TO THE CREDITOR AS ADDRESSED The Rialto, Level 30€¦ · Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389 ‘Grant Thornton’ refers to the brand under which

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‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the

context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each

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another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389

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The Rialto, Level 30 525 Collins Street Melbourne VIC 3000

Correspondence to: GPO Box 4736 Melbourne VIC 3001 T (03) 8320 2222 F (03) 8320 2200 E [email protected] W www.grantthornton.com.au

TO THE CREDITOR AS ADDRESSED 21 July 2014 Dear Sir/Madam

J & B FENCING & GATES PTY LTD (ADMINISTRATORS APPOINTED)

ACN: 102 839 458

SPENELL PTY LTD (ADMINISTRATORS APPOINTED)

ACN: 110 495 504

COLLECTIVELY KNOWN AS “the Companies”

I refer to previous correspondence, in particular, my report to creditors pursuant to Section 439A(4) of the Corporations Act 2001 (‘the Act’) dated 27 June 2014 and the Second Meeting of Creditors (‘Second Meeting’) held on 7 July 2014. Please note that the Second Meeting was adjourned and will reconvene on Monday, 28 July 2014 at 10:00am at the offices of the

Institute of Chartered Accountants in Australia, Level 3, 600 Bourke Street, Melbourne,

Victoria.

I enclose a supplementary Report to Creditors, which includes a notice reconvening the meeting pursuant to Section 439A(3)(a) of the Act.

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 (03) 8320 2200, however, in accordance with Corporations Regulation 5.6.36A, the original signed copy of the Proxy Form must be lodged with my office within 72 hours of lodging the faxed copy.

If you have already registered for the meeting you do not need to lodge another proof of debt form. Proxy forms already submitted for the Second Meeting remain valid. However, if you previously submitted a ‘special proxy’ I ask that you submit a new form as a fee resolution has changed as a consequence of the adjournment.

2

Should you have any queries in relation to the above, please contact Kai Chng of our office on (03) 8320 2200 or [email protected].

Yours faithfully

Stephen Robert Dixon JOINT AND SEVERAL ADMINISTRATOR Enc.

© 2014 Grant Thornton | J & B Fencing & Gates Pty Ltd and Spenell Pty Ltd (Administrators Appointed) | 21 July 2014

J & B Fencing & Gates Pty Ltd (Administrators Appointed)ACN: 102 839 458

Administrators' Supplementary Report to Creditors pursuant to Section 439A of the Act

21 July 2014

Stephen DixonJoint and Several Administrator

T +61 3 8320 2222

E [email protected]

Ahmed BiseAssociate Director

T +61 3 8320 2222

E [email protected]

Kai ChngSenior Accountant

T +61 3 8320 2222

E [email protected]

Spenell Pty Ltd (Administrators Appointed)ACN: 110 495 504

© 2014 Grant Thornton | J & B Fencing & Gates Pty Ltd and Spenell Pty Ltd (Administrators Appointed) | 21 July 2014 2

Contents

Section Page

1. Executive summary 4

2. Progress on the Administration 7

3. Administrators' recommendation 9

4. Remuneration 11

5. Meeting 13

Appendices

A. Notice of Second Meeting of Creditors

B. Formal Proof of Debt Form

C. Proxy Forms

D. Administrators' Remuneration Report


Glossarythe Act Corporations Act 2001

Administrators Stephen Dixon and Laurence Fitzgerald, Voluntary

Administrators of the Companies appointed pursuant to

Part 5.3A of the Corporations Act 2001

the Assets Plant, equipment and motor vehicles owned by the Companies

c. Circa

the Companies J&B Fencing & Gates Pty Ltd (Administrators Appointed) and

Spenell Pty Ltd (Administrators Appointed)

Director Bradley John Killen as the statutory director of the Companies

DOCA Deed of Company Arrangement

Second Meeting Second Concurrent Meeting of Creditors of the Companies

held on 7 July 2014


Section 1 Executive summary

01. Executive summary

02. Progress on the Administration

03. Administrators' recommendation

04. Remuneration

05. Meeting


Executive summary

Overview � This report is a supplementary report to creditors of the Companies in addition to the report prepared pursuant to Section 439A of the

Corporations Act 2001 ("the Act") dated 27 June 2014; and should be read in conjunction with that report.

Purpose of report � At the Second Meeting of the Companies' creditors held concurrently on 7 July 2014 ("Second Meeting"), creditors resolved to adjourn

same for a period of up to 21 days;

� The reasons for the adjournment were as follows:

− To allow for the Administrators to complete the sale of the Companies' business and business assets; and

− To preserve leases pertaining to property, plant and equipment.

� This report provides creditors with:

− Progress on the Administration;

− The Administrators' recommendation to creditors; and

− Details of the Administrators' remuneration and proposed remuneration.

Concurrent Meeting of

creditors

� The Second Meeting of creditors will reconvene on 10:00am, Monday, 28 July 2014 at the Institute of Chartered Accountants in

Australia, located at Level 3, 600 Bourke Street, Melbourne, Victoria. Registration will open 15 minutes beforehand.

� The notice in regard to the Second Meeting is enclosed at Appendix A

� If you choose to attend the Second Meeting and have not as yet registered please forward a Proof of Debt and Proxy Form to my office

by 4:00 pm, Friday, 25 July 2014. Attached to this report is a formal proof of debt form and revised proxy form which should be used in

place of the form supplied under cover of my report dated 27 June 2014. Proxies already submitted remain valid for the reconvened

Second Meeting, however, please submit a new proxy form if appointing a 'special proxy' as a fee resolution has changed as a

consequence of the adjournment.

� At the Second Meeting creditors will be asked to determine the future of the Companies under one of the following options:

− That the Administrations end and control of the Companies be returned to the Director; or

− That the Companies be placed in Liquidation; or

− That the Companies execute a Deed of Company Arrangement ("DOCA").

� My recommendation stated in my report dated 27 June 2014 is unchanged. I recommend that the Companies be placed into liquidation.

Executive summary


Executive summary

Administrators'

recommendation

� My report dated 27 June 2014 included the Administrators' opinions and recommendation as required by Section 439A(4)(b) of the Act;

� As at the date of this report no DOCA proposals have been submitted by the Director of the Companies; and

� Accordingly, I restate my recommendation to creditors that the Companies be placed into Liquidation at the Second Meeting.

Remuneration � The Administrators' remuneration is to be approved by creditors at the Second Meeting.

� A Remuneration Report is enclosed at Appendix D, providing details of work performed to date, estimated remuneration up to the date the Second Meeting is reconvened and estimated remuneration of the Liquidators / Deed Administrators, depending on the creditors'

decision as to the outcome for the Companies.

Executive summary


Section 2 Progress on the Administration




04. Remuneration

05. Meeting


Receipts and Payments

8 May 2014 to 18 July 2014Total

$

Receipts

Drawdowns 178,493.24

Pre appointment cash 1,981.99

Other income 11,594.39

Total receipts 192,069.62

Payments

Wages and salaries 88,509.93

Subcontractors 34,830.84

Motor vehicle expenses 23,038.34

Materials 38,274.28

Miscellaneous 754.70

Bank charges 216.10

Hire and leasing 11,318.17

Office expenses 40.00

Total payments 196,982.36

Net cash receipts (4,912.74)

Progress on the administration

Sale of business and business assets

� In my earlier report, I noted that the Administrators were in detailed negotiations

with Farm 2 Factory Fencing Pty Ltd ("FFF") for the sale of the Companies'

business and business assets;

� At the time of writing this report, the negotiations with FFF remain ongoing and a sale may still proceed in a Liquidation scenario; and

� Should a sale not eventuate, the business assets will be sold by way of auction.

Receipts and payments

� Shown adjacent is a summary of the Administrators' receipts and payments for

the period of the Administration 8 May 2014 to 18 July 2014;

� Trading liabilities incurred during the Administration but not yet paid total approximately $120,000; and

� I await receipt of further recoveries from J&B Fencing & Gates Pty Ltd's debtors

and from the realisation of the Companies' assets.

Progress on the Administration


Section 3 Administrators' recommendation




04. Remuneration

05. Meeting


Administrators' recommendation


3. The Companies be Wound Up (Liquidation)

� Creditors may resolve to wind up the Companies which would result in the

Companies being placed into Liquidation. If creditors do not nominate a

different person to be Liquidator, Laurence Fitzgerald and I, Stephen Dixon will

be taken as having been nominated as Joint and Several Liquidators.

� A more detailed review of the Companies' financial affairs would be conducted

and as a consequence a report on their affairs and the conduct of their officer

would be prepared and the findings conveyed to ASIC.

� Further investigations in relation to voidable transactions and insolvent trading

would be made, as well as a determination to proceed with such claims.

� Upon the collection of all funds, monies would be distributed in accordance with

the provisions of Section 556 of the Act.

� I restate my recommendation that the creditors of the Companies resolve

that the Companies be placed into Liquidation.


The following options are available for creditors to vote on at the Second Meeting

convened pursuant to Section 439A of the Act:

1. The Administration should end

� Creditors may consider ending the Administrations which would return the

Companies to the control of their Director. Ordinarily, the Director would

resume control of the Companies' assets and be able to deal with them as they

deem appropriate.

� It would not be in the creditors' best interest for the Administrations to

end as the Companies are not able to meet their commitments and

therefore require a mechanism to deal with creditors' claims.

2. The Companies execute a Deed Of Company Arrangement

� The provisions of Part 5.3A of the Act allow the Companies and its creditors to

negotiate a proposal to deal with the Companies’ affairs and in such circumstances execute a DOCA.

� A DOCA is a flexible arrangement which is available to Companies in

Administration and is usually proposed by the Directors.

� No DOCA proposal has been submitted to the Administrators for

consideration.

Recommendation:

The Administrators recommend that the Companies be placed into

Liquidation.


Section 4 Remuneration




04. Remuneration

05. Meeting


Remuneration

Remuneration

Remuneration

Enclosed at Appendix D 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 works 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.

Voluntary Administrators' remuneration

The remuneration has been split between actual fees incurred for the period

8 May 2014 and 30 June 2014 and estimated future fees to be incurred for the period 1 July 2014 to 28 July 2014, being the date the Second Meeting is scheduled to

reconvene.

Liquidators' future remuneration

It will be necessary for the creditors to approve the drawing of remuneration for the

Liquidators, should creditors vote that the Companies be placed into liquidation.

Voluntary Administrators' remuneration (excl. GST and disbursements)

DescriptionAmount($)

J & B Fencing - Joint and Several Administrators' remuneration

for the period 8 May 2014 to 30 June 2014

126,040

J & B Fencing - Joint and Several Administrators' estimated

future remuneration for the period 1 July 2014 to 28 July 2014,

being the date of the reconvened Second Meeting.

30,000

Spenell - Joint and Several Administrators' remuneration for the

period 8 May 2014 to 30 June 2014

14,300

Spenell - Joint and Several Administrators' estimated future

remuneration for the period 1 July 2014 to 28 July 2014, being

the date of the reconvened Second Meeting.

5,000

Liquidators' future remuneration (excl. GST and disbursements)

DescriptionAmount($)

J & B Fencing - Joint and Several Liquidators' remuneration for

the period 29 July 2014 to the conclusion of the Liquidation

40,000

Spenell - Joint and Several Liquidators' remuneration for the

period 29 July 2014 to the conclusion of the Liquidation

10,000


Section 5 Meeting




04. Remuneration

05. Meeting


Second meeting of creditors

Meeting

Lodging of proxies (cont'd)

� 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.

Lodging of proofs of debt

Should you not have already lodged a proof of debt, you are required to complete the proof of debt as attached to this report at Appendix B.

Contact details

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

please do not hesitate to contact Kai Chng on (03) 8320 2222.

Yours faithfully

Stephen Dixon

JOINT AND SEVERAL ADMINISTRATOR

Second meeting of creditors

The Second Meeting will reconvene at the offices of The Institute of Chartered

Accountants in Australia, Level 3, 600 Bourke Street, Melbourne, Victoria at 10.00 am on Monday, 28 July 2014. If you have not already registered please arrive 15

minutes before hand to allow sufficient time for registration.

The notice in regard to the Second Meeting is enclosed as Appendix A.

The Second Meeting will be open to creditors for questions and general discussion.

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

Second Meeting. This will allow sufficient time to prepare a detailed response to

your question.

Please note that attendance at the Second Meeting is not compulsory.

Lodging of proxies

Proxies already lodged for the Second Meeting of Creditors remain valid, however

if appointing a 'special proxy' please submit a new proxy to enable voting as there is

an amended resolution for Administrators' remuneration for the period 1 July 2014

to 28 July 2014. Please ensure that the proxies are signed by a director, 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 C.

Proxies for the Second Meeting can be lodged in the following ways:

� Post: to arrive no later than 4:00 pm on the business day prior to the Second

Meeting, being Friday, 25 July 2014;

� Facsimile: to 03 8320 2200 no later than 4:00 pm on the business day prior to

the Second Meeting, being Friday, 25 July 2014;

� In Person: by person with a person attending the Second Meeting; or

� Email: by email to [email protected] no later than 4:00 pm on the business

day prior to the Second Meeting, being Friday, 25 July 2014.


Appendices

A. Notice of second meeting of creditors

B. Formal Proof of Debt form

C. Proxy form



A. Notice of meeting of creditors

Appendices

FORM 529

Corporations Act 2001 Subregulation 5.6.12 (2)

NOTICE RECONVENING THE SECOND MEETING OF CREDITORS OF COMPANY UNDER ADMINISTRATION

J & B Fencing & Gates Pty Ltd (Administrators Appointed)

ACN: 102 839 458


ACN: 110 495 504

Collectively known as “the Companies”

Notice is given that the second meeting of the creditors of the Companies will reconvene at the Institute of Chartered Accountants in Australia, Level 3, 600 Bourke Street, Melbourne, Victoria 3000 at 10:00 AM on 28 July 2014.

AGENDA 1. To consider the Administrators’ report dated 27 June 2014 in relation to the Companies’

affairs and any other matters raised relating to the Companies’ future and then to resolve either that:

(a) the Companies execute a Deed of Company Arrangement; or (b) the Administration should end; or (c) the Companies be wound up; or (d) the meeting be adjourned. 2. To consider and if thought fit approve the Administrators’ remuneration. 3. (a) To determine the remuneration of the Liquidators, if one is appointed; or (b) To determine the remuneration of the Deed Administrators, if one is appointed. 4. If the Companies are wound up, to consider the appointment of a Committee of Inspection.

5. If the Companies are wound up, to consider the destruction of the books and records at the

conclusion of the Winding Up.

6. To discuss any other relevant business which may arise. Dated this 21st day of July 2014

STEPHEN DIXON

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)).

The Rialto, Level 30, 525 Collins Street, Melbourne VIC 3000 Telephone: (03) 8320 2222 Facsimile: (03) 8320 2200


B. Formal Proof of Debt form

Appendices

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

FORM 535 Subregulation 5.6.49(2)

Corporations Act (2001)

FORMAL PROOF OF DEBT OR CLAIM

(GENERAL FORM)

To the Administrators of J & B Fencing & Gates Pty Ltd (Administrators Appointed) / Spenell Pty Ltd (Administrators Appointed) (please cross out the relevant entity)

1. This is to state that the company was on 8 May 2014, 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:


C. Proxy forms

Appendices

FORM 532 Corporations Act 2001

Regulation 5.6.29

J & B Fencing & Gates Pty Ltd (Administrators Appointed) ACN: 102 839 458 (“the Company”)

APPOINTMENT OF PROXY

I/We (1) _____________________________________________________________________________ of

_________________________________________________________________________________________________

a creditor/member of J & B Fencing & Gates Pty 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 28 July 2014 at 10:00 AM or at any adjournment of that meeting. Resolution Type For Against Abstain

a) That the Company execute a Deed of Company Arrangement That the Voluntary Administration should end That the Company be wound up

Ordinary

□ □ □

□ □ □

□ □ □

b) That the remuneration of the Joint and Several Administrators of J & B Fencing & Gates Pty Ltd (Administrators Appointed) and any of the Joint and Several Administrators partners or employees in performance of services performed from 8 May 2014 to 30 June 2014 be fixed at $126,040.00 (excluding GST) plus any out of pocket expenses incurred.

Ordinary □ □ □

c) That the future remuneration of the Joint and Several Administrators of J & B Fencing & Gates Pty Ltd (Administrators Appointed)and any of the Joint and Several Administrators partners or employees in performance of services performed for the period 1 July 2014 to 28 July 2014 be fixed at $30,000.00 (excluding GST) plus any out of pocket expenses incurred.


d) That the future remuneration of the Joint and Several Liquidators of J & B Fencing & Gates Pty Ltd (Administrators Appointed) and any of the Joint and Several Liquidators partners or employees in performance of services performed from 29 July 2014 to the finalisation of the liquidation be fixed at $40,000.00 (excluding GST) plus any out of pocket expenses incurred. Approval is given for such amounts approved to be drawn on a monthly basis.


e) That the Joint and Several Liquidators of J & B Fencing & Gates Pty Ltd (Administrators Appointed) be authorised to destroy the Company’s books and records six months are the date of its deregistration in accordance with Section 542(3) and (4) of the Corporations Act.


DATED this ___________ day of ________________________ 2014

(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 ________________________ 2014

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 4:00 PM on 25 July 2014 to be eligible to vote at the meeting.

RETURN TO: J &B Fencing & Gates Pty Ltd (Administrators Appointed) of care of Grant Thornton Australia Limited Address: GPO Box 4736, Melbourne VIC 3001 , Australia Phone: (03) 8320 2222 Fax: (03) 8320 2200

FORM 532 Corporations Act 2001

Regulation 5.6.29


ACN: 110 495 504 (“the Company”)

APPOINTMENT OF PROXY

I/We (1) _____________________________________________________________________________ of

_________________________________________________________________________________________________

a creditor/member of Spenell Pty 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 28 July 2014 at 10:00 AM or at any adjournment of that meeting. Resolution Type For Against Abstain

a) That the Company execute a Deed of Company Arrangement That the Voluntary Administration should end That the Company be wound up

Ordinary

□ □ □

□ □ □

□ □ □

b) That the remuneration of the Joint and Several Administrators of Spenell Pty Ltd (Administrators Appointed) and any of the Joint and Several Administrators partners or employees in performance of services performed from 8 May 2014 to 30 June 2014 be fixed at $14,300.00 (excluding GST) plus any out of pocket expenses incurred.


c) That the future remuneration of the Joint and Several Administrators of Spenell Pty Ltd (Administrators Appointed) and any of the Joint and Several Administrators partners or employees in performance of services performed for the period 1 July 2014 to 28 July 2014 be fixed at $5,000.00 (excluding GST) plus any out of pocket expenses incurred.


d) That the future remuneration of the Joint and Several Liquidators of Spenell Pty Ltd (Administrators Appointed) and any of the Joint and Several Liquidators partners or employees in performance of services performed from 29 July 2014 to the finalisation of the liquidation be fixed at $10,000.00 (excluding GST) plus any out of pocket expenses incurred. Approval is given for such amounts approved to be drawn on a monthly basis.


e) That the Joint and Several Liquidators of Spenell Pty Ltd (Administrators Appointed) be authorised to destroy the Company’s books and records six months are the date of its deregistration in accordance with Section 542(3) and (4) of the Corporations Act.


DATED this ___________ day of ________________________ 2014

(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 ________________________ 2014

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 4:00 PM on 25 July 2014 to be eligible to vote at the meeting.

RETURN TO: Spenell Pty Ltd (Administrators Appointed) of care of Grant Thornton Australia Limited Address: GPO Box 4736, Melbourne VIC 3001 , Australia Phone: (03) 8320 2222 Fax: (03) 8320 2200



Appendices


Remuneration Request Approval Report Page 1 of 17

Part 1: Declaration

We, Stephen Robert Dixon and Laurence Fitzgerald, of Grant Thornton Australia Limited have undertaken a proper assessment of this remuneration claim for our appointment as Joint and Several Administrators of J & B Fencing & Gates Pty 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 in the conduct of the Administration.

Part 2: Executive Summary

To date, no remuneration has been approved by creditors.

This remuneration report details approval sought for the following fees:

Period Report Reference

Amount (ex GST)

Current remuneration approval sought:

Voluntary Administration Resolution (b): “That the remuneration of the Joint and Several Administrators of J & B Fencing & Gates Pty Ltd (Administrators Appointed) and any of the Joint and Several Administrators partners or employees in performance of services performed from 8 May 2014 to 30 June 2014 be fixed at $126,040.00 (excluding GST) plus any out of pocket expenses incurred.”

Part 3 $126,040.00




Amount (ex GST)

Resolution (c): “That the future remuneration of the Joint and Several Administrators of J & B Fencing & Gates Pty Ltd (Administrators Appointed)and any of the Joint and Several Administrators partners or employees in performance of services performed for the period 1 July 2014 to 28 July 2014 be fixed at $30,000.00 (excluding GST) plus any out of pocket expenses incurred.”

Part 4 $30,000.00

If Creditors resolve to place the Company into Liquidation, the following resolution is to be proposed: Liquidation Resolution (d): “That the future remuneration of the Joint and Several Liquidators of J & B Fencing & Gates Pty Ltd (Administrators Appointed) and any of the Joint and Several Liquidators partners or employees in performance of services performed from 29 July 2014 to the finalisation of the liquidation be fixed at $40,000.00 (excluding GST) plus any out of pocket expenses incurred. Approval is given for such amounts approved to be drawn on a monthly basis.”

Part 5 $40,000.00



Part 3: Description of work completed / to be completed

Company J & B Fencing & Gates Pty Ltd (Administrators Appointed)

Practitioner(s) Stephen Dixon and Laurence Fitzgerald Firm Grant Thornton Australia Limited

Administration Type Voluntary Administration

Period From 8 May 2014 to 30 June 2014

Task Area General Description Includes

Administration 67.2 hours $31,705.00

Document maintenance/file review/checkli135st

Review of file between staff members

Filing of documents and updating checklists

Statutory lodgements and reports

Insurance Identification of potential issues requiring attention of insurance specialists

Correspondence with Blue Broking regarding initial insurance requirements

Reviewing insurance policies

Liaise with Risk Strategies regarding occupational health and safety requirements

Bank account administration

Preparing correspondence opening and closing accounts

Requesting bank statements

Bank account reconciliations

Correspondence with bank regarding specific transfers

Processing payments to trade suppliers

Assets 14.9 hours $6,091.00

Leasing

Reviewing lease documents and contracts

Liaising with owners/lessors

Tasks associated with continuing leases

Assets subject to specific charges

All tasks associated with identifying and corresponding with charge holders

Ongoing liaison with the Bibby Financial Services (“Bibby”) and Harwood Andrews Pty Ltd (“Harwood”)




Plant and Equipment Liaising with Lockwood & Co Pty Ltd regarding valuation of plant and equipment

Analysis of estimated realisable value of plant and equipment

Creditors 73.0 hours $27,736.00

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

Security Interest Claims Notifying all security interest holders of our appointment and request details of their claims

Dealing with proofs of debt

Receipting and filing Proofs of Debt

Maintaining a Proof of Debt register in MYOB

Creditors Reports

Preparing the first report to creditors

Preparing a second report to creditors pursuant to Section 439A of the Corporations Act 2001

Liaising with management regarding financials and other key information of the Company

First Meeting of Creditors

Preparation of 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.

Attendance at the first and second meeting of creditors

Preparation and lodgement of minutes of meetings with ASIC

Respond to stakeholder queries and questions immediately following meeting

Second Meeting of Creditors

Preparation meeting notices, proxies and advertisements


Finalise and send 439A Report to creditors

Employees 11.6 hours

Employee enquiries Receive and follow up employee enquiries on site

Review and prepare correspondence to employee creditors




$4,360.00

Other employee issues

Ongoing correspondence with employees

Correspondence with Child Support

Report as to Affairs Prepare letters to Directors enclosing Report as to Affairs (“RATA”) and Directors’ Questionnaire

Follow up letters to Directors requesting RATA and Directors’ Questionnaire

Investigation 10.3 hours $4,321.00

Preliminary investigations

Reviewing company’s books and records

Prepare background summary of Company history and chronology of events

Conducting and summarising statutory searches

Preparation of comparative financial statements

Meeting and telephone calls with the Director

Review of potential breaches of directors’ duties

Review of an insolvent trading claim Review of voidable transactions

Statutory 2.6 hours $882.00

ASIC forms Preparing and lodging ASIC forms including 505, etc.

ATO & other statutory reporting

Notification of appointment Liaise with the ATO regarding outstanding taxation liabilities

Trade on 129.6 hours $50,945.00

Trade on management

Internal meetings and discussion with respect to day to day operations

Analysing trade on viability

Review of pre-appointment insurance and ensuring appropriate post-appointment insurance cover

Engaged expert review of Occupational Health and Safety (OH&S)

Attendance to and compliance with recommendations from OH&S report

Liaising with management with respect to day to day operations

Authorising purchase orders and essential trade on purchases

Processing trading receipts and payments

Preparation and monitoring of ongoing trading position and cash flow forecasts




Employee, supplier and debtor correspondence

Onsite visits



Summary of Remuneration

Position

$/Hr (excl.

GST)

Total

Hours Hrs $ Hrs $ Hrs $ Hrs $ Hrs $ Hrs $ Hrs $

Partner 630 2.4 2.4 $1,512.00 - - - - - - - - - - - -

Partner 630 16.8 16.8 $10,584.00 - - - - - - - - - - - -

Associate Director 540 56.4 22.1 $11,934.00 3.4 $1,836.00 8.4 $4,536.00 0.4 $216.00 3.0 $1,620.00 19.1 $10,314.00

Senior 370 215.5 15.3 $5,661.00 11.5 $4,255.00 59.9 $22,163.00 11.2 $4,144.00 7.3 $2,701.00 2.1 $777.00 108.2 $40,034.00

Accountant 290 1.6 - - - - 0.7 $203.00 - - - - - - 0.9 $261.00

Graduate 240 4.2 - - - - 2.6 $624.00 - - - - 0.2 $48.00 1.4 $336.00

Administrator 190 0.5 0.5 $95.00 - - - - - - - - - - - -

Administrator 190 10.4 10.1 $1,919.00 - - - - - - - - 0.3 $57.00 - -

Filing Clerk 150 1.4 - - - - 1.4 $210.00 - - - - - - - -

309.2 67.2 $31,705.00 14.9 $6,091.00 73.0 $27,736.00 11.6 $4,360.00 10.3 $4,321.00 2.6 $882.00 129.6 $50,945.00

Peter McCabe $210.00

$126,040.00

Leanne Donaldson $95.00

Robyn Little $1,976.00

Scott Robson $464.00

Patria Lee $1,008.00

Ahmed Bise $30,456.00

Kai Chng $79,735.00

Laurence Fitzgerald $1,512.00

Stephen Dixon $10,584.00

Employees Investigations Statutory Trade On

Employee

Total Cost

excl. GST ($)

Admin Assets Creditors

ARITA Tasks







Period From 1 July 2014 to 28 July 2014



Document maintenance/file review/checklist

Attending to filing of documents

Attending to file reviews and updating checklists




Correspondence Attending to correspondence with various stakeholders and statutory authorities

Discussions regarding the conduct of the Administration


Preparing Business Activity Statements

Preparation of minutes of meeting

ASIC Forms Preparing and lodging ASIC forms including receipts and payments

Correspondence with ASIC regarding statutory forms





Creditor Enquiries Receive and follow up creditor enquiries via telephone

Maintaining creditor enquiry register



Receipting and filing Proofs of Debt when not related to a dividend

Corresponding with ATO regarding Proofs of Debt when not related to a dividend


Attendance at the adjourned and reconvened Second Meeting of Creditors

Finalise and send supplementary 439A Report to creditors





Assets 25.0 hours $10,000.00

Sale of Business and Business Assets

Liaising with purchaser regarding handover of trading of business

Attendance on site for stocktake and review of register of assets

Attendance on site for meeting of employees

Review of contracts of sale of business assets and execution of same

Liaising with legal representatives regarding contracts of sale

Trade On 25.00 hours $10,000.00

Trade on management

Preparation and review of financial reports and weekly financial forecasts


Authorising purchase orders and essential trade on purchases


Employee, supplier and debtor correspondence

Onsite visits



I have applied an average charge-out rate of $400.00/hr in estimating the future costs as persons of various experience will be undertaking the future tasks.

Task Area Estimated Hours Estimated cost ($)

Administration 10.0 4,000.00

Creditors 15.0 6,000.00

Assets 25.0 10,000.00

Trade On 25.0 10,000.00

TOTAL 75.0 30,000.00



Part 5: Description of future work to be completed by the Joint and Several Liquidators



Administration Type Creditors’ Voluntary Liquidation

Period 29 July 2014 to the finalisation of the liquidation


Assets 15.00 hours $6,000.00


All tasks associated with identifying, and corresponding with charge holders

Realisation of Assets

Liaising with Director and staff with respect to sale of business assets

Liaising with lawyers with respect to contract of sale of the business assets

Liaising with purchaser with respect to sale of business assets




Creditor reports / Meetings

Update Report to Creditors and annual general meeting reports

Prepare and hold final meeting of creditors and annual general meetings (if applicable)








Investigations 30.0 hours $12,000.00

Conducting investigations

Interview with Director and management

Collection of company books and records and Report as to Affairs


Review of company nature and history



Review of specific transactions and liaising with Directors regarding certain transactions

Lodgement of investigation with ASIC

Preparation and lodgement of supplementary report if required

Insolvent trading and voidable transaction recoveries

Meetings to discuss potential litigation

Preparation of brief to solicitors and liaising with solicitors regarding recovery actions, where applicable

Attending to potential settlement matters, where applicable

Preparation of insolvency report, if required

Reviewing creditor accounts, statements and invoices

Reviewing director related transactions and corresponding with the directors for explanation of transactions

Examinations (if applicable)

Preparing brief to solicitor

Liaising with solicitor(s) regarding examinations

Attendance at examination

Reviewing examination transcripts

Liaising with solicitor(s) regarding outcome of examinations and further actions available

ASIC reporting Preparing statutory investigation reports

Preparing affidavits seeking non lodgements assistance

Liaising with ASIC






First month, then 6 monthly administration review

Filing of documents

File reviews

Updating checklists

Insurance

Identification of potential issues requiring attention of insurance specialists

Correspondence with Blue Broking regarding any ongoing insurance requirements


Preparing correspondence closing accounts




Finalisation

Notifying ATO of finalisation

Cancelling ABN / GST / PAYG registration

Completing checklists

Finalising WIP

Statutory 10.0 hours $4,000.00

Documents of appointment

Preparation, review and execution of documents

Filing with ASIC

ASIC Form 524 and other forms

Preparing and lodging ASIC forms including 505, 524, etc.



Notification of appointment

Preparing BAS’

Completing PAYG Payment Summaries




Trade On 10.0 hours $4,000.00

Trade on management

Finalisation of financial reports

Attendance on site

Liaising with management and staff

Payment of outstanding trade on liabilities

Processing trading receipts and payments for outstanding accounts

Liaising with superannuation funds regarding contributions

Liaising with state revenue office regarding payroll tax issues

Part 5: Calculation of Remuneration



Assets 15.0 6,000.00

Creditors 20.0 8,000.00

Investigations 30.0 12,000.00


Statutory 10.0 4,000.00

Trade On 10.0 4,000.00

TOTAL 100.00 40,000.00



Disbursements

Disbursements are divided into three types: A, B1, B2.

A disbursements are all externally provided professional services and are recovered at cost. An example of an A disbursement is legal fees.

B1 disbursements are externally provided non-professional costs such as travel, accommodation and search fees. B1 disbursements are recovered at cost.

B2 disbursements are internally provided non-professional costs such as photocopying and document storage. B2 disbursements are charged at cost except for photocopying, printing and telephone calls which are charged at a rate which is intended to recoup both variable and fixed costs.

Resolution Sought

Pursuant to the provisions of the Act we will be seeking the following remuneration resolutions:

b. “That the remuneration of the Joint and Several Administrators of J & B Fencing & Gates Pty Ltd (Administrators Appointed) and any

of the Joint and Several Administrators partners or employees in performance of services performed from 8 May 2014 to 30 June 2014 be fixed at $126,040.00 (excluding GST) plus any out of pocket expenses incurred.”

c. “That the future remuneration of the Joint and Several Administrators of J & B Fencing & Gates Pty Ltd (Administrators Appointed) and any

of the Joint and Several Administrators partners or employees in performance of services performed for the period 1 July 2014 to 28 July 2014 be fixed at $30,000.00 (excluding GST) plus any out of pocket expenses incurred.”

[If at the second meeting the Company’s creditors resolve that the Company be Wound Up in liquidation]

d. “That the future remuneration of the Joint and Several Liquidators of J & B Fencing & Gates Pty Ltd (Administrators Appointed) and any of the Joint and Several Liquidators partners or employees in performance of services performed from 29 July 2014 to the finalisation of the liquidation be fixed at $40,000.00 (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

Remuneration payments received with respect to the Fair Entitlements Guarantee Act 2012 are considered a separate arrangement involving a limited or partial funding agreement. Where higher fees are incurred than the amount covered by a funding agreement, there is no restriction on the Liquidation being charged for the shortfall on the basis that all remuneration claimed is necessary and properly incurred in accordance with the Australian Restructuring Insolvency and Turnaround Association’s Code of Professional Practice.

Schedule of remuneration methods and hourly rates

There are four (4) 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.



Given the nature of this administration we propose that our remuneration be calculated on the time based / hourly rates method. This is because:

• Fixed Fee is not applicable as I am uncertain of the work required to complete this appointment. As such, time based remuneration is more relevant if the appointment is either simpler or more complex than originally expected

• Percentage remuneration is not reasonable as if one substantial asset is easily realised, it will not be fair for creditors if I take a large portion of the asset. Rather, my remuneration should be based on the amount and type of work I complete

• Alternatively, if my staff perform substantial work for minimal realisations, I consider it fair to be paid out of available assets, and

• Contingency remuneration is not applicable as the object of the liquidation, being the orderly winding-up of the company’s affairs, is a certain outcome.

Please find attached a schedule of remuneration method, the method chosen for this remuneration claim and an explanation of the hourly rates.

Queries

Arrangements can be made to inspect the time and costs records which give greater detail of the work performed by contacting Mr Kai Chng of this office. I would appreciate it if this could be done no later than 4:00pm on Friday, 25 July 2014 to allow sufficient time for a review of the information.



Part 1: Declaration

We, Stephen Robert Dixon and Laurence Fitzgerald, of Grant Thornton Australia Limited have undertaken a proper assessment of this remuneration claim for our appointment as Joint and Several Administrators of Spenell Pty 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 in the conduct of the Administration.

Part 2: Executive Summary

To date, no remuneration has been approved by creditors.

This remuneration report details approval sought for the following fees:


Amount (ex GST)

Current remuneration approval sought:

Voluntary Administration Resolution (b): “That the remuneration of the Joint and Several Administrators of Spenell Pty Ltd (Administrators Appointed) and any of the Joint and Several Administrators partners or employees in performance of services performed from 8 May 2014 to 30 June 2014 be fixed at $14,300.00 (excluding GST) plus any out of pocket expenses incurred.”

Part 3 $14,300.00




Amount (ex GST)

Resolution (c): “That the future remuneration of the Joint and Several Administrators of Spenell Pty Ltd (Administrators Appointed) and any of the Joint and Several Administrators partners or employees in performance of services performed for the period 1 July 2014 to 28 July 2014 be fixed at $5,000.00 (excluding GST) plus any out of pocket expenses incurred.”

Part 4 $5,000.00

If Creditors resolve to place the Company into Liquidation, the following resolution is to be proposed: Liquidation Resolution (d): “That the future remuneration of the Joint and Several Liquidators of Spenell Pty Ltd (Administrators Appointed) and any of the Joint and Several Liquidators partners or employees in performance of services performed from 29 July 2014 to the finalisation of the liquidation be fixed at $10,000.00 (excluding GST) plus any out of pocket expenses incurred. Approval is given for such amounts approved to be drawn on a monthly basis.”

Part 5 $10,000.00




Company Spenell Pty Ltd (Administrators Appointed)



Period From 8 May 2014 to 30 June 2014



Document maintenance/file review/checkli135st

Review of file between staff members

Filing of documents and updating checklists

Statutory lodgements and reports

Insurance Identification of potential issues requiring attention of insurance specialists

Correspondence with Blue Broking regarding initial insurance requirements



Preparing correspondence opening and closing accounts



Processing payments to trade suppliers


Leasing Reviewing lease documents and contracts

Liaising with owners/lessors


All tasks associated with identifying and corresponding with charge holders

Plant and Equipment Liaising with Lockwood & Co Pty Ltd regarding valuation of plant and equipment

Analysis of estimated realisable value of plant and equipment





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


Security Interest Claims Notifying all security interest holders of our appointment and request details of their claims


Receipting and filing Proofs of Debt

Maintaining a Proof of Debt register in MYOB

Creditors Reports

Preparing the first report to creditors

Preparing a second report to creditors pursuant to Section 439A of the Corporations Act 2001

Liaising with management regarding financials and other key information of the Company

First Meeting of Creditors




Attendance at the first meeting of creditors




Preparation meeting notices, proxies and advertisements


Finalise and send 439A Report to creditors

Investigation 2.3 hours $1,055.00

Preliminary investigations




Meeting and telephone calls with the Director





ASIC forms Preparing and lodging ASIC forms including 505, etc.

Preparing and lodging Form 524


Notification of appointment Liaise with the ATO regarding outstanding taxation liabilities

Trade on 2.0 hours $978.00

Trade on management

Internal meetings and discussion with respect to day to day operations

Analysing trade on viability

Review of pre-appointment insurance and ensuring appropriate post-appointment insurance cover


Onsite visits



Summary of Remuneration

Position

$/Hr (excl.

GST)

Total

Hours Hrs $ Hrs $ Hrs $ Hrs $ Hrs $ Hrs $

Associate Director 540 13.9 6.8 $3,672.00 1.1 $594.00 3.4 $1,836.00 1.2 $648.00 1.4 $756.00

Senior 370 15.4 2.7 $999.00 1.1 $407.00 7.6 $2,812.00 1.1 $407.00 2.3 $851.00 0.6 $222.00

Accountant 290 0.7 - - - - 0.7 $203.00 - - - - - -

Graduate 240 2.7 - - - - 2.7 $648.00 - - - - - -

Administrator 190 0.5 0.5 $95.00 - - - - - - - - - -

Filing Clerk 150 1.0 - - - - 1.0 $150.00 - - - - - -

34.2 10.0 $4,766.00 2.2 $1,001.00 15.4 $5,649.00 2.3 $1,055.00 2.3 $851.00 2.0 $978.00

Admin Assets Creditors

ARITA Tasks

Investigations Statutory Trade On

Employee

Total Cost

excl. GST ($)

Ahmed Bise $7,506.00

Kai Chng $5,698.00

$150.00

Scott Robson $203.00

Patria Lee $648.00

$14,300.00

Leanne Donaldson $95.00

Peter McCabe







Period From 1 July 2014 to 28 July 2014


Administration 2.0 hours $800.00


Attending to filing of documents

Attending to file reviews and updating checklists




Correspondence Attending to correspondence with various stakeholders and statutory authorities

Discussions regarding the conduct of the Administration


Preparing Business Activity Statements

Preparation of minutes of meeting

ASIC Forms Preparing and lodging ASIC forms including receipts and payments





Creditors 2.0 hours $800.00




Receipting and filing Proofs of Debt when not related to a dividend

Corresponding with ATO regarding Proofs of Debt when not related to a dividend


Attendance at the adjourned and reconvened Second Meeting of Creditors

Finalise and send supplementary 439A Report to creditors






Sale of Business and Business Assets

Liaising with purchaser regarding handover of trading of business

Attendance on site for stocktake and review of register of assets

Attendance on site for meeting of employees

Review of contracts of sale of business assets and execution of same

Liaising with legal representatives regarding contracts of sale

Trade On 1.00 hours $400.00

Trade on management







Administration 2.0 800.00

Creditors 2.0 800.00

Assets 7.5 3,000.00

Trade On 1.0 400.00

TOTAL 25.0 5,000.00



Part 5: Description of future work to be completed by the Joint and Several Liquidators



Administration Type Creditors’ Voluntary Liquidation

Period 29 July 2014 to the finalisation of the liquidation




All tasks associated with identifying, and corresponding with charge holders

Realisation of Assets

Liaising with Director and staff with respect to sale of business assets

Liaising with lawyers with respect to contract of sale of the business assets

Liaising with purchaser with respect to sale of business assets

Creditors 2.0 hours $800.00



Creditor reports / Meetings

Update Report to Creditors and annual general meeting reports

Prepare and hold final meeting of creditors and annual general meetings (if applicable)








Investigations 8.0 hours $3,200.00

Conducting investigations

Interview with Director and management

Collection of company books and records and Report as to Affairs


Review of company nature and history



Review of specific transactions and liaising with Directors regarding certain transactions

Lodgement of investigation with ASIC

Preparation and lodgement of supplementary report if required

Insolvent trading and voidable transaction recoveries

Meetings to discuss potential litigation

Preparation of brief to solicitors and liaising with solicitors regarding recovery actions, where applicable

Attending to potential settlement matters, where applicable

Preparation of insolvency report, if required

Reviewing creditor accounts, statements and invoices

Reviewing director related transactions and corresponding with the directors for explanation of transactions

Examinations (if applicable)

Preparing brief to solicitor

Liaising with solicitor(s) regarding examinations

Attendance at examination

Reviewing examination transcripts

Liaising with solicitor(s) regarding outcome of examinations and further actions available

ASIC reporting Preparing statutory investigation reports

Preparing affidavits seeking non lodgements assistance

Liaising with ASIC






First month, then 6 monthly administration review

Filing of documents

File reviews

Updating checklists

Insurance

Identification of potential issues requiring attention of insurance specialists

Correspondence with Blue Broking regarding initial and ongoing insurance requirements


Correspondence with previous brokers


Preparing correspondence closing accounts




Finalisation

Notifying ATO of finalisation

Cancelling ABN / GST / PAYG registration

Completing checklists

Finalising WIP


Documents of appointment

Preparation, review and execution of documents

Filing with ASIC

ASIC Form 524 and other forms

Preparing and lodging ASIC forms including 505, 524, etc.



Notification of appointment

Preparing BAS’




Trade On 1.0 $400.00

Trade on management

Liaising with management and staff

Payment of outstanding trade on liabilities

Processing trading receipts and payments for outstanding accounts

Part 5: Calculation of Remuneration



Assets 7.0 2,800.00

Creditors 2.0 800.00

Investigations 8.0 3,200.00


Statutory 2.0 800.00

Trade On 1.0 400.00

TOTAL 25.00 10,000.00



Disbursements

Disbursements are divided into three types: A, B1, B2.

A disbursements are all externally provided professional services and are recovered at cost. An example of an A disbursement is legal fees.

B1 disbursements are externally provided non-professional costs such as travel, accommodation and search fees. B1 disbursements are recovered at cost.

B2 disbursements are internally provided non-professional costs such as photocopying and document storage. B2 disbursements are charged at cost except for photocopying, printing and telephone calls which are charged at a rate which is intended to recoup both variable and fixed costs.

Resolution Sought

Pursuant to the provisions of the Act we will be seeking the following remuneration resolutions:

b. “That the remuneration of the Joint and Several Administrators of Spenell Pty Ltd (Administrators Appointed) and any of the Joint and

Several Administrators partners or employees in performance of services performed from 8 May 2014 to 30 June 2014 be fixed at $14,300.00 (excluding GST) plus any out of pocket expenses incurred.”

c. “That the future remuneration of the Joint and Several Administrators of Spenell Pty Ltd (Administrators Appointed) and any of the Joint and

Several Administrators partners or employees in performance of services performed for the period 1 July 2014 to 28 July 2014 be fixed at $5,000.00 (excluding GST) plus any out of pocket expenses incurred.”

[If at the second meeting the Company’s creditors resolve that the Company be Wound Up in liquidation]

d. “That the future remuneration of the Joint and Several Liquidators of Spenell Pty Ltd (Administrators Appointed) and any of the Joint and Several Liquidators partners or employees in performance of services performed from 29 July 2014 to the finalisation of the liquidation be fixed at $10,000.00 (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

Remuneration payments received with respect to the Fair Entitlements Guarantee Act 2012 are considered a separate arrangement involving a limited or partial funding agreement. Where higher fees are incurred than the amount covered by a funding agreement, there is no restriction on the Liquidation being charged for the shortfall on the basis that all remuneration claimed is necessary and properly incurred in accordance with the Australian Restructuring Insolvency and Turnaround Association’s Code of Professional Practice.

Schedule of remuneration methods and hourly rates

There are four (4) 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.



Given the nature of this administration we propose that our remuneration be calculated on the time based / hourly rates method. This is because:

• Fixed Fee is not applicable as I am uncertain of the work required to complete this appointment. As such, time based remuneration is more relevant if the appointment is either simpler or more complex than originally expected

• Percentage remuneration is not reasonable as if one substantial asset is easily realised, it will not be fair for creditors if I take a large portion of the asset. Rather, my remuneration should be based on the amount and type of work I complete

• Alternatively, if my staff perform substantial work for minimal realisations, I consider it fair to be paid out of available assets, and

• Contingency remuneration is not applicable as the object of the liquidation, being the orderly winding-up of the company’s affairs, is a certain outcome.

Please find attached a schedule of remuneration method, the method chosen for this remuneration claim and an explanation of the hourly rates.

Queries

Arrangements can be made to inspect the time and costs records which give greater detail of the work performed by contacting Mr Kai Chng of this office. I would appreciate it if this could be done no later than 4:00pm on Friday, 25 July 2014 to allow sufficient time for a review of the information.