BUSINESS FAILURES – AUSTRALIA

Dick Smith put in fire sale bin

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Original article by Kylar Loussikian
The Australian – Page: 15 & 16 : 6-Jan-16

Ferrier Hodgson hopes to sell the Dick Smith consumer electronics business as a going concern, although some analysts question whether there will be much interest in the retailer. Dick Smiths Holdings’ lenders appointed Ferrier Hodgson as receivers after the listed company went into voluntary administration. Dick Smith owes creditors about $A300m, while people who hold gift vouchers will not be able to redeem them.

CORPORATES
DICK SMITH HOLDINGS LIMITED – ASX DSH, FERRIER HODGSON AND COMPANY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, HSBC AUSTRALIA HOLDINGS PTY LTD, PMP LIMITED – ASX PMP, WOOLWORTHS LIMITED – ASX WOW, ANCHORAGE CAPITAL PARTNERS PTY LTD, McGRATH NICOL AND PARTNERS SERVICES PTY LTD, CYAN INVESTMENT MANAGEMENT PTY LTD, IG MARKETS LIMITED, JB HI-FI LIMITED – ASX JBH, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, ALDI STORES SUPERMARKETS PTY LTD, AFFINITY EDUCATION GROUP LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, FORAGER FUNDS MANAGEMENT PTY LTD, DELOITTE TOUCHE TOHMATSU LIMITED, BLACKROCK INCORPORATED, FIDELITY WORLDWIDE INVESTMENT, MYER HOLDINGS LIMITED – ASX MYR, BLOOMBERG LP, THE GOOD GUYS

Dick Smith bankers call in receivers

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Original article by John Durie, Kylar Loussikian
The Australian – Page: 14 & 16 : 5-Jan-16

Dick Smith Holdings went into voluntary administration on 4 January 2016, after the listed consumer electronics retailer’s shares were placed in a trading halt. National Australia Bank and HSBC have also appointed receivers from Ferrier Hodgson to the embattled group. Dick Smith shares were trading at $A0.35 on 31 December 2015, having reached a low of $A0.20 earlier in the month. The company was listed on the sharemarket at $A2.20 in late 2013.

CORPORATES
DICK SMITH HOLDINGS LIMITED – ASX DSH, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, HSBC AUSTRALIA HOLDINGS PTY LTD, FERRIER HODGSON AND COMPANY, LION NATHAN LIMITED, GEORGE WESTON FOODS LIMITED, WILLIAM ROBERTS LAWYERS, MYER HOLDINGS LIMITED – ASX MYR, JB HI-FI LIMITED – ASX JBH, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, FORAGER FUNDS MANAGEMENT PTY LTD, ANCHORAGE CAPITAL PARTNERS PTY LTD, WOOLWORTHS LIMITED – ASX WOW, CREDIT SUISSE (AUSTRALIA) LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Company insolvencies ‘may rise 10pc’

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Original article by Karen Maley
The Australian Financial Review – Page: 27 : 13-Nov-15

Ludovic Subran, the chief economist at credit insurance group Euler Hermes, has warned that the growing incidence of corporate insolvencies in emerging markets will have a flow-on effect globally in 2016. Euler Hermes forecasts that Australia will record five per cent growth in insolvencies during 2016, following an increase of around 10 per cent in 2015. Insolvencies in China are forecast to rise by 25 per cent in 2015 and 20 per cent in 2016.

CORPORATES
EULER HERMES, ALLIANZ AG HOLDING

More mining collapses ‘inevitable’

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Original article by Amanda Saunders
The Australian Financial Review – Page: 18 : 29-Jun-15

KordaMentha’s Scott Langdon expects more Australian mining services groups to experience financial problems in 2015. He says privately-owned firms whose turnover is below $A50m are most vulnerable to insolvency. However, Langdon adds that investors and lenders will seek alternatives to insolvency such as debt restructuring deals. He also forecasts an increase in cost reduction measures in the resources sector, such as staff and wage cuts, as well as the departure of some CEOs.

CORPORATES
KORDA MENTHA AND COLLEAGUES PTY LTD, BRADKEN LIMITED – ASX BKN, BIS INDUSTRIES LIMITED, ATLAS IRON LIMITED – ASX AGO, SIGDO KOPPERS SA, CHAMP PRIVATE EQUITY PTY LTD

Man to Man closes 20 stores, sheds 100 staff

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Original article by Leo Shanahan
The Australian – Page: 16 : 9-Jan-15

Ferrier Hodgson’s Brendan Richards is hopeful that a buyer will emerge for failed menswear retailer Man to Man, with indicative offers due by 9 January 2015. The retail chain will continue to operate 62 stores following the closure of 20 outlets, which will result in the loss of nearly 100 jobs. Man to Man has debts of $A28m, and went into voluntary administration in late 2014

CORPORATES
MAN TO MAN FASHION MENSWEAR, FERRIER HODGSON AND COMPANY, DEUTSCHE BANK AG

Provident ‘the fault of trustees’

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Original article by Kylar Loussikian
The Australian – Page: 17 : 8-Jan-15

A class action suit is being launched by law firm Slater & Gordon on behalf of investors who lost funds in the mid-2012 collapse of Provident Capital. It will be alleged that Australian Executor Trustees was not diligent enough in its supervision of the debentures business, and should have realised in late 2010 that were insufficient reserves to secure the loans written by Provident. The equity ratio in 2008-09 was just 6.43%, compared with the Australian Securities & Investments Commission’s stipulated minimum of 20%

CORPORATES
SLATER AND GORDON LIMITED – ASX SGH, PROVIDENT CAPITAL LIMITED, AUSTRALIAN EXECUTOR TRUSTEES LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN CAPITAL RESERVE LIMITED, FINCORP PTY LTD, MERIDIAN LAWYERS LIMITED

Pie Face hit with third New York lawsuit

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Original article by Eli Greenblat
The Australian – Page: 19 : 18-Dec-14

The landlord of a retail outlet in New York for collapsed Australian fast food chain Pie Face has launched a Supreme Court case to recover $US620,000 ($A760,000), after the company allegedly caused structural damage to the building. This is the third law suit against Pie Face in New York, with another property owner also seeking $US50,000 in outstanding rent charges and a building firm demanding to be paid close to $US120,000 for work at one of the stores

CORPORATES
PIE FACE PTY LTD, SUPREME COURT OF NEW YORK, NEW YORK ENVIRONMENTAL CONTROL BOARD

Plunge claims its first scalp as Red Fork Energy goes under

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Original article by Paul Garvey
The Australian – Page: 19 : 12-Dec-14

Australian-listed oil and gas producer Red Fork Energy has become the first such business to succumb to the effects of the recent global crude oil price fall. Its stock had declined from $A0.38 in late 2013 to just $A0.006 in early December 2014. In mid-2013 the group sourced over $A47m in fresh capital at a price per share of $A0.43, and among the major stockholders to now suffer losses is Ellerston Capital with a stake of 10.9%. Red Fork, which has shale oil and gas assets in the US, cannot service its liabilities of $A100 with Guggenheim Partners

CORPORATES
RED FORK ENERGY LIMITED – ASX RFE, GUGGENHEIM PARTNERS LLC, ELLERSTON CAPITAL PTY LTD, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, ASX LIMITED – ASX ASX

Boss faces insolvent trading probe after transport company collapse

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Original article by Nick Toscano
The Age – Page: 8 : 8-Dec-14

BRI Ferrier has been appointed the liquidator of collapsed freight and warehousing company Gregorys Transport. Its outstanding liabilities are estimated at $A10m, and it has failed to pay the superannuation contributions of 85 staff for a year. Owner Greg Westaway, also an ex-president of the St Kilda club in the Australian Football League, may be charged with trading while insolvent. Among the clients of Gregorys were Coca-Cola Amatil, Schweppes and Bluescope Steel

CORPORATES
GREGORYS TRANSPORT PTY LTD, BRI FERRIER PTY LTD, ST KILDA FOOTBALL CLUB, AUSTRALIAN FOOTBALL LEAGUE, COCA-COLA AMATIL LIMITED – ASX CCL, SCHWEPPES AUSTRALIA PTY LTD, ASAHI BREWERIES LIMITED, BLUESCOPE STEEL LIMITED – ASX BSL, FERRIER HODGSON AND COMPANY

Pie in the sky expansion plans leave investors short

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Original article by Eli Greenblat
The Australian – Page: 20 : 25-Nov-14

Jirsch Sutherland has been appointed voluntary administrator of the collapsed Pie Face fast food outlets chain. It has 78 sites in Australia, and had been pursuing aggressive expansion into overseas markets such as the US before a planned IPO worth about $A150m. In October 2014 the company shut six of its seven stores in New York. There are reports Pie Face sourced close to $A50m over the past four years from high-net worth individuals such as Brazin founder Brett Blundy and US casinos entrepreneur Steve Wynn

CORPORATES
PIE FACE PTY LTD, JIRSCH SUTHERLAND, BRAZIN LIMITED, BB CAPITAL PTY LTD, NM ROTHSCHILD AND SONS (AUSTRALIA) LIMITED, ENERO GROUP LIMITED – ASX EGG, CITIGROUP PTY LTD