LAURA ASHLEY (AUSTRALIA) PTY LTD (IN LIQUIDATION) ACN …/media/Files/apac-files/creditors-portal/cip... · This report sets out the Liquidators’ acts and dealings for the ... hardware

LAURA ASHLEY (AUSTRALIA) PTY LTD

(IN LIQUIDATION)

ACN 004 817 323

(“THE COMPANY”)

REPORT TO CREDITORS

26 SEPTEMBER 2017

EXPERTS WITH IMPACT™

ANNUAL REPORT TO CREDITORS Laura Ashley (Australia) Pty Ltd (In Liquidation)

2 · FTI Consulting

Pursuant to Section 508(1)(b)(ii) of the Corporations Act 2001 (“the Act”), a liquidator is required to

prepare a report which complies with subsection (3) setting out an account of the progress of the

liquidation.

This report sets out the Liquidators’ acts and dealings for the twelve (12) months ending 30 June 2017.

The previous report to creditors was dated 16 May 2016.

I set out below a report on the conduct to date of the liquidation under the following main headings:

1. INTRODUCTION AND SUMMARY OF KEY ACTIONS

2. ASSETS AND LIABILITIES OF THE COMPANY

3. INVESTIGATIONS INTO THE COMPANY’S AFFAIRS

4. LIKELIHOOD OF A DIVIDEND TO CREDITORS

5. MEETING OF CREDITORS

6. STATEMENT OF RECEIPTS AND PAYMENTS

7. LIQUIDATORS’ REMUNERATION

8. ACTS AND DEALINGS TO BE COMPLETED BY THE LIQUIDATORS

This report is not for general circulation or publication and it is provided specifically for the benefit of

creditors of the Company. It is not to be quoted from or reproduced or used for any other purpose

without the express consent of the Liquidators.

1. INTRODUCTION AND SUMMARY OF KEY ACTIONS

Messrs. Ross Blakeley, Quentin Olde and John Park were appointed Joint and Several Administrators

(“Administrators”) of the Company by resolution of the Director on 7 January 2016, pursuant to Section

436A of the Act.

The Administrators continued to trade the business whilst options were explored.

On 30 June 2016, at the Reconvened Second Meeting of Creditors of the Company, it was resolved that

the Company be Wound Up pursuant to Section 439C of the Act and Messrs. Ross Blakeley, Quentin

Qlde and John Park be appointed Joint and Several Liquidators of the Company (“Liquidators”).

A sale of the business and its assets was ultimately achieved to L Ashley Pty Ltd (“Buyer”) for $3,000,000

(subject to adjustments), with settlement occurring on 10 June 2016. Considerable actions were taken

by the Liquidators post-settlement and are detailed within this report.

This report has been prepared to provide creditors of the Company with a general update as to the

progress of the liquidation, and events since our appointment as Liquidators.


3 · FTI Consulting

Certain information, considered commercially sensitive or subject to ongoing legal actions or

negotiations by the Liquidators, has been omitted from this report.

Where possible, information no longer considered commercially sensitive has been released in order to

provide creditors with an insight into the work performed by the Liquidators and the outcome of such

work.

It is reiterated that the contents of this report are strictly for creditor’s information only and are not

intended to be conclusive with respect to all issues addressed by the Liquidators.

There have been considerable issues dealt with, actions taken and outcomes achieved since our

appointment as Liquidators.

A summary of the Liquidators’ actions since their appointment on 30 June 2016 include:

i. Satisfying the Conditions Precedent to completing the sale of the business which included assigning

leases with landlords and executing Deeds of Release from all creditors with security interests over

the Company’s assets.

ii. Agreeing settlement adjustments with the Buyer and the Final Net Purchase Price of the business,

taking into account Stock on Hand which included raw materials, employee entitlements,

prepayments, and store cash floats available.

iii. Reaching settlements and recovering $250,043 in respect of unfair preference payments to date.

iv. Completing a solvency analysis of the Company which has formed the basis of a detailed affidavit

that will be used in future litigation.

v. Pursuing a claim for trading whilst insolvent against the Director of the Company, Mr Daryl Chait.

vi. Initiating and settling related party transaction claims against Ms Jacqueline Chait (Daryl Chait’s

estranged wife), Parque Pty Ltd (In Liquidation) and L.A. (New Zealand) Pty Ltd (In Liquidation), with

recoveries totalling $377,308.

vii. Liaising with the ATO to determine the quantum of outstanding superannuation for the Company.

The abovementioned and further issues are discussed in greater detail in the report below.

2. TRADING AND SALE OF BUSINESS ASSETS As previously advised in the Report to Creditors pursuant to Section 439A of the Act, the Administrators

conducted an assessment of the historical and current trading performance of each of the Company’s

stores. The Administrators closed unprofitable stores and continued to trade stores which were

considered to underpin a potentially viable business and thus may have a going concern value.

During the period in which the business was operating under the control of the Administrators, a

substantial amount of stock was sold and replenished as part of the Administrators’ trade on strategy.

Following the Administrators’ successful trading of the business and calling for expressions of interest, a

successful sale of the Company’s business and assets was achieved on 10 June 2016 for $3,000,000

(subject to adjustments).


4 · FTI Consulting

The sale resulted in a number of benefits for creditors of the Company including:

The transfer of certain employees to the Buyer avoided the crystallization of significant

retrenchment liabilities allowing for a reduction in creditor claims;

A reduction in landlord claims against the Company should the Liquidators have had to terminate

all leases; and

The achievement of a significantly higher value for the realisation of physical assets than would

have been possible had the Company’s assets been sold in a forced liquidation scenario.

Along with the sale of the business, fit outs and stock, the Liquidators also realised a number of other

assets of the Company including warehouse pallet racking, a motor vehicle and forklift. Recoveries from

the sale of these assets are reflected in the Liquidators’ accounting of Receipts and Payments enclosed

at Annexure A.

3. ASSETS AND LIABILITIES OF THE COMPANY

A Report as to Affairs (“RATA”) for the Company was provided by the Director during the administration, which is detailed below. The Liquidators have sought to recover what available assets there were and provide their commentary on each below.

Assets and Liabilities

Book Value ERV

Note $ $

Assets not subject to specific security interests

Interest in land 0 0

Sundry debtors 1 565,421 0

Cash on hand 2 95,007 95,007

Cash at bank 3 730,376 730,376

Stock 4 6,389,142 14,000,000

Work in progress / raw materials 5 1,847,823 4,000,000

Plant and equipment 6 10,074,849 100,000

Other assets 7 42,000 28,160

Totals assets not specifically charged 19,744,618 18,953,543

Assets subject to specific security interests 8 65,978 Undisclosed

Less amounts owing 8 (47,898) Undisclosed

Net assets subject to specific charges 18,080 Undisclosed

Amounts payable in advance of secured creditors 9 (2,330,648) Undisclosed

Amounts owing and secured by debenture or floating charge

10 (5,326,440) Undisclosed

Total claims (7,657,088) Undisclosed

Unsecured creditors 11 (10,747,125) Undisclosed

Surplus / (Deficiency) (18,404,213) Unknown


5 · FTI Consulting

The following notes should be read in conjunction with the table above:

Note 1 – Sundry Debtors

The Director has disclosed trade debtors of $565,421. This includes debtors due from Director-related

parties of $482,606 which are not considered collectable. There are debtors from independent third

parties totalling $44,917, however these were excess of 120 days due as at 7 January 2016. The

Liquidators wrote to all unrelated debtors requesting immediate payment however do not anticipate

any further debtor recoveries.

Note 2 – Cash on Hand

Cash on hand represented cash floats at stores and were used by the Liquidators during the course of

trading on the Company.

Note 3 – Cash at Bank

At appointment, the Company had a credit bank balance of $730,377. However, as the Commonwealth

Bank of Australia (“Bank”) was also owed approximately $6 million, an application of a right of set-off

reduced the balance to Nil.

Note 4 – Stock

The Director’s Estimated Realisable Value (“ERV”) of stock was valued at retail price. During the course

of trading on the Company, the Liquidators realised a substantial amount of the stock, in addition to

purchasing new stock.

Upon the sale of the business assets, the Liquidators transferred all remaining stock on hand to the

Buyer. After costs, the total amount received for the sale of the remaining stock to the Buyer was

$1,335,680.

Note 5 – Work in Progress / Raw Materials

The Director included the total cost of stock on order with overseas suppliers. This did not include costs

which would have been required to realise these assets. The majority of stock only had minimal (if any)

deposits paid against it with significant further payments required to have the stock released and

available for sale. The Liquidators realised all the stock held in the Company’s warehouse at Port

Melbourne and purchased certain stock from overseas suppliers during the ordinary course of trading

(at discounts to original pre-appointment stock order values).

The remaining WIP/Raw Materials held by the Liquidators was sold as part of the sale of the business

and assets for $150,000.

Note 6 – Plant and Equipment

The total of the amount realised for the Company’s plant and equipment was $1,221,921 comprising:

Value attributed to all plant and equipment included in the sale of business being computer

hardware and software equipment, machinery, furniture, fixtures and fittings owned by the

Company in connection with the business located in the leased stores (i.e. store fit-outs) and head

office;


6 · FTI Consulting

Values achieved for the sale of Company owned motor vehicles to the Buyer comprising a 2012

Great Wall Dual Cab Utility vehicle (assessed realisable value $7500), and a 2012 Mercedes Sprinter

3.5 tonne van (assessed realisable value $20,000).

An additional Company owned vehicle being a 2012 Suzuki Alto Hatchback which was sold through

Grays Online (“Grays”) with a realisable value of $4,645;

Company owned pallet racking previously located in the Company’s Port Melbourne warehouse

and was sold through Grays (realisable value $38,670); and

Company owned forklifts which comprised a Walkie Stacker (realisable value $2,500) sold to the

Buyer, and a Crown Reach forklift sold through Grays (realisable value $8,609).

Note 7 – Other Assets

The Liquidators have identified two (2) shareholdings.

Details of the identified shareholdings (which are held in a former name of the Company) are

summarised below:

Former Company Name Period of Registration Name of Shareholding No. of Shares

L. A. (Australia) Pty Ltd 2 May 1997 to 20 May 2002 Telstra Limited 400

L. A. (Australia) Pty Ltd 2 May 1997 to 20 May 2002 Laura Ashley Limited (U.K) 50,000

Total 50,400

As the above listed shareholdings are held in a previously used Company name, the Liquidators have

experienced difficulty in realising the shares. The Liquidators are corresponding with the relevant share

registries in order to update the Company’s details to enable the realisation of the shares.

Note 8 – Net Assets Subject to Specific Charges

This represents the net position of leased equipment. There was no surplus available to creditors. Note 9 – Amounts Payable in Advance of Secured Creditors

This represents employee liabilities. The Director’s estimates did not include any crystallised redundancies. Employee liabilities include annual leave, leave loading, long service leave, payment in lieu of notice (“PILN”), redundancy and Superannuation Guarantee Charges (“SGC”) that have not been paid by the Company. Note 10 - Amounts Owing and Secured by Debenture or Floating Charge

This represents the Company’s indebtedness to the Bank for a number of different banking facilities. Note 11 – Unsecured Creditors

The Liquidator expects unsecured creditor claims to exceed the book value provided by the Director after accounting for claims which include: Lease break costs;

Customers whose orders the Company did not complete;

Receipt of invoices not previously entered into the Company’s accounting system;

Shortfall to the Bank; and

Recoveries from creditors whom received preference payments from the Company.


7 · FTI Consulting

4. INVESTIGATIONS INTO THE COMPANY’S AFFAIRS Unfair Preference Payments 4.1.

The Administrators’ preliminary investigations identified payments totalling circa $3.9 million to various

creditors which warranted further investigation for recovery as possible unfair preference claims in a

liquidation.

The relation back day in respect of the Company for the purposes of the unfair preference provisions of

the Act is 7 January 2016.

Accordingly, any payments to creditors paid by the Company between 8 July 2015 and 7 January 2016 (“Relation Back Period”) may be deemed by a Court to be an unfair preference pursuant to Pt 5.7B of the Corporations Act 2001 (“the Act”).

4.1.1. Settlements Achieved The Liquidators wrote to all creditors identified as potentially receiving a preferential payment.

Negotiated settlements in respect to unfair preference claims have been agreed with certain creditors,

enabling the resolution of these claims expeditiously at minimal cost.

The table below provides a summary of unfair preference settlements achieved to date.

Summary of Unfair Preference Claim Settlements

No. Creditor Claim ($) Settlement Amount ($) Recovery %

1 Withheld 52,043.49 52,043.49 100.0%

2 Withheld 40,000.00 30,000.00 75.0%

3 Withheld 70,049.41 60,000.00 85.7%

4 Withheld 81,234.00 60,000.00 73.9%

5 Withheld 85,644.23 48,000.00 56.0%

Total 562,654.27 250,043.49

As each claim is unique, the particular facts, evidence and potential defences, are taken into consideration in determining and negotiating a settlement amount. 4.1.2. Remaining Unfair Preference Claims The Liquidators attempts to resolve without formal legal proceedings seven (7) potential unfair

preference claims totalling $3.3 million against trade suppliers and statutory creditors, have been

unsuccessful.

Accordingly, the Liquidators’ have instructed K&L Gates to issue formal legal proceedings.

K&L Gates is in the process of finalising an affidavit which will be relied upon by the Liquidators in

support of an originating process against the remaining alleged unfair preference recipients.

The Liquidators are also conducting further analysis regarding additional potential unfair preference

claims against a number of other parties.


8 · FTI Consulting

Insolvent Trading Claim 4.2.

An insolvent trading claim is a claim against the director of a company for allowing a company to incur

debt when it is insolvent. The quantum of the claim is calculated with reference to the debts incurred

from the date that the directors of the Company should have suspected that the company was insolvent

and would not be able to satisfy debts being incurred.

4.2.1. Claim Against the Director

Following extensive analysis of information obtained from the Company’s records, the Liquidators now

consider that Laura Ashley was insolvent from late April 2015 and at all material times from mid-May

2015, there were reasonable grounds for the Director (and a reasonable person in his position) to

suspect that Laura Ashley was insolvent.

Between 15 May 2015 and 7 January 2016, the Liquidators have established that Laura Ashley incurred

$5,061,962 in debts to unsecured creditors for the purposes of section 588G of the Act (“Debts”). This

figure excludes significant claims of a number of creditors that are yet to submit proofs of debt in the

winding up and is likely to increase considerably.

At present, the Liquidators do not anticipate making any distribution to ordinary unsecured creditors in

the winding up of Laura Ashley from available assets, and accordingly:

a) unsecured creditors of the Company have suffered loss and damage of at least $5,061,962 as a consequence of Mr Chait's breaches of section 588G of the Act; and

b) the Liquidators are entitled to recover from Mr Chait as a debt due to Laura Ashley the sum of not less than $5,061,962 together with an amount equivalent to the quantum of any additional debts incurred to creditors of the Company that have not yet submitted proofs in the winding up.

The Liquidators consequently issued a written demand to Mr Chait (“Demand”) on 24 March 2017

seeking payment of a sum equal to the Debts as compensation for the unsecured creditors' loss and

damage arising from Mr Chait's contravention of section 588G of the Act (“Claim”). That demand has

not been satisfied.

The Liquidators have therefore subsequently instructed K&L Gates to commence formal proceedings

against Mr Chait seeking orders under section 588M of the Act. The necessary documents are currently

being finalised by K&L Gates, which includes a comprehensive affidavit incorporating key elements of

the Liquidators’ analysis into the solvency of the Company.

4.2.2. Management Liability Insurance Policy

During the course of the Liquidators’ investigations, the Liquidators identified that the Company held a

Management Liability Insurance Policy (“Policy”) with AIG Australia Limited (“AIG” or “Insurer”).

It is considered that the Policy may respond to an insolvent trading claim. It may also respond to a

breach of duty claim. The Policy provides for a limit for all claims up to $5,000,000.

To elaborate further regarding this matter may prejudice any claim and thus creditors will appreciate

the Liquidators cannot provide any further comment at this stage.


9 · FTI Consulting

Director and Related Party Transactions 4.3. The Liquidators’ consider Related Party Transactions represent unreasonable director related

transactions and are voidable pursuant to section 588FDA of the Act.

4.3.1. Payments to the Director and his Associated Entities

During the period 1 January 2012 to 6 January 2016 (“Relevant Period”), net payments from Company

bank accounts to the Director and associated entities totalled $4,006,896.94 (“Related Party

Transactions”) were made.

4.3.2. The Director’s Remuneration The Liquidator’s investigations indicate net payments made directly to the Director (or for his benefit)

over the Relevant Period totalled $1,904,821.97, including:

$120,000 per annum processed through the Company’s payroll system (i.e. $480,000 in total over

the Relevant Period); and

$1,424,821.97 in other net payments.

There appears to be inconsistencies in the Company’s records regarding the Director’s entitlement to

remuneration across the Relevant Period which may have been either $1,320,300 (per Company letters

detailing his remuneration) or $1,007,401 (per minutes of shareholder meetings).

Regardless of these inconsistencies, the Director received $1,904,821.97 personally from the Company

over the Relevant Period. Associated Entities also received $2,102,074.97.

The Director’s Associated Entities (as beneficiaries of amounts paid by Company during the Relevant

Period) appear to have been solely reliant on funding from the Company in order to remain solvent. As

such (subject to further investigations), the Liquidators’ view is that the remaining Associated Entities

would not have the financial capacity to satisfy any claims.

4.3.3. Jacqueline Chait Ms Jacqueline Chait (the Director’s estranged wife) received regular payments from the Company

throughout the Relevant Period. Ms Chait was not an employee of the Company at any time during the

Relevant Period, nor did she provide any consulting services to the Company during this time.

The Liquidators' investigations identified that in the Relevant Period, the Company:

made payments to Ms Chait or for her benefit totalling $313,700 (“Payments”), $69,000 of which

were made in reduction of loan facility owed by her to Commonwealth Bank of Australia and secured

by a mortgage over her property at 58 Narrawong Road, Caulfield South (“Property”). A caveat was

lodged over the Property to protect the Company’s interest; and

made payments of $64,841.70 to Eleven Degrees South Pty Ltd (“Eleven Degrees”) (a company of

which Daryl Chait is the sole director and shareholder) that were applied in repayment of a chattel

finance mortgage owed to Capital Finance Australia Limited in respect of a BMW E88-12Oi

convertible with registration number YDA397 utilised by Ms Chait.


10 · FTI Consulting

On 26 April 2017, the Liquidators wrote to Ms Chait asserting that the payments made to Ms Chait

cannot have comprised part of Mr Chait’s legitimate entitlement to remuneration and were therefore

voidable as unreasonable director related transactions pursuant to section 588FDA of the Act.

After negotiation, the Liquidators agreed to resolve the matter with Ms Chait for a settlement sum of

$190,000.

Parque Pty Ltd (In Liquidation) (“Parque”) 4.4. Daryl Chait was the sole director and shareholder of Parque, which operated a clothing business known

as FAT. Parque was placed into voluntary administration appointing Messrs David Coyne and James

Koutsoukos of BRI Ferrier as joint and several Administrators (“Administrators”).

On 17 April 2015, the Administrators were appointed as Deed Administrators under a Deed of Company

Arrangement entered into by Parque. The Deed proponent, Eleven Degrees, agreed to contribute

payments amounting to $267,000 to the Deed Fund.

The Liquidators’ investigations indicated Eleven Degrees was not a trading entity and was incorporated

for the sole purpose of facilitating and maintaining the leases on the Director’s, Jacqueline Chait’s and

another former employee’s motor vehicles, to which the Company would make payments for this

purpose. As such, Eleven Degrees sole source of funds was the Company.

Furthermore, the Deed Contributions paid by Eleven Degrees constituted traceable property of the

Company and the Liquidators argued that the funds were effectively held on constructive trust for the

benefit of the Company.

The Liquidators’ identified DOCA contributions by Eleven Degrees totalling $190,000 and notified the

Deed Administrators on 6 June 2016 of the Company’s claim to such funds. At this time, the Deed

Administrators held cash at bank in the DOCA of $137,994. On 28 October 2016, the parties attended a

mediation and the parties agreed to a settlement sum of $90,000 being paid to the Company (received

on 17 November 2016).

L.A. (New Zealand) Pty Ltd (In Liquidation) (“LANZ”) 4.5. Daryl Chait was the sole director of LANZ and the Company was the sole shareholder. LANZ maintained

no head office function in New Zealand and relied solely on Laura Ashley staff for all administrative,

payroll and statutory related tasks. In addition, Laura Ashley acted as the primary source for stock for

LANZ resulting in a loan account between LANZ and the Company.

On 2 June 2016, Messrs. Simon Dalton and Paul Sargison of Gerry Rea Partners were appointed

Administrators of LANZ by resolution of the Director (“LANZ Administrators”).

Upon appointment, the LANZ Administrators immediately closed two (2) stores, transferring the balance

of inventory to the two (2) remaining stores. The LANZ Administrators undertook a brief trade on period

for the two (2) stores in order to maximise realisations of LANZ’s inventory, before closing both stores as

a sale of business of LANZ was not achievable and Laura Ashley UK revoked the license agreement in this

region.

On 4 July 2016, the Liquidators’ submitted a proof of debt of NZD$2,075,636.65 to the LANZ

Administrators in lieu of the significant loan account between the entities.



On 5 July 2016, the LANZ Administrators held a meeting, at which time the LANZ Administrators were

appointed Liquidators by resolution of creditors (“LANZ Liquidators”).

On 23 December 2016, the LANZ Liquidators advised the Liquidators of a dividend in the liquidation of

LANZ with a distribution rate to unsecured creditors of approximately 5 cents in the dollar.

On 23 March 2017, the distribution from the liquidation of LANZ less currency conversion and

transaction costs was received by the Liquidators amounting to $97,307.95.

Conclusion on Investigations 4.6.

There has been a significant amount of work undertaken to investigate the affairs of the Company and

to establish potential claims for both voidable transactions and trading whilst insolvent. This has

resulted in some significant recoveries to date from unfair preference recipients and related entities of

the Company. Further recoveries are expected over the coming months, the details of which are

commercially sensitive.

The Liquidators consider that any meaningful return to unsecured creditors will be highly contingent

upon a successful recovery under the insolvent trading claim, combined with further recoveries of unfair

preferences.

5. LIKELIHOOD OF A DIVIDEND TO UNSECURED CREDITORS

Set out below is an updated schedule showing on high and low cases; potential future recoveries,

estimated realisation costs, known creditor claims and the resultant potential dividend to unsecured

creditors of the Company.

Estimated Outcome Statement Low Case High Case

$'000s $'000s

Cash on Hand at 30 June 2017 606 606

Expected Future Receipts

Potential Legal Recoveries

Unfair Preferences 1 1,320 1,979

Insolvent Trading 2 0 4,000

Total Potential Legal Recoveries 1,320 5,979

Potential Circulating Asset Recoveries

Other Assets 3 8 8 Less: Estimated Professional Fees and Expenses (Current Outstanding and Future)

Liquidation Fees 4 (900) (840)

Legal Fees 5 (350) (200)

Allowance for Professional Disbursements (6) (6)

Net Funds Available from Circulating Assets and Legal Recoveries 677 5,547

Priority Creditor Claims 6 3,710 3,710

Return to Priority Creditors 677 3,710

Estimated Surplus/(Shortfall) Available to Remaining Creditors (3,033) 1,837

Remaining Creditor Claims 7 18,444 18,444

Return to Secured and Unsecured Creditors 0 1,837

Potential Dividend to Remaining Creditors (Cents in $) 0 0.10



Notes to Estimated Outcome Statement

1. The Liquidators refer to section 4.1.2. of this report that highlights seven (7) unsettled preference claims remaining. A high case

estimates 60% of total claims will be recovered and a low case estimates 30% of total claims will be recovered.

2. The Liquidators refer to section 4.2. of this report. The amount recoverable from a claim of trading whilst insolvent is driven by the

Management Liability insurance policy that the Company maintained. In a high case, it is assumed that up to $1 million in costs

incurred by the respondent in defending the claim will be paid from the policy prior to any payment to the Company. In a low case, no

successful recovery is allowed for.

3. The Liquidators refer to section 3, under Note 7 whereby the Company is the owner of 400 Telstra shares and 50,000 Laura Ashley UK

shares.

4. Allowance has been made for current outstanding and anticipated further Liquidators’ fees.

5. Allowance has been made for additional and necessary legal fees to be incurred in order to pursue the voidable transaction and

insolvent trading claims effectively.

6. The Liquidators refer to section 3, under Note 9 which represents total claims from employees.

7. The Liquidators refer to section 3, under Note 10 and Note 11 which represents the total remaining claim of the Bank and all

unsecured creditors.

6. MEETING OF CREDITORS The Liquidators have convened a meeting of creditors for 3:00 PM on 17 October 2017.

By that date, the Liquidators’ Affidavit is expected to have been finalised and formal proceedings on a

number of legal matters issued.

7. STATEMENT OF RECEIPTS AND PAYMENTS

As of 30 June 2017, the Liquidators held approximately $0.6 million in a combination of interest bearing

bank accounts and term deposits.

Please refer to Annexure A for a statement of receipts and payments detailing all transactions in the

liquidation from its commencement on 30 June 2016 to 30 June 2017.

8. LIQUIDATORS’ REMUNERATION

A total of $300,000 has been drawn in respect of Liquidators’ fees throughout the Liquidation to date.

A further $540,496.50 in fees incurred for the period 3 October 2016 to 5 September 2017 will be

requested to be approved by creditors of the Company.

In addition, as interim approval for future fees, creditors will be requested to approve $300,000 in

prospective fees for the period from 6 September 2017 to finalisation of the Liquidation.

Creditors will also be requested to approve $1,000 in internal disbursement costs for the period from

6 September 2017 to finalisation of the Liquidation.



9. ACTS AND DEALINGS TO BE COMPLETED BY THE LIQUIDATORS

The above sets out a summary of the conduct of the liquidation of the Company in the twelve (12)

months to 30 June 2017. Creditors will appreciate that the Liquidators have dealt with numerous

complex issues throughout the liquidation, with further work remaining.

In particular, the Liquidators expect to undertake the following key tasks over the next six month period,

with further and continuing action and steps thereafter:

Continue pursuing recovery of unfair preference claims and other voidable transactions;

Initiating formal proceedings for trading whilst insolvent against the Director together with a claim

under the insurance policy;

Continue to receive and address creditor and employee queries; and

Continue to comply with statutory obligations.

Given the anticipated actions required in prosecuting unfair preference claims and the claim for trading

whilst insolvent, the liquidation is expected to continue for at least a further twelve (12) months.

Should you have any queries in relation to this report please contact Ms Mei Lin Lee of this office.

Yours faithfully

Laura Ashley (Australia) Pty Ltd

(In Liquidation)

Ross Blakeley

Liquidator



ANNEXURE A – Statement of Receipts and Payments for the Period 30 June 2016 to 30 June 2017

Laura Ashley (Australia) Pty Ltd (In Liquidation) Statement of Receipts and Payments for Period 30 June 2016 to 30 June 2017

Total

$

Receipts

Dividend Received - LANZ 97,308

Funds Transferred from Administrators 2,324,847

GST/PAYG Received 168,965

Interest Income 459

Legal Recoveries - Parque 90,000

Preference Recoveries 250,043

Refunds Received 6,291

Sale of Plant and Equipment 13,746

Sale of Forklifts 10,270

Sale of Motor Vehicles 8,014

Sales from Trading 155,838

Total Receipts 3,125,782

Payments

Appointees' Costs (13,823)

Appointees' Fees (808,975)

Auctioneers Fees (1,220)

Bank Charges (5,022)

Dividend to Secured Creditor (675,870)

GST/PAYG Paid (146,420)

Insurance (7,356)

Investigation Expenses (1,540)

Legal Fees (532,659)

Misc. (935)

Payroll Tax Paid (49,480)

Postage (3,396)

Refunds Paid (2,751)

Rent (26,643)

Settlement Adjustment (37,946)

Trading Expenses (66,242)

Wages and Salaries (139,772)

Total Payments (2,520,050)

Net Receipts / (Payments) 605,732

Documents

LAURA ASHLEY (AUSTRALIA) PTY LTD (IN LIQUIDATION) ACN …/media/Files/apac-files/creditors-portal/cip... · This report sets out the Liquidators’ acts and dealings for the ... hardware