts below, are contained in Schedule 2.



Table 4: Calculation of Remuneration for the period 5 February 2018 to 5 April 2018 (inclusive)

Resolution 1: Remuneration incurred from 5 February 2018 to 5 April 2018 (inclusive)

Assets$

Creditors$

Employees$

Trade On$

Investigation$

Administration$

Joanne Dunn Senior Managing Director 625.00 22.50 14,062.50 2,250.00 4,125.00 750.00 312.50 250.00 6,375.00Matthew Glennon Senior Director 570.00 39.80 22,686.00 6,555.00 3,990.00 2,451.00 1,881.00 1,596.00 6,213.00Renee Lobb Senior Director 570.00 0.10 57.00 0.00 0.00 0.00 0.00 0.00 57.00Neil Dempster Senior Consultant I 360.00 60.20 21,672.00 4,860.00 7,092.00 6,120.00 1,332.00 1,152.00 1,116.00Nicholas Remmelt Consultant II 360.00 0.80 288.00 0.00 144.00 108.00 0.00 0.00 36.00Robert Gemmell Director 360.00 0.50 180.00 0.00 180.00 0.00 0.00 0.00 0.00Nicholas Remmelt Consultant II 315.00 59.30 18,679.50 2,583.00 1,543.50 4,441.50 0.00 535.50 9,576.00Matteson McGuire Associate I 260.00 54.50 14,170.00 5,746.00 6,682.00 286.00 0.00 0.00 1,456.00Samuel Bail l ie Associate II 260.00 15.90 4,134.00 0.00 1,664.00 442.00 0.00 0.00 2,028.00Ashleigh Ubank Administration 2 185.00 20.60 3,811.00 0.00 1,480.00 0.00 0.00 0.00 2,331.00Carly Drew Administration 2 185.00 0.30 55.50 0.00 55.50 0.00 0.00 0.00 0.00Caroline Halcoop Administration 2 185.00 2.70 499.50 0.00 0.00 0.00 0.00 0.00 499.50Talia Glover Administration 1 155.00 1.30 201.50 0.00 0.00 0.00 0.00 0.00 201.50

Total 278.50 100,496.50 21,994.00 26,956.00 14,598.50 3,525.50 3,533.50 29,889.00GST 10,049.65Total (including GST) 110,546.15Average hourly rate (excluding GST) 360.8 373.4 339.1 367.7 470.1 436.2 352.5

Employee PositionRate/hour

excl GST $

Total actual hours

Total(excl GST)

$

Task Area



Table 5: Calculation of Remuneration for the period 6 April 2018 to 29 April 2018 (inclusive)

Resolution 2: Remuneration incurred from 6 April 2018 to 29 April 2018 (inclusive)

Assets$

Creditors$

Employees$

Investigation$

Administration$

Joanne Dunn Senior Managing Director 625.00 3.00 1,875.00 187.50 562.50 0.00 0.00 1,125.00Matthew Glennon Senior Director 570.00 4.80 2,736.00 342.00 114.00 0.00 684.00 1,596.00Neil Dempster Senior Consultant I 380.00 6.20 2,356.00 608.00 494.00 722.00 342.00 190.00Nicholas Remmelt Consultant II 360.00 27.80 10,008.00 540.00 6,300.00 324.00 1,080.00 1,764.00Kathleen O'Connor Associate I 260.00 0.10 26.00 0.00 26.00 0.00 0.00 0.00Matteson McGuire Associate I 260.00 43.30 11,258.00 0.00 728.00 572.00 8,034.00 1,924.00Ashleigh Ubank Administration 2 185.00 0.90 166.50 0.00 0.00 0.00 0.00 166.50Jessica Earnshaw Intern 155.00 7.80 1,209.00 0.00 0.00 0.00 0.00 1,209.00Talia Glover Administration 1 155.00 0.70 108.50 0.00 0.00 0.00 0.00 108.50

Total 94.60 29,743.00 1,677.50 8,224.50 1,618.00 10,140.00 8,083.00GST 2,974.30Total (including GST) 32,717.30Average hourly rate (excluding GST) 314.4 419.4 360.7 323.6 281.7 301.6

Employee PositionRate/hour

excl GST $

Total actual hours

Total(excl GST)

$

Task Area



Table 6: Calculation of Remuneration for the period 30 April 2018 to the finalisation of the Liquidation

Resolution 2: Remuneration anticipated to be incurred from 30 April 2018 to the finalisation of the Liquidation (inclusive):

Total ($)

Task Area

Assets

Creditors

Investigation

Employees

Administration

Total (est) 65,257.00 15,000.00 10,000.00 20,000.00 10,000.00 10,257.00

GST 6,528.70 1,500.00 1,000.00 2,000.00 1,000.00 1,028.70

Total (incl GST) 71,782.70 16,500.00 11,000.00 22,000.00 11,000.00 11,282.70

The total remuneration being sought for the period 6 April 2018 to the finalisation of the Liquidation is $95,000 (excluding GST) (Resolution 2). Creditors are advised that the calculation of this amount is split across Table 5 and 6 above.

Total remuneration reconciliation

At this point in time, I estimate that the total remuneration for this Liquidation will be $180,000 (excluding GST). This includes the current approval amount being sought of $120,000 (excluding GST) and the previously approved remuneration amount of $60,000 (excluding GST).

This estimate differs to the estimate of costs provided in the Initial Remuneration Notice dated 15 February 2018, which estimated a cost of the Liquidation between $60,000 and $95,000 (excluding GST), for the following reasons:

• Re-creating the internal financials of the Company to determine the solvency of the Company;

• Preparing detailed accounting to the secured creditors to assess the cross-guarantee;

• Liaising with Property Plant & Securities Register (‘PPSR’) holders and determining validity of claim;

• Verifying employee entitlements and liaising with the Department of Employment;

• Reviewed the Company’s debtor position in detail and issued demands for payment;

• Reviewing debtor responses for claims of defects;

• Corresponding with employees regarding termination of employment and effect of Liquidation;

• Assisting employees with claiming under the Fair Entitlement Guarantee Scheme (‘FEG’); and

• Conducting detailed investigations into the affairs of the Company and assessing voidable transactions and collection of same.



Comparison between current and previous remuneration approvals

At the creditors meeting via proposal, dated 9 March 2018, creditors approved my prospective remuneration of $60,000 (excluding GST) for the period 5 February 2018 to 5 April 2018. To date, I have not drawn any remuneration. My remuneration incurred for this period has exceeded this cap by $40,496.50 (excluding GST) and I am now seeking approval of a further capped amount of $25,000 (excluding GST). I am also seeking approval of additional remuneration of $95,000 (excluding GST) for the period 6 April 2018 to the finalisation of the Liquidation to enable me to complete the external administration.

In the following table I compare, on a task basis, my estimate from my report for the period 5 February 2018 to 5 April 2018 to my actual costs and provide an explanation for the difference in cost.

Table 7: Comparison between current and previous remuneration approval for the period 5 February 2018 to 5 April 2018

Task Estimate (excl GST)

$

Actual (excl GST)

$

Reasons for differences

Assets 20,000.00 21,994.00 Additional time spent assessing debtor positions and disputes with debtors regarding the amount outstanding.

Creditors 10,000.00 26,956.00 Additional reporting to the secured creditor and PPSR creditors

Employees 10,000.00 14,598.50 Additional time spent liaising with employees to assist with FEG claims

Trade On 0.00 3,525.50 Time incurred at Company premises working with employees to collect Company records

Investigation 10,000.00 3,533.50 Investigations completed after resolution period

Administration 5,000.00 29,889.00 Additional time spent undertaking administrative tasks relating to winding up the affairs of the Company

Total $60,000.00 $100,496.50

I have provided an explanation of tasks remaining to be completed, including my estimated costs to complete those tasks, to support my current remuneration approval request, at Section 3 of the report and in Schedule 2.

In preparing this remuneration approval report, I have made my best estimate at what I believe the Liquidation will cost to complete and I do not anticipate that I will have to ask creditors to approve any further remuneration. However, should the Liquidation not proceed as expected, I will advise creditors and I may seek approval of further remuneration and provide details on why the remuneration has changed.

Likely impact on dividends

The Act sets the order for payment of claims against the company and it provides for remuneration of the Liquidators to be paid in priority to other claims. This ensures that when there are sufficient funds, the Liquidators receives payment for the work done to recover assets, investigate the company’s affairs, report to creditors and ASIC and distribute any available funds. Even if creditors approve remuneration, this does not guarantee that we will be paid, as we are only paid if sufficient assets are recovered.



Any dividend to creditors will also be impacted by the amount of assets that we are able to recover and the amount of creditor claims that are admitted to participate in any dividend, including any claims by priority creditors such as employees.

Based on:

• realisations to date,

• estimated future realisations,

• my estimated remuneration to complete the Liquidation, and

• the estimated total of creditor claims based on the company’s records and claims lodged now,

I estimate that a dividend of between 0 and 76 cents in the dollar will be paid in the Liquidation to priority creditors in relation to outstanding superannuation. However, this is subject to a range of variables, particularly the future realisations.

There are not expected to be sufficient funds to pay a dividend to unsecured creditors.

Remuneration recovered from external sources

On 23 February 2018, the Department of Employment engaged FTI Consulting to assist with the administration of the Fair Entitlements Guarantee Act 2012 as it applied to the former employees of Busby Contracting Pty Ltd (In Liquidation) ACN 600 022 795 pursuant to a fixed fee agreement of $390 (excluding GST) per employee.

On 2 May 2018, FTI Consulting issued a tax invoice to the Department for the amount of $4,680 (excluding GST).

Remuneration payments received in relation to the administration of the Fair Entitlements Guarantee Act 2012 are not subject to creditor approval but are disclosed to provide creditors with full disclosure of the remuneration paid and/or recoverable from external sources.

Part 4: Disbursements Explanatory note on disbursements

Disbursements are divided into three types:

• Externally provided professional services -these are recovered at cost. An example of an externally provided professional service disbursement is legal fees.

• Externally provided non-professional costs - these are recovered at cost. Examples of externally provided non-professional costs are travel, accommodation and search fees.

• Internal disbursements such as photocopying, printing and postage. These disbursements, if charged to the Administration, would generally be charged at cost; though some expenses such as telephone calls, photocopying and printing may be charged at a rate which recoups both variable and fixed costs. The recovery of these costs must be on a reasonable commercial basis. Details of the basis of recovery of each of these costs is discussed below.

Internal disbursements not charged at cost must be approved by creditors before we can draw the cost of those disbursements from this external administration.



Creditor approval is not required in relation to externally provided professional and non-professional costs or disbursements charged at cost. Where payments to third parties have been made from the bank account of the external administration, those payments are disclosed in the summary of receipts and payments. Creditors have the right to question the incurring of the disbursements and can challenge disbursements in Court.

I note that creditors have previously approved our internal disbursements in the amount of $1,500 (excluding GST).

The following disbursements have been incurred by the external administration to FTI Consulting during the period 5 February 2018 to 29 April 2018. Where an amount has been paid to FTI Consulting as reimbursement of externally provided services and costs, such payment is on account of an amount previously paid by FTI Consulting either due to a lack of funds in the external administration at the time the payment was due, or pursuant to the invoicing of FTI Consulting directly by the supplier. All of the paid items summarised below appear in the receipts and payments listing which is included at Appendix B of the Report to Creditors.

Table 8: Disbursements incurred from 5 February 2018 to 29 April 2018

Disbursements claimed Basis of charge excl GST

$

Amount excl GST

$ Externally provided non-professional services Airfares At cost 344.83 Accommodation At cost 127.27 Meal Expenses At cost 27.89 Search Fees At cost 145.76 Storage Expenses At cost 2,602.00 Taxi Expense At cost 180.86 Office Supplies At cost 149.09 Parking Expense At Cost 62.73 Credit Card Charges At Cost 71.00 Sub-Total 3,711.43 Internal Disbursements Postage At cost 550.31 Printing & photocopying $0.09 per unit of time charged 238.50 Telephone Charges $0.10 per unit of time charged 265.00 Sub-Total 1,053.81 Total 4,765.24



Future basis of internal disbursements

Future internal disbursements will be charged to the administration on the basis of the Schedule of FTI Consulting Internal Disbursement Rates as shown in Table 9 below.

Table 9: Schedule of FTI Consulting Internal Disbursement Rates

Disbursement Basis of Charge (Ex GST)

Advertising and search fees At cost

Courier At cost

Postage At cost

Facsimile, printing and photocopying $0.09 per unit of time charged

Telephone calls $0.10 per unit of time charged

Storage and storage recall At cost

Staff travel – mileage ATO rates - cents per km method

Other staff travel/out of pockets At cost

Part 5: Summary of Receipts and Payments A summary of receipts and payments to and from the bank account for the Liquidation for 5 February 2018 to 2 May 2018 appears as Appendix B in the Report to Creditors which accompanies this report.

If any large or exceptional receipts and payments are received or made after this report is prepared but before the meeting at which this claim for remuneration will be considered, additional information will be provided at the meeting.

Nicholas Remmelt (07) 3225 4942 [email protected]

About FTI Consulting FTI Consulting, LLP. is a global business advisory firm dedicated to helping organisations protect and enhance enterprise value in an increasingly complex legal, regulatory and economic environment. FTI Consulting professionals, who are located in all major business centers throughout the world, work closely with clients to anticipate, illuminate and overcome complex business challenges in areas such as investigations, litigation, mergers and acquisitions, regulatory issues, reputation management and restructuring. www.fticonsulting.com

©2013 FTI Consulting, LLP. All rights reserved

Liability limited by a scheme approved under Professional Standards Legislation



Part 6: Queries If you have any queries or require any further information concerning our claim for remuneration please contact Nicholas Remmelt on (07) 3225 4942 or via email on [email protected].

You can also access information which may assist you on the following websites:

• ARITA at www.arita.com.au/creditors

• ASIC at www.asic.giv.au (search for insolvency information sheets).

Yours faithfully FTI Consulting Joanne Dunn Liquidator

Our Red: NJR_460930.0001_Rem


http://www.fticonsulting.com/




Schedule 1: Table of major tasks for resolution 1 remuneration approval Table 10 provides a description of the work undertaken in each major task area for the period 5 February 2018 to 5 April 2018 (inclusive).

Table10: Work undertaken for the period 5 February 2018 to 5 April 2018 (inclusive)

Task Area General Description Includes

Assets

58.9 hours

$21,994.00

Debtors Review of debtors according to the Company records

Issue correspondence to debtors of the Company directing repayment to the Company

Communications with debtors in relation to debts outstanding, and any tasks relevant to the recovery of the debt, including disputed debts

Reviewing debtor disputes for payment

Liaising with debtors regarding defective works claimed

Assessing collectability of debtors

Other assets Reviewing any other assets and realising

Cash and bank accounts Communications with Banks to freeze accounts and

transfer funds

Reconciliation and realisation of cash on hand including petty cash

Creditors

79.5 hours

$26,956.00

Creditor enquiries Receiving creditor enquiries

Responding to creditor enquiries by telephone, email, facsimile and post

Retention of title (ROT) claims Initial communications with creditors concerning ROT

claims

Review, consideration and adjudication of ROT claims

Maintaining register of ROT claims

Advising creditors of ROT claim adjudication

Payments to creditors with valid claims

Returning goods to creditors with valid claims

Secured Creditor Reporting Reporting to secured creditor

Responding to queries raised by secured creditor




Creditor reports & circulars Preparation and issuance of first report to creditors

pursuant to Section 70-30 of the Insolvency Practice Rules (Corporations) 2016 (“IPR”)

Preparation and issuance of statutory ‘dividend’ report to creditors pursuant to Section 70-40 of the IPR

Processing proofs of debt (PODs) not relating to a dividend

Issuing, receiving and filing PODs

Adjudication on PODs

Maintaining POD register

Employees

39.7 hours

$14,598.50

Employee enquiries Receiving employee enquiries

Responding to employee enquiries by telephone, email, facsimile and post

Communications with employees concerning entitlements and options

Communications with employees concerning disputed entitlements

FEG Communications with FEG

Preparing quotation for FEG

Preparing FEG verification spreadsheet

Calculating entitlements Reviewing employee files and company books and

records

Reviewing awards

Reconciling superannuation accounts and entitlement balances

Determining employee entitlements

Other issues

Other issues Communications with Child Support

Trade On

7.5 hours

$3,525.50

Trade On Management Communications with managers and staff

Attendances on site

Communications with OSR concerning payroll tax issues




Processing receipts and payments Processing receipts and payments for employee wages

and other entitlements

Organising payment of IT services

Investigation

8.1 hours

$3,533.50

Conducting investigation into affairs of the Company

Collecting company books and records

Reviewing books and records

Identification of transactions requiring further investigation

Administration

87.0 hours

$31,229.50

Appointment Receiving appointment documents

Securing and backing up computer and accounting data

Communications with Company officers (including RATA packs)

Advising third parties of appointment including ATO, OSR and utilities

General Word processing including correspondence, file notes,

agendas and minutes

Care and maintenance of the file

File review/checklist/document maintenance

Document filing and maintenance

File reviews

Updating checklist

Bank accounts Opening bank accounts

Bank account reconciliations

Procuring and reviewing bank account statements

Communications concerning bank account transactions

ASIC lodgements Preparation and lodging necessary forms with ASIC

(505, 524 etc)

General communications with ASIC

ATO lodgements Notification of appointment

Preparation and submission of BAS

Storage of books and records Organising and storage of book and records



Schedule 2: Table of major tasks for resolution 2 remuneration approval Table 11 provides a description of the work completed and to be completed in each major task area for the period 6 April 2018 to the finalisation of the Liquidation (inclusive).

Table 11: Work completed and to be completed for the period 6 April 2018 to the finalisation of the Liquidation (inclusive)


Assets

$16,677.50

Debtors Reviewing and assessing debtor ledgers

Communications (written and oral) with debtors

Instructing and communications with debt collectors and solicitors

Realising debtors and maintaining schedule of debtor position

Liaising with retention holders and reviewing potential recovery

Creditors

$18,224.50

Creditor enquiries Receiving creditor enquiries

Maintaining register of creditor enquiries

Responding to creditor enquiries by telephone, email, facsimile and post

Secured Creditor Reporting Reporting to secured creditor

Responding to queries raised by secured creditor

Creditor reports & circulars Preparation and issuance of first report to creditors

pursuant to Section 70-30 of the Insolvency Practice Rules (Corporations) 2016 (“IPR”)

Preparation and issuance of statutory ‘dividend’ report to creditors pursuant to Section 70-40 of the IPR

Processing proofs of debt (PODs) not relating to a dividend

Issuing, receiving and filing PODs

Adjudication on PODs

Maintaining POD register

Employees

$11,618.00

Employee enquiries Receiving employee enquiries

Maintaining register of employee enquiries

Responding to employee enquiries by telephone, email, facsimile and post

Communications with employees concerning




entitlements and options

Communications with employees concerning disputed entitlements

FEG Communications with FEG

Employee dividend Communications with employees

Communications with ATO concerning SGC proof of debt

Calculating dividend rate

Preparing dividend file

Receiving PODs

Adjudicating on PODs

Preparing for distribution

Preparation and distribution of payment summaries

Remitting PAYG to the ATO

Other issues Communications with Centrelink

Investigation

$30,140.00

Conducting investigation into affairs of the Company

Reviewing books and records

Investigating and understanding company nature and history

Obtaining and reviewing statutory searches

Preparation of comparative financial statements

Preparation of deficiency statement

Investigating specific transactions warranting investigation

Communications with directors and/or officers concerning company information

Preparation of investigation file

Litigation/Recoveries Identification of potential actions/recoveries

Preparation of brief to solicitor

Communications and meetings with solicitor

Letters of demand and subsequent negotiations




Attending to settlement of actions/recoveries

Reporting to ASIC Preparation of statutory investigation report

Communications with ASIC concerning investigations

Administration

$18,340.00

General Word processing including correspondence, file notes,

agendas and minutes

Care and maintenance of the file

File review/checklist/document maintenance

Administration review

Document filing and maintenance

File reviews

Updating checklist

Bank accounts Closing bank accounts

Bank account reconciliations

Procuring and reviewing bank account statements

Communications concerning bank account transactions

ASIC lodgements Preparation and lodging necessary forms with ASIC

(505, 524 etc)

General communications with ASIC

ATO lodgements Preparation and submission of BAS

Storage of books and records Dispatching and receiving books and records to/from

storage

Finalisation Communication with ATO concerning finalisation

Cancelling ABN/GST/PAYG registration

Finalising WIP

Completing checklists



Schedule 3: FTI Consulting Schedule of Rates FTI Consulting Standard Rates effective 1 March 2017

(excluding GST)

Typical classification All Offices $/hour

General guide to classifications

Senior Managing Director

625 Registered/Official Liquidator and/or Trustee, with specialist skills and extensive experience in all forms of insolvency administrations. Alternatively, has proven leadership experience in business or industry, bringing specialist expertise and knowledge to the administration.

Managing Director

580 Specialist skills brought to the administration. Extensive experience in managing large, complex engagements at a very senior level over many years. Can deputise for the appointee. May also be a Registered/Official Liquidator and/or Trustee. Alternatively, has extensive leadership/senior management experience in business or industry.

Senior Director

570 Extensive experience in managing large, complex engagements at a very senior level over many years. Can deputise for the appointee, where required. May also be a Registered/Official Liquidator and/or Trustee or have experience sufficient to support an application to become registered. Alternatively, has significant senior management experience in business or industry, with specialist skills and/or qualifications.

Director

510 Significant experience across all types of administrations. Strong technical and commercial skills. Has primary conduct of small to large administrations, controlling a team of professionals. Answerable to the appointee, but otherwise responsible for all aspects of the administration. Alternatively, has significant senior management experience in business or industry, with specialist skills and/or qualifications.

Senior Consultant 2 440 Typically an ARITA professional member. Well-developed technical and commercial skills. Has experience in complex matters and has conduct of small to medium administrations, supervising a small team of professionals. Assists planning and control of medium to larger administrations.

Senior Consultant 1

380 Assists with the planning and control of small to medium administrations. May have the conduct of minor administrations. Can supervise staff. Has experience performing more difficult tasks on larger administrations.

Consultant 2 360 Typically ICAA qualified (or similar). Required to control the tasks on small administrations and is responsible for assisting with tasks on medium to large administrations.

Consultant 1 315 Qualified accountant with several years’ experience. Required to assist with day-to-day tasks under the supervision of senior staff.

Associate 2 280 Typically a qualified accountant. Required to assist with day-to-day tasks under the supervision of senior staff.

Associate 1 260 Typically a university undergraduate or graduate. Required to assist with day-to-day tasks under the supervision of senior staff.

Junior Associate 185 Undergraduate in the latter stage of their university degree.

Administration 2 185 Well-developed administrative skills with significant experience supporting professional staff, including superior knowledge of software packages, personal assistance work and/or office management. May also have appropriate bookkeeping or similar skills.

Junior Accountant 155 Undergraduate in the early stage of their university degree.

Administration 1 155 Has appropriate skills and experience to support professional staff in an administrative capacity.

The FTI Consulting Standard Rates above apply to the Corporate Finance & Restructuring practice and are subject to review at 1 January each year.

ARITA ACN 002 472 362

Level 5, 191 Clarence Street, Sydney NSW 2000 Australia | GPO Box 4340, Sydney NSW 2001 t +61 2 8004 4344 | e [email protected] | arita.com.au

AUSTRALIAN RESTRUCTURING INSOLVENCY & TURNAROUND ASSOCIATION

Information sheet: Proposals without meetings

You may be a creditor in a liquidation, voluntary administration or deed of company arrangement (collectively referred to as an external administration).

You have been asked by the liquidator, voluntary administrator or deed administrator (collectively referred to as an external administrator) to consider passing a proposal without a meeting.

This information sheet is to assist you with understanding what a proposal without a meeting is and what your rights as a creditor are.

Meetings of creditors were previously the only way that external administrators could obtain the views of the body of creditors. However, meetings can be very expensive to hold.

A proposal without a meeting is a cost effective way for the external administrator to obtain the consent of creditors to a particular course of action.

The external administrator is able to put a range of proposals to creditors by giving notice in writing to the creditors. There is a restriction under the law that each notice can only contain a single proposal. However, the external administrator can send more than one notice at any single time.

The notice must:

• include a statement of the reasons for the proposal and the likely impact it will have on creditors if it is passed

• invite the creditor to either: o vote yes or no to the proposal, or o object to the proposal being resolved without a meeting, and

• specify a period of at least 15 business days for replies to be received by the external administrator.

If you wish to vote or object, you will also need to lodge a Proof of Debt (POD) to substantiate your claim in the external administration. The external administrator will provide you with a POD to complete. You should ensure that you also provide documentation to support your claim.

If you have already lodged a POD in this external administration, you do not need to lodge another one.

The external administrator must also provide you with enough information for you to be able to make an informed decision on how to cast your vote on the proposal. With some types of proposals, the law or ARITA’s Code of Professional Practice sets requirements for the information that you must be provided.

What types of proposals can be put to creditors?

What information must the notice contain?

What is a proposal without a meeting?

AUSTRALIAN RESTRUCTURING INSOLVENCY & TURNAROUND ASSOCIATION PAGE 2

22302 - INFO - Proposals information sheet v1_0.docx Version: July 2017

For example, if the external administrator is asking you to approve remuneration, you will be provided with a Remuneration Approval Report, which will provide you with detailed information about how the external administrator’s remuneration for undertaking the external administration has been calculated.

You can choose to vote yes, no or object to the proposal being resolved without a meeting.

A resolution will be passed if more than 50% in number and 50% in value (of those creditors who did vote) voted in favour of the proposal, but only so long as not more than 25% in value objected to the proposal being resolved without a meeting.

If the proposal doesn’t pass and an objection is not received, the external administrator can choose to

amend the proposal and ask creditors to consider it again or the external administrator can choose to hold a meeting of creditors to consider the proposal.

The external administrator may also be able to go to Court to seek approval.

If more than 25% in value of creditors responding to the proposal object to the proposal being resolved without a meeting, the proposal will not pass even if the required majority vote yes. The external administrator will also be unable to put the proposal to creditors again without a meeting.

You should be aware that if you choose to object, there will be additional costs associated with convening a meeting of creditors or the external administrator seeking the approval of the Court. This cost will normally be paid from the available assets in the external administration.

This is an important power and you should ensure that it is used appropriately.

The Australian Restructuring Insolvency and Turnaround Association (ARITA) provides information to assist creditors with understanding external administrations and insolvency.

This information is available from ARITA’s website at artia.com.au/creditors.

ASIC also provides information sheets on a range of insolvency topics. These information sheets can be accessed on ASIC’s website at asic.gov.au (search for “insolvency information sheets”).

What are your options if you are asked to vote on a proposal without a meeting?

What happens if the proposal doesn’t pass?

What happens if I object to the proposal being resolved without a meeting?

Where can I get more information?

How is a resolution passed?

NOTICE OF PROPOSAL TO CREDITORS

Busby Contracting Pty Ltd (In Liquidation) ACN 600 022 795 (‘the Company’)

Please complete this document and return with any supporting documents by no later than 1 June 2018 for your vote to be counted, by email to Nicholas Remmelt at [email protected]. If you have any questions please call (07) 3225 4942. Completed forms may also be sent by post attention to Nicholas Remmelt at FTI Consulting, GPO Box 3127 Brisbane, QLD, 4001, although you should ensure this is sent with sufficient time to arrive by the date the vote closes.

Proposal for creditor approval

Resolution 1: Remuneration for the Period 5 February 2018 to 5 April 2018 (inclusive). “The remuneration of the Liquidators of Busby Contracting Pty Ltd (In Liquidation) ACN 600 022 795 for the period 5 February 2018 to 5 April 2018 (inclusive) be calculated on a time basis at the hourly rates set out in the Schedules of FTI Consulting Standard Rates effective 1 March 2017, and is determined and approved for payment in the additional amount of $25,000 (excluding GST) and the Liquidators can draw the remuneration."

Reasons for the proposal and the likely impact it will have on creditors if it is passed

The proposal is being put to creditors to approve remuneration as allowed under law. The proposal if passed will minimise the cost of approving remuneration to the Liquidators, which would otherwise require a meeting of creditors or court application to be approved – which can be costly. Remuneration and disbursements of the Liquidators is to be paid in priority to other claims under the Corporations Act. This ensures that when there are sufficient funds, the Liquidators receive payment for the work done to recover assets, investigate the company’s affairs, report to creditors and ASIC and distribute any available funds. Even if creditors approve my remuneration, this does not guarantee that I will be paid, as I am only paid if sufficient assets are recovered. If sufficient assets are recovered, there may be funds available to pay a dividend to priority creditors, however this is affected by many variables including the cost of attending to statutory obligations, the level of creditor enquiries and the total value of priority creditor claims to be admitted to participate in a dividend. I do not anticipate a dividend for unsecured creditors in this Liquidation. My Remuneration Approval Report, which has been provided with this notice provides more detailed information on the remuneration I am seeking to be approved.


Vote on proposal

Creditors have the option of approving, not approving or objecting to the proposal being resolved without a meeting of creditors. Please select the appropriate Yes, No or Object box referred to below:

Yes ☐ I approve the proposal No ☐ I do not approve the proposal Object ☐ I object to the proposal being resolved without a meeting of creditors

Creditor details

Name of creditor: ACN / ABN (if applicable): ☐ I am not a related creditor of the Company. ☐ I am a related creditor of the Company, relationship:

Address:

Name of creditor / authorised person:

Signature: Date:

NOTICE OF PROPOSAL TO CREDITORS

Busby Contracting Pty Ltd (In Liquidation) ACN 600 022 795 (‘the Company’)

Please complete this document and return with any supporting documents by no later than 1 June 2018 for your vote to be counted, by email to Nicholas Remmelt at [email protected]. If you have any questions please call (07) 3225 4942. Completed forms may also be sent by post attention to Nicholas Remmelt at FTI Consulting, GPO Box 3127 Brisbane, QLD, 4001, although you should ensure this is sent with sufficient time to arrive by the date the vote closes.

Proposal for creditor approval

Resolution 2: Remuneration for the Period 6 April 2018 to the finalisation of the Liquidation (inclusive). “The remuneration of the Liquidators of Busby Contracting Pty Ltd (In Liquidation) ACN 600 022 795 for the period 6 April 2018 to the finalisation of the Liquidation (inclusive) be calculated on a time basis at the hourly rates set out in the Schedules of FTI Consulting Standard Rates effective 1 March 2017, and is determined and approved for payment in the amount of $95,000 (excluding GST) and the Liquidators can draw the remuneration.”

Reasons for the proposal and the likely impact it will have on creditors if it is passed

The proposal is being put to creditors to approve remuneration as allowed under law. The proposal if passed will minimise the cost of approving remuneration to the Liquidators, which would otherwise require a meeting of creditors or court application to be approved – which can be costly. Remuneration and disbursements of the Liquidators is to be paid in priority to other claims under the Corporations Act. This ensures that when there are sufficient funds, the Liquidators receive payment for the work done to recover assets, investigate the company’s affairs, report to creditors and ASIC and distribute any available funds. Even if creditors approve my remuneration, this does not guarantee that I will be paid, as I am only paid if sufficient assets are recovered. If sufficient assets are recovered, there may be funds available to pay a dividend to priority creditors, however this is affected by many variables including the cost of attending to statutory obligations, the level of creditor enquiries and the total value of priority creditor claims to be admitted to participate in a dividend. I do not anticipate a dividend for unsecured creditors in this Liquidation. My Remuneration Approval Report, which has been provided with this notice provides more detailed information on the remuneration I am seeking to be approved.


Vote on proposal

Creditors have the option of approving, not approving or objecting to the proposal being resolved without a meeting of creditors. Please select the appropriate Yes, No or Object box referred to below:

Yes ☐ I approve the proposal No ☐ I do not approve the proposal Object ☐ I object to the proposal being resolved without a meeting of creditors

Creditor details

Name of creditor: ACN / ABN (if applicable): ☐ I am not a related creditor of the Company. ☐ I am a related creditor of the Company, relationship:

Address:

Name of creditor / authorised person:

Signature: Date:

Busby Contracting Pty Ltd ACN 600 022 795 (In Liquidation .../media/Files/... · 5/4/2018 · ACN...

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