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Correspondence to: Locked Bag Q800 QVB Post Office Sydney NSW 1230 T +61 2 8297 2400 F +61 2 9299 4533 E [email protected] W www.grantthornton.com.au

To the Recipient as Addressed 20 July 2015 Dear Sir/Madam

COFFS HARBOUR DEEP SEA FISHING CLUB LTD (ADMINISTRATORS

APPOINTED) ACN 002 933 922 (“the Company”)

We refer to previous correspondence regarding the above Company and advise that the adjourned Second Meeting of Creditors will be held on Wednesday, 29 July 2015 at 11:00AM pursuant to Section 439A of the Corporations Act 2001 (“the Act”). We enclose for your attention the Administrators’ Supplementary Report to Creditors pursuant to Section 439A of the Act which includes:

• Notice of Meeting;

• Proof of Debt Form; and

• Proxy form. Please note that persons are not entitled to vote as a creditor at the meeting unless they have lodged with the Chairman of the meeting particulars of the debt they claim to be due to them from the Company. Corporate creditors are required to appoint a natural person to vote on their behalf at the meeting of creditors. Proof of debt and Proxy Forms should be lodged with this office prior to the meeting. These forms may be lodged via facsimile on +61 2 9299 4533, however, in accordance with Corporations Regulation 5.6.36A, the original signed copy of the Proxy Form must be lodged with our office within 72 hours of lodging the faxed copy. Copies of this Circular to Creditors including the Notice of Meeting, Proof of Debt, Proxy Form and Section 439A Report to Creditors can also be obtained from www.grantthornton.com.au.

2

Should you have any queries in relation to the above, please contact Richard Woolf of our office on (02) 8297 2478 or [email protected]. Yours faithfully

Andrew Sallway Joint and Several Administrator Enc.

© 2015 Grant Thornton | Coffs Harbour Deep Sea Fishing Club (Administrators Appointed) | 20 July 2015

Coffs Harbour Deep Sea Fishing Club

(Administrators Appointed)

ACN 002 933 922 ("the Company")

Supplementary Report to the Administrators' Section 439A Report

20 July 2015

Andre LakomyAssociate DirectorT +61 2 8297 2540E [email protected]

Andrew SallwayPartnerT +61 2 8297 2532E [email protected]

Key Contacts:

© 2015 Grant Thornton | Coffs Harbour Deep Sea Fishing Club (Administrators Appointed) | 20 July 2015 2

Contents

Section Page

1. Executive Summary 4

2. Introduction 7

3. Estimated Outcome Statement 11

4. Recommendation, Remuneration and Reconvened Meeting 15

Appendices

A. Administrators' Remuneration Report

B. Notice of reconvened second meeting of creditors

C. Proof of Debt form

D. Proxy form


Glossary

The Act Corporations Act 2001

Administrators Andrew Sallway and Said Jahani of Grant Thornton Australia

Ltd, Voluntary Administrators of the Company

ARITA Australian Restructuring Insolvency and Turnaround

Association

ASIC Australian Securities and Investments Commission

ATO Australian Taxation Office

c. Circa

Company/ Club Coffs Harbour Deep Sea Fishing Club Limited (Administrators

Appointed)

Directors William Mabey, Geoffrey Parker, Lee Beckett, Paige Sinclair,

Richard Wilson, Garry Thomas

DIRRI Declaration of Independence, Relevant Relationships and

Indemnities

DOCA Deed of Company Arrangement

EOS Estimate Outcome Statement

FEG Fair Entitlements Guarantee Scheme

GST Goods and Services Tax

ILGA Independent Liquor and Gaming Authority

NAB, Secured

Creditor, or the

Bank

National Australia Bank Limited

OLGR Office of Liquor, Gaming & Racing

p.a. Per Annum

PPSR Personal Property Securities Register

RATA Report as to Affairs

STFG Save the Fisho Group

s439A Report A report on the company's business, property, affairs and

financial circumstances required to be given to creditors

pursuant to Section 439A(4) of the Act

Statutory Priorities The priority for the payment of unsecured creditor claims set

down in Section 553, 560 and 561 of the Act


Section 1 Executive Summary

03. Deed of Company Arrangement Proposal01. Executive Summary

02. Introduction

03. Estimated Outcome Statement

04. Recommendation, Remuneration and Reconvened Meeting


Low ($) High ($)

Employees 54 54

Unsecured creditors - -

Secured Creditor withheld withheld

Liquidation

Executive Summary

Executive Summary

Introduction

Refer to Section 2

� Andrew Sallway and Said Jahani were appointed Joint and Several Administrators of the Company on 21 April 2015.

� The first meeting of creditors was held on Friday, 1 May 2015.

� The second meeting of creditors was held on Tuesday, 26 May 2015. At that meeting creditors resolved to adjourn the meeting for up to 45 business days to allow interested parties to formulate a Deed of Company Arrangement ("DOCA") proposal.

Administrators'

recommendation

� A DOCA is a mechanism for dealing with creditors claims, and if approved by creditors, binds all creditors of the Company arising on or before the date of the appointment of the Administrators, unless otherwise specified.

� Save the Fisho Group ("STFG") submitted a DOCA proposal. However despite the best endeavours of all the major stakeholders including the Secured Creditor, council, employees and the Administrators, the conditions precedent were not able to be satisfied and as a result the DOCA was withdrawn.

� No other DOCA proposal has been submitted to the Administrators.

� Section 439A(4)(b) of the Act requires the Administrators of the Company to prepare a statement setting out their opinion on thefuture options for the Company.

� As the Company is insolvent, ending the Administration is not a viable option for creditors.

� The Administrators recommend that creditors resolve to place the Company into liquidation.

Estimated Return to

Creditors

Refer to Section 3

� Summarised below is the estimated return (cents in the dollar) to creditors in a liquidation scenario:

� The estimated return to employees in a liquidation scenario is subject to a contribution being made by the Department of Education, Employment and Workplace Relations ("DEEWR") that administers the Fair Entitlements Guarantee Scheme ("FEG"). The estimated return reflects the aggregate return for all employees, however it is likely the majority of employees will be paid all their outstanding pre-appointment employee entitlements (excluding superannuation) if a FEG contribution is made.

� It is not expected there will be a return to unsecured creditors.

� The return to the Secured Creditor is dependent upon realisations from non-circulating (i.e. fixed) charge assets – which at this stage is unknown.

� The estimated return to creditors is dependent on a number of factors – this is further discussed in Section 3 of the report. Accordingly, this estimate is subject to change.


Executive Summary

Executive Summary

Remuneration

Refer to Section 4

� The Administrators will be seeking approval from creditors for their remuneration at the forthcoming meeting of creditors.

� A Remuneration Report is enclosed at Appendix A, providing details of work performed to date, estimated future remuneration up to the reconvened second meeting of creditors and estimated remuneration of the Liquidators.

Meeting

Refer to Section 4

� The reconvened second meeting of creditors will be held on Wednesday 29 July 2015 at 11:00am at the Coffs Harbour Deep Sea Fishing Club, Jordan Esplanade, Coffs Harbour NSW 2450. Registration will open 30 minutes prior to the meeting.

� The notice in regards to this meeting is enclosed at Appendix B.

� A Proof of Debt and Proxy Form are enclosed at Appendices C and D and are to be returned to our office by 12:00pm, Tuesday 28 July 2015.


Section 2 Introduction

01. Executive Summary

02. Introduction




Appointment of Administrators

� Andrew Sallway and Said Jahani were appointed Joint and Several Administrators

of the Company under Part 5.3A of the Act on 21 April 2015 by the Directors.

� The purpose of the appointment of an administrator is to allow for an

independent insolvency practitioner to take control of and investigate the affairs of an insolvent company. During that time creditors' claims are put on hold. At

the end of that period we are required to provide creditors with information and

recommendations to assist creditors to decide upon the Company's future.

First Meeting of Creditors

� The first meeting of the Company's creditors was held on Friday, 1 May 2015 at

the Coffs Harbour Deep Sea Fishing Club.

� At this meeting, creditors elected not to form a Committee of Creditors.

� A copy of the minutes of the first meeting of creditors is available on the Australian Securities & Investments Commission ("ASIC") website.

Introduction

Second Meeting of Creditors

� The second meeting of creditors was held on Tuesday, 26 May 2015 at the Coffs

Harbour Deep Sea Fishing Club. That meeting was adjourned for 45 business

days by resolution of creditors and it is to be reconvened on Wednesday, 29 July

2015 at 11:00am. The notice of meeting is attached as Appendix B.

� The purpose of the reconvened second meeting is to consider the

Administrators' report on the Company's business, property, affairs and financial

circumstances and to consider the Administrators’ statement of opinion in

respect of each of the options available to creditors.

� At the meeting, creditors will be required to determine the future of the Company and to resolve one of the following resolutions for the Company:

− That the Administration end; or

− That the Company be wound up.

� The Administrators recommend that creditors of the Company resolve to

place the Company into liquidation.

Appointment and Meetings of Creditors


Report to creditors

Overview

� The purpose of this report is to provide creditors with sufficient information for

them to make an informed decision about the future of the Company, including:

− Background information about the Company;

− Reasons for the Company's failure;

− The results of our investigations;

− The estimated return to creditors; and

− The options available to creditors and our opinion on each of these options.

� In the time available to us, we have undertaken preliminary investigations to

prepare this report and formulate our opinion.

� At the meeting of creditors to be held on Wednesday, 29 July 2015, creditors will

be asked to make a decision by passing a resolution in respect of options available

to them. In this report we have recommended to creditors that the Company be

placed into liquidation and detailed why this option, in our opinion, is in

creditors' best interests.

� The Administrators have relied on information provided from numerous sources

to prepare the report, including:

− Directors of the Company;

− Company's books and records;

− All known creditors (including employees);

− Company's accountant;

− Administrators' legal advisors;

− ASIC and the Personal Properties and Securities Register ("PPSR");

− Various other parties including the local council and the ILGA.

� Whilst we have no reason to doubt the accuracy of any information, we have not

performed an audit and we reserve the right to alter our conclusions, should the

underlying data prove to be inaccurate or change materially from the date of this report.

� In the event that the Company proceeds to liquidation, this report will form the

basis of our further investigations. Provided that funding is available, the

investigations will be more extensive than those undertaken to date.

� Further investigations may be supported by public examinations of the Directors, former directors and others who may be able to provide information about the

Company's examinable affairs as that expression is defined in the Act.

� It is the Administrators' view that this report provides sufficient information to

creditors to allow them to make an informed decision as to the Company's future

and allows the Administrators to make a reasoned and fair recommendation based upon their opinions and the options available to creditors.

Introduction


Compliance, Independence and Communications

Compliance with best practice

� We confirm that this report complies with the statements of best practice issued

by the Australian Restructuring, Insolvency and Turnaround Association

("ARITA"), with regard to content of the Administrators' report and the Code of

Professional Practice with regard to remuneration.

Independence

� As disclosed in our First Notice to Creditors dated 22 April 2015, the

Administrators undertook a proper assessment of the risks in relation to their independence prior to accepting the appointment. Our assessment identified no

real or potential risk to our independence.

� As outlined in our s439A Report to creditors, an updated DIRRI was prepared to

bring to creditors attention an indemnity provided by the Secured Creditor of

$40,000 ($25,000 in time costs and $15,000 in disbursements) in connection with activities around the sale of non-circulating assets.

Disclaimer

� In reviewing this report, creditors should note the following:

− This report is based on information from the books, records and other

information provided by the Directors. Whilst the Administrators have

reviewed the information, there has been no independent verification of the information.

− In considering the options available to creditors and formulating their

recommendations, the Administrators have necessarily made forecasts of asset

realisation and total creditors. These forecasts and estimates may change.

Whilst the forecasts and estimates are the result of the Administrators' best assessments in the circumstances, creditors should note that the outcome for

creditors may differ from the information provided in this report.

− This report is not for general circulation, publication, reproduction or any use

other than to assist creditors in evaluating their position as creditors and must

not be disclosed without the prior approval of the Administrators.

− The Administrators do not assume or accept any responsibility for any liability

or loss sustained by any creditor or any other party as a result of the

circulation, publication, reproduction or any use beyond that permitted above.

− The statements and opinions given in this report are given in good faith and

in the belief that such statements are not false or misleading. Except where otherwise stated, we reserve the right to alter any conclusions reached on the

basis of any changed or additional information which may be provided to us

between the date of this report and the date of the second meeting.

− Neither the Administrators, nor any member or employee thereof are

responsible in any way whatsoever to any person in respect of any errors in this report arising from incorrect information.

− Creditors should seek their own independent legal advice as to their rights and

the options available to them at the meeting of creditors.

Introduction


Section 3 Estimated Outcome Statement


02. Introduction




Note Low ($) High ($)

Non-Circulating Assets

Land and buildings 1 Withheld Withheld

Property, plant and equipment (excl motor vehicle) 2 Withheld Withheld

Motor vehicle 3 11,409 11,409

Intangible assets (Poker Machine Entitlements) 4 Withheld Withheld

Contributions 5 40,000 40,000

Total non-circulating assets Withheld Withheld

Est. Administrator remuneration 6 (120,000) (122,500)

Est. Administrator disbursements (incl. legals, valuation, agents, insurance) 6 (10,000) (10,000)

Est. liquidator remuneration 7 (20,000) (30,000)

Est. liquidator disbursements (incl. legals, valuation, agents, insurance) 7 (40,000) (40,000)

Total cost incurred in realisation of non-circulating assets (190,000) (202,500)

NAB secured debt 8 (2,665,466) (2,665,466)

Non-circulating assets available for distribution - -

Circulating Assets

Cash and cash equivalents 9 43,274 60,384

Trade and other receivables 10 11,805 13,705

Inventories 11 - 4,598

Voidable transactions 12 - 37,800

Liquidators' rights of action 12 Withheld Withheld

Net trading pertormance during Administration 13 (1,964) (1,964)

Total circulating assets 53,116 114,524

Est. Administrator remuneration 6 (120,000) (122,500)

Est. Administrator disbursements (incl. legals, valuation, agents, insurance) 6 (10,000) (15,000)

Est. liquidator remuneration 7 (25,000) (25,000)

Est. liquidator disbursements (incl. legals, valuation, agents, insurance) 7 (10,000) (10,000)

Total costs incurred in realisation of circulating assets (165,000) (172,500)

Circulating assets available for distribution - -

Priority creditor claims (Employee entitlements) 14 (452,392) (497,632)

Circulating assets available for distribution to unsecured creditors - -

Unsecured creditor claims 15 (412,978) (412,978)

Surplus/(Shortfall) to Unsecured Creditors (412,978) (412,978)

Liquidation

Estimated return to creditors

Estimated Outcome Statement

Overview

� A summary of the estimated return to creditors concerning their pre-

appointment claims is provided in the table opposite. Our commentary in

relation to the EOS is provided on the following pages of this report.

� The estimated return to employees in a liquidation scenario is subject to a contribution being made by the DEEWR that administers FEG. It is likely

the majority of employees will be paid all their outstanding pre-appointment

employee entitlements (excluding superannuation) if a FEG contribution is

made.

� FEG does not make a contribution for outstanding pre-appointment superannuation. Based on information provided by the Company pre-

appointment superannuation totals c. $30,000. For the majority of employees

this relates to unpaid superannuation for the period from 1 March 2015 to

the date of appointment.

� The estimated return to creditors is dependent on a number of factors. Accordingly, this estimate is subject to change.

� It is not anticipated that there will be a distribution paid to any

creditors other than the Secured Creditor and priority employees. As

such it is not anticipated there will be a dividend to unsecured

creditors.


Notes to Estimated Outcome Statement


Note Administrators' comments

1. � The written down value of the Company's improvements on the leasehold property pursuant to the depreciation schedule as at 30 June 2014 is c. $1.9 million. In a liquidation scenario it is not anticipated any value will be realised for the leasehold property and associated improvements. However, should any proceeds be realised in relation to the property, these will be made available to the Secured Creditor in accordance with their security.

2. � The Company's plant and equipment primarily comprises the kitchen fit-out, fixtures and fittings, dining facilities in the restaurant / function centre, poker machine equipment, and office equipment. The written down value of the Company's plant and equipment pursuant to the depreciation schedule as at 30 June 2014 is c. $337,000. The Administrators are not in a position at this time to provide an indication of the expected realisation from the sale of the Company's Property, Plant and Equipment as this may prejudice the value realised. Proceeds realised from the sale of Property, Plant and Equipment will however be made available to the Secured Creditor in accordance with their security interest.

3. � Gross sale proceeds realised for the motor vehicle was $11,409 (excluding GST). Net proceeds realised from the sale of the motor vehicle will be made available to the Secured Creditor in accordance with their security.

4. � The Company owns 36 poker machine entitlements. The written down value of these licenses in the depreciation schedule as at 30 June 2014 was c. $590,000. The Administrators have obtained a valuation of the poker machine licences, however the value has been withheld so as not to prejudice the realisations that will be achieved in the liquidation. Any monies received will be made available to the Secured Creditor pursuant to their circulating and non-circulating charge over the Company's assets.

5. � As disclosed in our DIRRI dated 18 May 2015, the Secured Creditor has provided the Administrators with an indemnity of $40,000 (excluding GST) comprising of $25,000 (excluding GST) of remuneration and $15,000 (excluding GST) of disbursements. The indemnity concerns the Administrators activities dealing with the Company's non-circulating security interests.

6. � The estimated total remuneration and disbursements for the period 21 April 2015 to the date of the reconvened second meeting of creditors, being 29 July 2015 is between $240,000 (excl. GST) and $245,000 (excl. GST).

7. � The Administrators estimate that should the Company be placed into liquidation, the total cost (including disbursements) to undertake the winding up would be between $95,000 (excl. GST) and $105,000 (excl. GST). This includes costs such as legal fees, advertising, agency fees, insurance etc.

8. � The total amount due to the Secured Creditor under its non-circulating and circulating charge as at 4 May 2015 was $2,665,466 which is inclusive of pre-appointment wages of $17,502 funded by the Secured Creditor following the appointment of Administrators. Any monies received from the Company's non-circulating (i.e. fixed assets) will firstly be made available to the Bank pursuant their charge registered on the PPSR.

� It is not anticipated there will be any monies available for priority and unsecured creditors from non-circulating assets.

9. � Cash on hand and at bank totalled $100,384. However of this amount $57,110 was retained by the Secured Creditor pursuant to their charge over the Company's assets. We are liaising with the Secured Creditor in respect of credit funds which are subject to the terms of an offset as part of various facility agreements. As such the estimated cash available at the date of appointment is between $43,274 and $60,384.


Notes to Estimated Outcome Statement


Note Administrators' comments

10. � At the date of this report the Administrators have collected debtors totalling $11,805. The Administrators have issued informal demands to all debtors concerning the amounts outstanding.

11. � At the date of appointment the Company held inventory with an estimated book value of $13,964. The majority of inventory was used during the trading period of the Administration. The majority of remaining inventory was collected pursuant to PPSR claims or by suppliers who will provide a refund.

12. � In the case the Company is placed into liquidation, the liquidators will further investigate and finalise their views on the rights of action available to the Company for the benefit of creditors. These would appear to include an insolvent trading action against the Directors and the recovery of unfair preference payments made to certain creditors.

� The recovery in respect of preference payments of $37,800 are from the ATO.

� It may be a costly, lengthy and not necessarily a successful exercise to pursue liquidators rights of action.

� The return to creditors under the liquidation scenario is dependent upon success of such proceedings.

13. � The Administrators ceased trading the business on 27 April 2015 and recorded an estimated net trading loss of $1,964 once supplier accounts are finalised for the administration period.

14. � Based on information provided by the Company, the Administrators estimate pre-appointment employee entitlements will be at least $452,392. This includes a claim by the former manager of the Club for c.$315,000 relating to superannuation, underpaid wages, leave, PILN and redundancy.

� Should the Company be placed into liquidation following the reconvened second meeting of creditors, we will refer priority claims to FEG as there will be insufficient funds to pay all employee entitlements.

� If FEG makes a contribution, the scheme covers outstanding employee entitlements for eligible employees (excluding superannuation), subject to FEG operational arrangements.

15. � The books and records of the Company indicate there were unsecured creditors of $277,540 at the date of appointment. However following the receipt by the Administrators of correspondence from creditors, this amount may be understated due to a number of creditors being excluded from the Company's records, or recorded at lesser amounts. Based on information received to date unsecured creditors may total $412,978.


Section 4 Recommendation, Remuneration and Reconvened Meeting


02. Introduction




Administrators' Recommendation

Recommendation, Remuneration and Reconvened Meeting

Options

� The following options are available to creditors to decide pursuant to s439C of

the Corporations Act, being that:

− The Company execute a DOCA;

− The Administration should end; or

− The Company be wound up.

� Our opinion on each option and the reasons for our opinion are set out in the

following:

a) The Company execute a DOCA

− There is no DOCA proposal available to be considered by creditors.

b) The Administration should end

− Should creditors resolve to end the Administration, the Company would

be placed in a similar position to that which existed prior to our

appointment (i.e. as if the Administration did not occur).

− Given the financial position of the Company, there would be no benefit in returning control of the legal entity to the Directors as creditors would

then have to pursue their usual recovery actions against the Company such

as court actions to obtain judgements, warrants of execution or even

winding up the Company.

− As the Company is insolvent, we do not believe there would be any benefit to creditors in ending the Administration. The return of control of

the Company to the Directors would not be a satisfactory solution for

creditors and is therefore not recommended.

c) The company should be wound up

− In the absence of any DOCA proposal the Administrators recommend

that creditors resolve to wind up the Company which will result in Andrew Sallway and Said Jahani being appointed Joint and Several Liquidators of

the Company.

− A winding-up will allow time for more detailed investigations into the

Company's financial affairs to be conducted and to prepare a report on

their affairs and the conduct of the Company's officers to ASIC.

Administrators' Recommendation

� It is the Administrators' recommendation that creditors resolve to place

the Company into liquidation.


Remuneration


Voluntary Administrators' remuneration

� Retrospective remuneration: At the previous meeting of Creditors held on 26

May 2015 creditors approved the Administrators' remuneration of $20,000 plus

GST and disbursements for the period 17 May 2015 to 26 May 2015. The effect

of the proposed resolution will be to approve the balance of the additional remuneration in the amount of $13,328.50 plus GST and disbursements.

� Retrospective remuneration: At the meeting of creditors the Administrators

will be seeking approval for remuneration for the period 27 May 2015 to 16 July

2015 of $45,777.50 plus GST and disbursements.

� Prospective remuneration: At the meeting of creditors the Administrators will be seeking approval for remuneration for the period from 17 July 2015 to 29 July

2015 (being the date of the reconvened second meeting) in the amount of

$10,000.00 plus GST and disbursements.

Liquidators' future remuneration

� Should creditors vote that the Company be placed into liquidation it will be

necessary for the creditors to approve the drawing of remuneration for the Liquidators.

Voluntary Administrators' remuneration (excl. GST and disbursements)

DescriptionAmount

($)

Joint and Several Administrators remuneration for the period 17 May 2015 to 26 May 2015 (Retrospective remuneration)

$33,328.50

Joint and Several Administrators remuneration for the period 27 May 2015 to 16 July 2015 (Retrospective remuneration)

$45,777.50

Joint and Several Administrators' estimated future remuneration for the period 17 July 2015 to 29 July 2015, being the date of the reconvened second meeting (Prospective remuneration)

$10,000.00

Liquidators' future remuneration (excl. of GST and disbursements)

DescriptionAmount

($)

Joint and Several Liquidators' remuneration for the period from 29 July 2015 to the finalisation of the Liquidation.

$55,000.00

Remuneration

� Enclosed at Appendix A is the Administrators' Remuneration Report, which

provides details of:

− Voluntary Administrators' remuneration to be approved; and

− Liquidators' future remuneration to be approved

� Creditors should note that all work has, and will be, performed by the appropriate level of staff in order to optimise any potential realisations which

may be available to unsecured creditors


� Proxies for the meeting can be lodged in the following ways:

− Post: to arrive no later than 12:00pm on the business day prior to the

meeting, being Tuesday, 28 July 2015.

− Facsimile: to +61 2 9299 4533 no later than 12:00pm on the business day prior to the meeting, being Tuesday, 28 July 2015.

− In Person: by person with a person attending the meeting; or

− Email: by email to [email protected] no later than 12:00pm on the

business day prior to the meeting, being Tuesday, 28 July 2015.

� If proxies are lodged by facsimile or email, the law requires that the original proxy must be lodged with the Voluntary Administrators within 72 hours of lodging the

faxed or emailed copy.

Contact details

� Should you have any queries in relation to any matter raised in this report then

please do not hesitate to contact Richard Woolf on +61 2 8297 2478.

Yours faithfully,

Andrew Sallway

Joint and Several Administrator

Reconvened Second Meeting of Creditors


Reconvened second meeting of creditors

� The reconvened second meetings of creditors is to be held at the Coffs Harbour

Deep Sea Fishing Club, Jordan Esplanade, Coffs Harbour NSW 2450 at 11:00amon Wednesday, 29 July 2015. Please arrive 30 minutes before hand to allow

sufficient time for registration.

� The notice in regards to the meeting is enclosed as Appendix B.

� The meeting will be open to creditors for questions and general discussion.

Should you wish to have us address any issue in detail please advise us prior to

the meeting date. This will allow sufficient time to prepare a detailed response to

your question.

� Please note that attendance at the meeting is not compulsory.

Lodging of proofs of debt

� Should you not have already lodged a proof of debt, you are required to complete

the proof of debt attached as Appendix C.

Lodging of proxies

� Proxies lodged for the previous meeting are not valid for this meeting and

therefore, new proxies need to be lodged to enable voting at the reconvened

meeting. Please ensure that the proxies are signed under seal, where appropriate

(if you are a company) and if the proxy is executed by a power of attorney, that a copy of the power of attorney is enclosed with the proxy form. The proxy form is

enclosed as Appendix D.


Appendices


B. Notice of second meeting of creditors


D. Proxy form



Appendices

© 2015 Grant Thornton | Administrators Remuneration Report | 20 July 2015

Coffs Harbour Deep Sea Fishing Club Ltd

(Administrators Appointed)

ACN 002 933 922 ("the Company")

Administrators' Remuneration Report

20 July 2015

Andrew SallwayPartnerT +61 2 8297 2532E [email protected]

Andre LakomyAssociate DirectorT +61 2 8297 2540E [email protected]

Key Contacts:

© 2015 Grant Thornton | Administrators Remuneration Report | 20 July 2015 2

Contents

Section Page

1. Declaration and Executive Summary 3

2. Description of work completed 5

3. Calculation of remuneration 16

4. Statement of remuneration claim 18

5. Disbursements 20

6. Queries and information sheet 23

Appendices

A. Initial advice to creditors - remuneration

B. Information sheet


Section 1 Declaration and Executive Summary

01. Declaration and Executive Summary

02. Description of work completed

03. Calculation of remuneration

04. Statement of remuneration claim

05. Disbursements

06. Queries and information sheet


Declaration and Executive Summary

Declaration

We, Andrew Sallway and Said Jahani, of Grant Thornton Australia Limited have undertaken a proper assessment of this remuneration claim for our appointment as

Voluntary Administrators, of Coffs Harbour Deep Sea Fishing Club Ltd (Administrators Appointed), in accordance with the law and applicable professional standards.

We are satisfied that the remuneration claimed is in respect of necessary work, properly performed, or to be properly performed, in the conduct of the administration.

Executive Summary

To date, remuneration totalling $155,369.00 (excl. GST) has been approved in this administration. This remuneration report details approval sought for additional

remuneration as per the below resolutions:

Coffs Harbour Deep Sea Fishing Club Ltd (Administrators Appointed)

Remuneration Request Approval Report

Period

Amount

(ex GST)

Past remuneration approved:

21 April 2015 to 17 May 201517 May 2015 to 26 May 2015

Total Remuneration Approved

$135,369.00$20,000.00

$155,369.00

Voluntary Administration

Resolution 1: The remuneration of the Administrators and any of the Administrators' partners or employees in performance of services performedfrom 17 May 2015 to 26 May 2015 to be fixed at $33,328.50 (excluding GST) plus any out of pocket expenses incurred.

$33,328.50

Resolution 2: The remuneration of the Administrators and any of the Administrators' partners or employees in performance of services performedfrom 27 May 2015 to 16 July 2015 to be fixed at $45,777.50 (excluding GST) plus any out of pocket expenses incurred.

$45,777.50

Resolution 3: The remuneration of the Administrators and any of the Administrators' partners or employees in performance of services performedfrom 17 July 2015 to 29 July 2015 to be fixed at $10,000.00 (excluding GST) plus any out of pocket expenses incurred.

$10,000.00

Total additional remuneration – Voluntary Administration $89,106.00

Liquidation (if applicable)*

Resolution 4: The remuneration of the liquidators and any of the liquidators' partners or employees in performance of services performed from 29 July 2015 to the completion of the liquidation, to be fixed at $55,000.00 (excluding GST) plus any out of pocket expenses incurred. Approval is given for such amounts approved to be drawn on a monthly basis.

$55,000.00

* Approval for the future remuneration sought is based on an estimate of the work necessary to the completion of the administration. Should additional work be necessary beyond what is contemplated, further approval may be sought from creditors.


Section 2 Description of work completed





05. Disbursements



Description of work completed


Resolution 1 - from 17 May 2015 to 26 May 2015: The remuneration of the Administrators and any of the Administrators' partners or employees in performance of

services performed from 17 May 2015 to 26 May 2015 to be fixed at $33,328.50 (excluding GST) plus any out of pocket expenses incurred.

N.B. at the previous meeting of Creditors held on 26 May 2015, the Creditors approved the Liquidators' remuneration of $20,000 plus GST and disbursements. The

effect of the proposed resolution will be to fix the balance of the outstanding remuneration in the amount of $13,328.50 plus GST and disbursements.



Company Coffs Harbour Deep Sea Fishing Club Ltd (Administrators Appointed)

Practitioner(s) Andrew Sallway and Said Jahani Firm Grant Thornton Australia Limited

Administration type Voluntary Administration

Period 17 May 2015 to 26 May 2015

Task area General description Includes

Assets(12.4 hours)($5,318.00)

Sale of Business • Liaising with interested parties concerning the sale process and any proposals received

• Preparing an information pack and due diligence materials

• Liaising with interested parties including members

• Liaising with ILGA, OLGR, Council and ClubsNSW concerning the sale processDebtors • Correspondence with debtors

• Reviewing and reconciling debtors ledgers

Creditors(49.6 hours)($17,400.00)

Creditor Enquiries • Receive and follow up creditor enquiries via telephone and email

• Review and prepare correspondence to creditors and their representatives via facsimile, email and post

• Reviewing and responding to queries in relation to the Section 439A report

Creditor reports • Finalising Section 439A report and investigations.

• Distributing Section 439A report to all known creditors

Dealing with proofs of debt • Receipting and filing Proofs of Debt


Administration(17.1 hours)($8,502.50)

Document maintenance/file review/checklist

• Filing of documents

• Updating checklistsInsurance • Correspondence with Blue Broking regarding ongoing insurance requirementsBank account administration • Preparing correspondence regarding opening and closing accounts

• Requesting bank statements

• Bank account reconciliationsFinalisation • Notifying ATO of finalisation

• Cancelling ABN / GST / PAYG registration

• Completing checklists

• Finalising WIP Planning/Review • Discussions regarding status of administration

Statutory(1.8 hours)($336.00)

ASIC Form 524 and other forms • Preparing and lodging ASIC forms including 505, and 5011

• Correspondence with ASIC regarding statutory forms

• Preparing and lodging meeting advert

Total(83.7 hours)($33,328.50)



Meeting of Creditors • Preparing meeting notices, proxies and advertisements

• Forward notice of meeting to all known creditors

• Preparation of meeting file, including agenda, certificate of postage, attendance register, list of creditors, reports to creditors, advertisement of meeting and draft minutes of meeting.

• Responding to stakeholder queries

Employees(2.8 hours)($1,352.00)

Employees enquiry • Receive and follow up employee enquiries via telephone and email

• Review and prepare correspondence to employees and their representatives via facsimile, email and post



$/Hr (excl. GST) Total Hours Hrs $ Hrs $ Hrs $ Hrs Hrs $

650 11.5 9.5 $6,175.00 - - 2.0 $1,300.00 - - -

520 15.1 0.4 $208.00 1.1 $572.00 11.2 $5,824.00 2.4 - -

420 0.5 0.2 $84.00 - - - - - 0.3 $126.00

420 21.4 1.4 $588.00 11.3 $4,746.00 7.2 $3,024.00 - 1.5 $210.00

260 28.3 5.5 $1,430.00 - - 22.4 $5,824.00 0.4 - -

210 6.8 - - - - 6.8 $1,428.00 - - -

175 0.1 0.1 $17.50 - - - - - - -

83.7 17.1 $8,502.50 12.4 $5,318.00 49.6 $17,400.00 2.8 1.8 $336.00

Rachel Hughes EA / PA $17.50 -

$33,328.50 $1,352.00

Richard Woolf Graduate $7,358.00 $104.00

Dale Slater Undergraduate $1,428.00 -

David Trehy Assistant Manager $210.00 -

Jarred Erceg Assistnat Manager $8,988.00 -

Andrew Sallway Partner $7,475.00 -

Andre Lakomy Senior Manager $7,852.00 $1,248.00

Statutory

Employee Position Total Cost excl. GST ($) $

Admin Assets Creditors


Retrospective Remuneration for the period 17 May 2015 to 26 May 2015

IPAA Tasks

Employees




Resolution 2 - from 27 May 2015 to 16 July 2015: The remuneration of the Administrators and any of the Administrators' partners or employees in performance of

services performed from 27 May 2015 to 16 July 2015 to be fixed at $45,777.50 (excluding GST) plus any out of pocket expenses incurred.




Period 27 May 2015 to 16 July 2015


Assets(24.8 hours)($11,778.00)

Sale of Business • Internal meetings to discuss/review offers received

• Liaising with Save the Fisho's Group in relation to a DOCA proposal

• Liaising with legal advisor

• Liaising with Secured Creditor

• Liaising with ILGA, OLGR, Council and ClubsNSW concerning the sale processPlant and Equipment • Reviewing asset listingsDebtors • Collecting and realising outstanding debtorsLeasing • Reviewing lease documents

• Liaising with owners/lessors








• Review and prepare correspondence to creditors and their representatives via facsimile, email and postCreditor reports • Preparing supplementary s439A reportDealing with proofs of debt • Receipting and filing Proofs of Debt Meeting of Creditors • Preparation of meeting notices, proxies and advertisements




PAYG Summaries • Preparing PAYG SummariesCalculation of entitlements • Calculating employee entitlements

• Reviewing employee files and Company’s books and records

• Reviewing superannuation balances

• Liaising with ClubsNSW and legal advisors regarding employee claims






Investigation(1.9 hours)($773.00)

Conducting investigation • Reviewing Company’s books and records

• Preparation of outcome statement

• Review of specific transactions

• Preparation of investigation file




• Updating checklistsInsurance • Identification of potential issues requiring attention of insurance specialists

• Correspondence with Blue Broking regarding ongoing insurance requirements

• Reviewing insurance policiesBank account administration • Preparing correspondence closing accounts


• Bank account reconciliations

• Correspondence with bank regarding specific transfers Planning/Review • Discussions regarding status of administration

Statutory(2.8 hours)($1,262.00)

ASIC Form 524 and other forms • Lodgement of statutory documentsATO & other statutory reporting • Corresponding with ATO, including request for information to assist with voidable transactions

Total(107.2 hours)($45,777.50)



$/Hr (excl. GST) Total Hours Hrs $ Hrs $ Hrs $ Hrs Hrs $ Hrs $

650 10.5 6.0 $3,900.00 4.0 $2,600.00 - - - 0.5 $325.00 - -

560 9.9 - - 2.8 $1,568.00 4.5 $2,520.00 1.7 - - 0.9 $504.00

520 14.7 0.9 $468.00 0.5 $260.00 - - 13.3 - - - -

480 3.0 3.0 $1,440.00 - - - - - - - - -

430 1.5 0.9 $387.00 - - - - 0.6 - - - -

420 3.9 3.4 $1,428.00 - - - - - - - 0.5 $210.00

420 30.0 4.5 $1,890.00 17.5 $7,350.00 6.2 $2,604.00 0.8 - - 1.0 $420.00

320 13.5 1.3 $416.00 - - 10.4 $3,328.00 - 1.4 $448.00 0.4 $128.00

260 17.3 9.2 $2,392.00 - - 7.1 $1,846.00 1.0 - - - -

215 2.9 - - - - 1.3 $279.50 1.6 - - - -

107.2 29.2 $12,321.00 24.8 $11,778.00 29.5 $10,577.50 19.0 1.9 $773.00 2.8 $1,262.00$45,777.50 $9,066.00

Richard Woolf Graduate $4,498.00 $260.00

Dale Slater Undergraduate $623.50 $344.00

Jarred Erceg Assistant Manager $12,600.00 $336.00

Richard Woolf Intermediate $4,320.00 -

David Trehy Assistant Manager $645.00 $258.00

David Trehy Assistant Manager $1,638.00 -

Andre Lakomy Senior Manager $7,644.00 $6,916.00

Jarred Erceg Manager $1,440.00 -


Andre Lakomy Associate Director $5,544.00 $952.00

Employees Investigations Statutory


Admin Assets Creditors


Retrospective Remuneration for the period 27 May 2015 to 16 July 2015

IPAA Tasks



Description of work to be completed

Resolution 2 - from 17 July 2015 to 29 July 2015: The remuneration of the Administrators and any of the Administrators' partners or employees in performance of

services performed from 17 July 2015 to 29 July 2015 to be fixed at $10,000.00 (excluding GST) plus any out of pocket expenses incurred.




Period 17 July 2015 to 29 July 2015


Assets(3.0 hours)($1,680.00)

Sale of Assets • Liaising with interested parties concerning the sale of assetsDebtors • Correspondence with debtors

• Reviewing and reconciling debtors ledgers, and following up outstanding debtors.




• Reviewing and responding to queries in relation to the supplementary s439A ReportCreditor reports • Distributing supplementary s439A Report to all known creditorsDealing with proofs of debt • Receipting and filing Proofs of Debt







• Updating checklistsInsurance • Correspondence with Blue Broking regarding ongoing insurance requirementsBank account administration • Requesting bank statements

• Bank account reconciliationsPlanning/Review • Discussions regarding status of Administration

Statutory(1.0 hours)($320.00)

ASIC Form 524 and other forms • Preparing and lodging meeting advert

Total(26.4 hours)($10,000.00)



Meeting of Creditors • Preparing meeting notices, proxies and advertisements

• Forward notice of meeting to all known creditors


• Responding to stakeholder queries






$/Hr (excl. GST) Total Hours Hrs $ Hrs $ Hrs $ Hrs Hrs $ Hrs $ Hrs $

650 2.0 - - 1.0 650.00 1.0 650.00 - - - - - -

560 6.0 - - 1.0 560.00 2.0 1,120.00 3.0 - - - - -

470 2.0 1.0 470.00 1.0 470.00 - - - - - - - - -

320 9.4 3.0 960.00 - - 5.4 1,720.00 - - - 1.0 320.00 - -

200 7.0 2.0 400.00 - - 2.0 400.00 3.0 - - - - - -

26.4 6.0 $1,830.00 3.0 $1,680.00 10.4 $3,890.00 6.0 0.0 $0.00 1.0 $320.00 0.0 $0.00

Joint and Several Administrators' estimated future remuneration for the period 17 July 2015 to 29 July 2015, being the date of the reconvened second meeting.

$10,000.00 $2,280.00

Richard Woolf Intermediate $3,000.00 -

Dale Slater Undergraduate

Andre Lakomy Associate Director $3,360.00 1,680.00

$1,400.00 600.00

Jarred Erceg Manager $940.00 -

Assets Creditors



Admin Employees Investigations Statutory Trade On


ARITA Tasks



Description of work to be completed

Resolution 4 - from 29 July 2015 to completion of the Liquidation: The remuneration of the Liquidators and any of the Liquidators' partners or employees in

performance of services performed from 29 July 2015 to the completion of the Liquidation, to be fixed at $55,000.00 (excluding GST) plus any out of pocket expenses

incurred. Approval is given for such amounts approved to be drawn on a monthly basis.



Administration type Creditors Voluntary Liquidation

Period 29 July 2015 to completion of the Liquidation


Assets(23.0 hours)($11,140.00)

Sale of Business • Liaising with interested parties concerning the sale of assets

• Transferring ownership of assets as required.



• Review and prepare correspondence to creditors and their representatives via facsimile, email and postCreditor reports • Preparing investigation, meeting and reports to creditors Dealing with proofs of debt • Receipting and filing Proofs of Debt Meeting of Creditors • Preparation meeting notices, proxies and advertisements for final meeting

• Forward notice of final meeting to all known creditors


• Preparation and lodgement minutes of meetings with ASIC

• Responding to stakeholder queries and questions following meeting of creditors









• Preparation of letters to employees advising of their entitlements and options available

• Receive and prepare correspondence in response to employees objections to leave entitlementsFEG • Correspondence with FEG.

• Preparing notification spreadsheet.

• Preparing FEG quotations.

• Preparing FEG distributions.Calculation of entitlements • Calculating employee entitlements

• Reviewing employee files and Company’s books and records

• Reconciling superannuation accounts

Investigation(29.5 hours)($12,600.00)

Conducting investigation • Reviewing Company’s books and records

• Preparation of investigation file

• Lodgement of 533 report with the ASIC

• Preparation and lodgement of supplementary report if required

• Review of insolvent trading claims and antecedent transactions

• Pursue potential claims to seek recovery (if applicable)Potential Examinations • Liaising with legal advisors regarding examinations.

• Attendance at examination.

• Reviewing examination transcripts.

• Liaising with legal advisors regarding outcome of examinations and further actions available.Litigation / Recoveries • Liaising with legal advisors

• Considering merits of proceedings

• Cost benefit analysis of pursuing claims

Dividend(7.0 hours)($2,660.00)

Processing proofs of debt • Preparation of correspondence to potential creditors inviting lodgement of Proofs of Debt

• Receipt of Proofs of Debt

• Maintain Proofs of Debt register

• Adjudicating Proofs of Debt

• Request further information from claimants regarding Proofs of Debt






Dividend Procedures • Preparation of correspondence to creditors advising of intention to declare dividend

• Advertisement of intention to declare dividend

• Preparation of dividend calculation

• Preparation of distribution

• Preparation of dividend file

• Preparation of payment vouchers to pay dividend

• Preparation of correspondence to creditors enclosing payment of dividend



• 6 monthly administration reviews


• File reviews

• Updating checklistsInsurance • Correspondence with Blue Broking regarding ongoing insurance requirementsBank account administration • Closing accounts


• Bank account reconciliations

• Entering receipts and payments into accounting systemFinalisation • Notifying ATO of finalisation

• Cancelling ABN / GST / PAYG registration

• Completing checklists

• Finalising WIP Books and records/ storage • Dealing with records in storage

• Sending job files to storage

Statutory(10.0 hours)($4,250.00)

ASIC Form 524 and other forms • Preparing and lodging ASIC forms including 505, 524, 911 etc

• Correspondence with ASIC regarding statutory forms ATO & other statutory reporting • Notification of appointment

• Preparing BAS’

Total(130.5 hours)($55,000.00)



$/Hr (excl. GST) Total Hours Hrs $ Hrs $ Hrs $ Hrs Hrs $ Hrs $ Hrs $

650 9.0 1.0 650.00 3.0 1,950.00 1.0 650.00 - 1.0 650.00 2.0 1,300.00 1.0 650.00

560 28.0 2.0 1,120.00 6.0 3,360.00 2.0 1,120.00 1.0 9.0 5,040.00 6.0 3,360.00 2.0 1,120.00

470 34.0 4.0 1,880.00 9.0 4,230.00 3.0 1,410.00 2.0 5.0 2,350.00 7.0 3,290.00 4.0 1,880.00

320 46.5 4.0 1,280.00 5.0 1,600.00 5.0 1,600.00 3.0 15.0 4,800.00 14.5 4,650.00 - -

200 13.0 6.0 1,200.00 - - 2.0 400.00 1.0 1.0 200.00 - - 3.0 600.00

130.5 17.0 $6,130.00 23.0 $11,140.00 13.0 $5,180.00 7.0 31.0 $13,040.00 29.5 $12,600.00 10.0 $4,250.00$55,000.00 $2,660.00

Richard Woolf Intermediate $14,890.00 960.00

Dale Slater Undergraduate $2,600.00 200.00

Andre Lakomy Associate Director $15,680.00 560.00

Jarred Erceg Manager $15,980.00 940.00

Creditors


Dividend

ARITA Tasks


Admin Assets Employees Investigations Statutory

Coffs Harbour Deep Sea Fishing Club Ltd (Liquidators Appointed)

Joint and Several Liquidators' remuneration for the period from 29 July 2015 to the finalisation of the Liquidation.


Section 3 Calculation of remuneration





05. Disbursements



Calculation of remuneration

Initial advice to creditors – Remuneration

Please find attached at Appendix A, an Initial Advice to Creditors providing:

• A schedule of remuneration method;

• The method chosen for this remuneration claim;

• An explanation of the hourly rates; and

• Details of disbursements.




Section 4 Statement of remuneration claim





05. Disbursements



Statement of remuneration claim

Statement of Remuneration Claim

Resolution 1

To approve the remuneration of the Administrators and any of the Administrators' partners or employees in performance of services performed from 17 May 2015 to 26

May 2015 to be fixed at $33,328.50 (excluding GST) plus any out of pocket expenses incurred.

Resolution 2

To approve the remuneration of the Administrators and any of the Administrators' partners or employees in performance of services performed from 27 May 2015 to 16

July 2015 to be fixed at $45,777.50 (excluding GST) plus any out of pocket expenses incurred.

Resolution 3

To approve the remuneration of the Administrators and any of the Administrators' partners or employees in performance of services performed from 17 July 2015 to 29

July 2015 to be fixed at $10,000.00 (excluding GST) plus any out of pocket expenses incurred.

Resolution 4

To approve the remuneration of the liquidators and any of the liquidators' partners or employees in performance of services performed from 29 July 2015 to the

completion of the liquidation, to be fixed at $55,000.00 (excluding GST) plus any out of pocket expenses incurred. Approval is given for such amounts approved to be

drawn on a monthly basis.

Remuneration Recoverable from External Sources

Any payments received in relation to the Fair Entitlements Guarantee Act 2012 are considered a separate arrangement involving a limited or partial funding agreement.

We are yet to contact FEG with respect to calculating entitlements or distributing contributions on their behalf as we are yet to receive confirmation as to whether the

Company will be placed into liquidation.

Should the Administrators assist FEG in the distribution of employee entitlements, this will be detailed in future creditor correspondence.




Section 5 Disbursements





05. Disbursements



Disbursements

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 such as travel, accommodation and search fees. These are recovered at cost.

• 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.

We have undertaken a proper assessment of disbursements claimed for the Company in accordance with the law and applicable professional standards. We are satisfied

that the disbursements claimed are necessary and proper.

The following disbursements have been paid by my firm in respect of the Administration for the period from 21 April 2015 to 16 July 2015. Where amounts have been paid to my firm for externally provided services and costs, those payments are in reimbursement of costs previously paid by my firm, either due to a lack of funds in the

Administration at the time the payment was due, or the direct invoicing of my firm by the supplier. All of the following transactions appear in the receipts and payments

listing attached to this report as Appointee Disbursements. Where payments to third parties are paid directly from the Administration bank account, they are only

included in the attached listing of receipts and payments




Disbursements

Basis of disbursement claim

Disbursement paid to date

Total

(Exc. GST)

Externally provided non-professional services

ASIC Advertising/Searches $194.84

Internal disbursements

Postage $2,178.55

Taxi Fares/Travel $1,607.50

Flights $6,454.54

Accommodation $1,947.71

Other (Booking Fees) $253.36

Total $12,636.50




Section 6 Queries and information sheet





05. Disbursements



Queries and information sheet

Queries

Arrangements can be made to inspect the time and costs records which give greater detail of the work performed by contacting Richard Woolf of this office on 02 8297

2478. We would appreciate it if this could be done no later than 2:00pm on 28 July 2015 to allow sufficient time for a review of the information.

Information Sheet

The ASIC Creditors' Information Sheet (INFO 85) that outlines further information regarding the remuneration approval and payment process can be obtained from

the following web address: www.asic.gov.au/insolvencyinfosheets




Appendices

A. Initial Advice to Creditors - RemunerationA. Initial Advice to Creditors - Remuneration

B. Information Sheet


A. Initial Advice to Creditors – Remuneration

Appendices


Appendices

Remuneration Methods

There are four basic methods that can be used to calculate the remuneration charged by an Insolvency Practitioner. They are:

Time based / Hourly rates

This is the most common method. The total fee charged is based on the hourly rate charged for each person who carried out the work multiplied by the number of

hours spent by each person on each of the tasks performed.

Fixed Fee

The total fee charged is normally quoted at the commencement of the administration and is the total cost for the administration. Sometimes a practitioner will

finalise an administration for a fixed fee.

Percentage

The total fee charged is based on a percentage of a particular variable, such as the gross proceeds of assets realisations.

Contingency

The practitioner’s fee is structured to be contingent on a particular outcome being achieved.

Method Chosen

• Given the nature of this administration, we propose that our remuneration be calculated on the time based/hourly rates method. In our opinion, this is the fairest

method for the following reasons:• We will only be paid for work done, subject to sufficient realisations of the Company assets.

• It ensures creditors are only charged for work that is performed. Our time is recorded and charged in six minute increments and staff are allocated to duties according

to their relevant experience and qualifications.• We are required to perform a number of tasks which do not relate to the realisation of assets, e.g. responding to creditor enquiries, reporting to the ASIC, distributing

funds in accordance with the provisions of the Corporations Act 2001.


Appendices

Title Description of title

Hourly rate

(Exc. GST)

(NSW)

Partner Registered Liquidator / Trustee. Partner bringing specialist skills to Administrations and Insolvency matters. Controlling all

matters relating to the assignment.

$650

Associate Director Qualified accountant (CA/CPA) and may be a registered Liquidator/Trustee. Minimum 7/8+ years’ experience. Likely to be

appointed as a director in due course. Highly advanced technical and commercial skills. Planning and control of all

Administration and Insolvency tasks. Controlling substantial matters relating to the assignment and reporting to the appointee.

$560

Senior Manager Qualified accountant (CA/CPA). 7/8+ years’ experience. Well developed technical and commercial skills. Planning and control

of all Administration and Insolvency tasks. Controlling substantial matters relating to the assignment and reporting to the

appointee.

$520

Manager Typically CA/CPA Qualified. 5-8 years’ experience. Well developed technical and commercial skills. Planning and control of

Administration and Insolvency tasks with the assistance of the appointee.

$470

Supervisor / Assistant Manager Typically CA/CPA Qualified. 4+ years’ experience. Co-ordinates planning and control of small to medium Administrations and

Insolvency tasks. Conducts certain aspects of larger Administrations.

$420

Senior Typically CA/CPA Qualified. 3-5 years’ experience. Required to control the fieldwork on Administrations and Insolvency tasks. $380

Intermediate Typically undertaking CA/CPA Qualifications. Up to 3 years’ experience. Required to conduct the fieldwork on smaller

Administrations and Insolvency tasks and assist with fieldwork on medium to large Administrations and Insolvency tasks.

$320

Graduate Typically less than 1 years’ experience. Required to assist with the day to day fieldwork on Administrations and Insolvency tasks

under the supervision of intermediate and senior staff.

$260

Undergraduate Typically less than 1 years’ experience, usually working part time whilst studying a university undergraduate qualification.

Required to assist with the day to day fieldwork on Administrations and Insolvency tasks under the supervision of intermediate

and senior staff.

$200

Secretary Carries out all secretarial functions relating to an Administration. $200

Administrator Conducts all aspects relating to administering the accounts function. $200

Junior Typically a school leaver with limited experience. Provides general administrative support. $140

Explanation of Hourly Rates

The rates for our remuneration calculation are set out in the following table together with a general guide showing the qualifications and experience of staff engaged in

the administration and the role they take in the administration. The hourly rates charged encompass the total cost of providing professional services and should not be

compared to an hourly wage.


B. Information Sheet

Appendices

Important note: This information sheet contains a summary of basic information on the topic. It is not

INFORMATION SHEET 85

Approving fees: a guide for creditorsIf a company is in financial difficulty, it can be put under the control of an independent external administrator.

This information sheet gives general information for creditors on the approval of an external administrator’s fees in a liquidation of an insolvent company, voluntary administration or deed of company arrangement (other forms of external administration are not discussed in this information sheet). It outlines the rights that creditors have in the approval process.

Entitlement to fees and costs A liquidator, voluntary administrator or deed administrator (i.e. an ‘external administrator’) is entitled to be:

paid reasonable fees, or remuneration, for the work they perform, once these fees have been approved by a creditors’ committee, creditors or a court, and

reimbursed for out-of-pocket costs incurred in performing their role (these costs do not need creditors’ committee, creditor or court approval).

External administrators are only entitled to an amount of fees that is reasonable for the work that they and their staff properly perform in the external administration. What is reasonable will depend on the type of external administration and the issues that need to be resolved. Some are straightforward, while others are more complex.

External administrators must undertake some tasks that may not directly benefit creditors. These include reporting potential breaches of the law and lodging a detailed listing of receipts and payments with ASIC every six months. The external administrator is entitled to be paid for completing these statutory tasks.

For more on the tasks involved, see ASIC’s information sheets INFO 45 Liquidation: a guide for

creditors and INFO 74 Voluntary administration: a guide for creditors.

Out-of-pocket costs that are commonly reimbursed include:

a substitute for legal advice. Some provisions of the law referred to may have important exceptions or qualifications. This document may not contain all of the information about the law or the exceptions and qualifications that are relevant to your circumstances. You will need a qualified professional adviser to take into account your particular circumstances and to tell you how the law applies to you.

© Australian Securities & Investments Commission, December 2008 Page 1 of 5

APPROVING FEES: A GUIDE FOR CREDITORS

legal fees

valuer’s, real estate agent’s and auctioneer’s fees

stationery, photocopying, telephone and postage costs

retrieval costs for recovering the company’s computer records, and

storage costs for the company’s books and records.

Creditors have a direct interest in the level of fees and costs, as the external administrator will, generally, be paid from the company’s available assets before any payments to creditors. If there are not enough assets, the external administrator may have arranged for a third party to pay any shortfall. As a creditor, you should receive details of such an arrangement. If there are not enough assets to pay the fees and costs, and there is no third party payment arrangement, any shortfall is not paid.

Who may approve fees Who may approve fees depends on the type of external administration: see Table 1. The external administrator must provide sufficient information to enable the relevant decision-making body to assess whether the fees are reasonable.

Table 1: Who may approve fees

Creditors’committee

Creditors Court

Administrator in a voluntary administration

1

Administrator of a deed of company arrangement

1

Creditors’ voluntary liquidator

1 5 3

Court-appointed liquidator 1 4, 5 2

1 If there is one. 2 If there is no approval by the committee or the creditors. 3 Unless an application is made for a fee review. 4 If there is no creditors’ committee or the committee fails to approve the fees.5 If insufficient creditors turn up to the meeting called by the liquidator to approve fees, the liquidator is entitled to be paid

up to a maximum of $5000, or more if specified in the Corporations Regulations 2001.

Creditors’ committee approval

If there is a creditors’ committee, members are chosen by a vote of creditors as a whole. In approving the fees, the members represent the interests of all the creditors, not just their own individual interests.

There is not a creditors’ committee in every external administration. A creditors’ committee makes its decision by a majority in number of its members present at a meeting, but it can only act if a majority of its members attend.

To find out more about creditors’ committees and how they are formed, see ASIC’s information sheets INFO 45 Liquidation: a guide for creditors, INFO 74 Voluntary administration: a guide for creditors

and INFO 41 Insolvency: a glossary of terms.

Creditors’ approval

Creditors approve fees by passing a resolution at a creditors’ meeting. Unless creditors call for a poll, the resolution is passed if a simple majority of creditors present and voting, in person or by proxy,

© Australian Securities & Investments Commission, December 2008 Visit our website: www.asic.gov.au

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indicate that they agree to the resolution. Unlike where acting as committee members, creditors may vote according to their individual interests.

If a poll is taken, rather than a vote being decided on the voices or by a show of hands, a majority in number and value of creditors present and voting must agree. A poll requires the votes of each creditor to be recorded.

A separate resolution of creditors is required for approving fees for an administrator in a voluntary administration and an administrator of a deed of company arrangement, even if the administrator is the same person in both administrations.

A proxy is where a creditor appoints someone else to represent them at a creditors’ meeting and to vote on their behalf. A proxy can be either a general proxy or a special proxy. A general proxy allows the person holding the proxy to vote as they wish on a resolution, while a special proxy directs the proxy holder to vote in a particular way.

A creditor will sometimes appoint the external administrator as a proxy to vote on the creditor’s behalf. An external administrator, their partners or staff must not use a general proxy to vote on approval of their fees; they must hold a special proxy in order to do this. They must vote all special proxies as directed, even those against approval of their fees.

Calculation of fees Fees may be calculated using one of a number of different methods, such as:

on the basis of time spent by the external administrator and their staff

a quoted fixed fee, based on an upfront estimate, or

a percentage of asset realisations.

Charging on a time basis is the most common method. External administrators have a scale of hourly rates, with different rates for each category of staff working on the external administration, including the external administrator.

If the external administrator intends to charge on a time basis, you should receive a copy of these hourly rates soon after their appointment and before you are asked to approve the fees.

The external administrator and their staff will record the time taken for the various tasks involved, and a record will be kept of the nature of the work performed.

It is important to note that the hourly rates do not represent an hourly wage for the external administrator and their staff. The external administrator is running a business—an insolvency practice—and the hourly rates will be based on the cost of running the business, including overheads such as rent for business premises, utilities, wages and superannuation for staff who are not charged out at an hourly rate (such as personal assistants), information technology support, office equipment and supplies, insurances, taxes, and a profit.

External administrators are professionals who are required to have qualifications and experience, be independent and maintain up-to-date skills. Many of the costs of running an insolvency practice are fixed costs that must be paid, even if there are insufficient assets available to pay the external administrator for their services. External administrators compete for work and their rates should reflect this.

These are all matters that committee members or creditors should be aware of when considering the fees presented. However, regardless of these matters, creditors have a right to question the external administrator about the fees and whether the rates are negotiable.

It is up to the external administrator to justify why the method chosen for calculating fees is an appropriate method for the particular external administration. As a creditor, you also have a right to question the external administrator about the calculation method used and how the calculation was made.


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Report on proposed fees When seeking approval of fees, the external administrator must send committee members/creditors a report with the notice of meeting setting out:

information that will enable the committee members/creditors to make an informed assessment of whether the proposed fees are reasonable

a summary description of the major tasks performed, or to be performed, and

the costs associated with each of these tasks.

Committee members/creditors may be asked to approve fees for work already performed or based on an estimate of work yet to be carried out.

If the work is yet to be carried out, it is advisable to set a maximum limit (‘cap’) on the amount that the external administrator may receive. For example, future fees calculated according to time spent may be approved on the basis of the number of hours worked at the rates charged (as set out in the provided rate scale) up to a cap of $X. If the work involved then exceeds this figure, the external administrator will have to ask the creditors’ committee/creditors to approve a further amount of fees, after accounting for the fees already incurred.

Deciding if fees are reasonable If asked to approve an amount of fees either as a committee member or by resolution at a creditors’ meeting, your task is to decide if that amount of fees is reasonable, given the work carried out in the external administration and the results of that work.

You may find the following information from the external administrator useful in deciding if the fees claimed are reasonable:

the method used to calculate fees

the major tasks that have been performed, or are likely to be performed, for the fees

the fees/estimated fees (as applicable) for each of the major tasks

the size and complexity (or otherwise) of the external administration

the amount of fees (if any) that have previously been approved

if the fees are calculated, in whole or in part, on a time basis:

o the period over which the work was, or is likely to be performed

o if the fees are for work that has already been carried out, the time spent by each level of staff on each of the major tasks

o if the fees are for work that is yet to be carried out, whether the fees are capped.

If you need more information about fees than is provided in the external administrator’s report, you should let them know before the meeting at which fees will be voted on.

What can you do if you think the fees are not reasonable?

If you do not think the fees being claimed are reasonable, you should raise your concerns with the external administrator. It is your decision whether to vote in favour of, or against, a resolution to approve fees.

Generally, if fees are approved by a creditors’ committee/creditors and you wish to challenge this decision, you may apply to the court and ask the court to review the fees. Special rules apply to court liquidations.

You may wish to seek your own legal advice if you are considering applying for a court review of the fees.


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Reimbursement of out-of-pocket costs An external administrator should be very careful incurring costs that must be paid from the external administration—as careful as if they were dealing with their own money. Their report on fees should also include information on the out-of-pocket costs of the external administration.

If you have questions about any of these costs, you should ask the external administrator and, if necessary, bring it up at a creditors’ committee/creditors’ meeting. If you are still concerned, you have the right to ask the court to review the costs.

Queries and complaints You should first raise any queries or complaints with the external administrator. If this fails to resolve your concerns, including any concerns about their conduct, you can lodge a complaint with ASIC at www.asic.gov.au/complain, or write to:

ASIC Complaints PO Box 9149 TRARALGON VIC 3844

ASIC will usually not become involved in matters of commercial judgement by an external administrator. Complaints against companies and their officers can also be made to ASIC. For other enquiries, email ASIC through [email protected], or call ASIC’s Infoline on 1300 300 630 for the cost of a local call.

To find out more For an explanation of terms used in this information sheet, see ASIC’s information sheet INFO 41 Insolvency: a glossary of terms. For more on external administration, see ASIC’s related information sheets at www.asic.gov.au/insolvencyinfosheets:

INFO 74 Voluntary administration: a guide for creditors

INFO 75 Voluntary administration: a guide for employees

INFO 45 Liquidation: a guide for creditors

INFO 46 Liquidation: a guide for employees

INFO 54 Receivership: a guide for creditors

INFO 55 Receivership: a guide for employees

INFO 43 Insolvency: a guide for shareholders

INFO 42 Insolvency: a guide for directors

INFO 84 Independence of external administrators: a guide for creditors

These are also available from the Insolvency Practitioners Association (IPA) website at www.ipaa.com.au. The IPA website also contains the IPA’s Code of Professional Practice for Insolvency Professionals, which applies to IPA members.


B. Notice of meeting of creditors

Appendices

FORM 529

Corporations Act 2001

Subregulation 5.6.12 (2)

NOTICE OF RECONVENED SECOND MEETING OF

CREDITORS OF COMPANY UNDER ADMINISTRATION

Coffs Harbour Deep Sea Fishing Club (Administrators Appointed)

ACN: 002 933 922

(“the Company”) Notice is given that a second meeting of the creditors of the Company will be held at the Coffs Harbour Deep Sea Fishing Club, Jordan Esplanade, Coffs Harbour NSW 2450 at 11:00 AM on 29 July 2015.

AGENDA 1. To consider the Administrators’ report in relation to the Company’s affairs and any other matters

raised relating to the Company’s future and then to resolve either that: (a) the administration should end; or (b) the Company be wound up. 2. To consider and if thought fit approve the Administrators’ remuneration. 3. To determine the remuneration of the Liquidator, if one is appointed. 4. If the Company is wound up, to consider the appointment of a Committee of Inspection. 5. If the Company is wound up, the Liquidator be permitted to apply to the Australian Securities

and Investments Commission for approval to destroy the books and records of the Company six months following deregistration of the Company.

6. To discuss any other relevant business which may arise. Dated 20 July 2015.

ANDREW SALLWAY JOINT AND SEVERAL ADMINISTRATOR Note:

Under the Corporations Regulations, a creditor is not entitled to vote at a meeting unless:

• his/her claim has been admitted, wholly or in part, by the administrator; or

• he/she has lodged with the administrator particulars of the debt or claim (regulation 5.6.23). Furthermore proxies must be made available to the administrator.

A secured creditor may vote for the whole of his debt without deduction for his/her security (reg 5.6.24(4)).

Level 17, 383 Kent Street, Sydney NSW 2000 Telephone: +61 2 8297 2400 Facsimile: +61 2 9299 4533



Appendices

*Do not complete if this proof is made by the creditor personally.

ACN 002 933 922

FORM 535 Subregulation 5.6.49(2)

Corporations Act (2001)

FORMAL PROOF OF DEBT OR CLAIM

(GENERAL FORM)

To the Administrators of Coffs Harbour Deep Sea Fishing Club Ltd (Administrators Appointed)

1. This is to state that the company was on 21 April 2015 (date of court order in winding up by the

Court, or date of resolution to wind up, if a voluntary winding up), and still is, justly and truly indebted to:

_________________________________________________________ (full name and address of the creditor and, if applicable, the creditor's partners. If prepared by

an employee or agent of the creditor, also insert a description of the occupation of the creditor)

for $_______________and______cents.

Date Consideration (state how the Debt arose)

Amount $ 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 $c Due Date

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

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

Proof of Debt Reference:


D. Proxy form

Appendices

FORM 532

Corporations Act 2001

Regulation 5.6.29


ACN: 002 933 922 (the Company)

APPOINTMENT OF PROXY

I/We (1) _____________________________________________________________________________ of

_________________________________________________________________________________________________

a creditor/member of Coffs Harbour Deep Sea Fishing Club Ltd (Administrators Appointed) appoint

(2)_____________________________________________ or in his/her absence

(3) _____________________________________________as my/our general/special proxy to vote at the meeting of creditors to be held on 29 July 2015 at 11:00 AM or at any adjournment of that meeting. Resolution Type For Against Abstain

The Remuneration of the Administrators and any of the Administrators' partners or employees in performance of services performed from 17 May 2015 to 26 May 2015 to be fixed at $33,328.50 (excluding GST) plus any out of pocket expenses incurred. (N.B. at the previous meeting of Creditors held on 26 May 2015, the Creditors approved the Administrators remuneration of $20,000 plus GST and disbursements. The effect of the proposed resolution will be to fix the balance of the outstanding remuneration in the amount of $13,328.50 plus GST and disbursements).

Special □ □ □

The Remuneration of the Administrators and any of the Administrators' partners or employees in performance of services performed from 27 May 2015 to 16 July 2015 to be fixed at $45,777.50 (excluding GST) plus any out of pocket expenses incurred.

Special □ □ □

The remuneration of the Administrators and any of the Administrators' partners or employees in performance of services performed from 17 July 2015 to 29 July 2015 to be fixed at $10,000.00 (excluding GST) plus any out of pocket expenses incurred.

Special □ □ □

That the Administration should end. Special □ □ □ That the Company be wound up. Special □ □ □ The remuneration of the Liquidators and any of the Liquidators' partners or employees in performance of services performed from 29 July 2015 to the completion of the Liquidation, to be fixed at $55,000.00 (excluding GST) plus any out of pocket expenses incurred. Approval is given for such amounts approved to be drawn on a monthly basis.

Special □ □ □

That should the Company be wound up to consider appointing a Committee of Inspection.

Special □ □ □

If no Committee of Inspection is appointed and the Company is wound up, the Liquidator be permitted to apply to the Australian Securities and Investments Commission for approval to destroy the books and records of the Company six (6) months following deregistration of the Company.

Special □ □ □

DATED this ___________ day of ________________________ 2015

(4) Signature _______________________________________________

CERTIFICATE OF WITNESS - only complete if the person given the proxy is blind or incapable of writing.

I, ____________________________________________ of _______________________________________________

certify that the above instrument appointing a proxy was completed by me in the presence of and at the request of the person appointing the proxy and read to him before he attached his signature or mark to the instrument.

DATED this ___________ day of ________________________ 20

Signature of witness ___________________________________

Description ___________________________________

Place of residence ___________________________________

___________________________________

Notes:

(1) If a firm strike out ‘I’ and set out the full name of the firm.

(2) Insert the name of the person appointed.

(3) If a special proxy, ‘add the words ‘to vote for’ or the words ‘to vote against’ and specify the particular resolution’.

(4) If the creditor is a sole trader , sign in accordance with the following example: ‘A.B., proprietor’.

If the creditor is a partnership, sign in accordance with the following example: ‘A.B., a partner of the said firm.’

If the creditor is a company, then the form of proxy must be under its Common Seal or under the hand of some officer duly authorised in that capacity, and the fact that the officer is so authorised must be stated in accordance with the following example: ‘for the company, A.B.’ (duly authorised under the Seal of the Company).

Proxy forms should have been completed and returned by no later than 12:00 PM on 28 July 2015 to be eligible to vote at the meeting.

RETURN TO: Coffs Harbour Deep Sea Fishing Club Ltd (Administrators Appointed) of care of Grant Thornton Australia Limited Address: Locked Bag Q800, QVB Post Office, Sydney NSW 1230 Phone: +61 2 8297 2400 Fax: +61 2 9299 4533

Documents

Level 17 Sydney NSW 2000 - Grant Thornton Australia · Letter\Circular To Creditors Calling Second Meeting Of Creditors_20150515_15_24.Docx Level 17 383 Kent Street Sydney NSW 2000