BUSINESS FAILURES – AUSTRALIA

No charges, but watchdog takes civil action after LM property collapse

roymorgansocial Leave a comment

Original article by Ben Butler, Roseanne Barrett
The Australian – Page: 19 : 21-Nov-14

The Australian Securities & Investments Commission (ASIC) is bringing a civil action against real estate investor Peter Drake, but it will not pursue criminal charges. His LM fund management firm raised $A800m-plus from small retail shareholders before failing in 2013. The watchdog alleges that Drake channelled $A26m to personal spending, and that director’s duties were breached in approving the loans by LM’s Francene Mulder, Eghard van der Hoven, Simon Jeremy Tickner and Lisa Maree Darcy

CORPORATES
LM INVESTMENT MANAGEMENT LIMITED, LM ADMINISTRATION PTY LTD, LM MANAGED PERFORMANCE FUND, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MADDISON ESTATE PTY LTD, FEDERAL COURT OF AUSTRALIA, AUSTRALIA. DIRECTOR OF PUBLIC PROSECUTIONS, ERNST AND YOUNG

Rich list bruised in iron ore price plunge

roymorgansocial Leave a comment

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 16 : 8-Sep-14

A number of prominent Australian business leaders are among the shareholders of failed iron ore producer Western Desert Resources. They include Bruce Mathieson, Roger Corbett, Scott Perrin and chairman Rick Allert. Shares in Western Desert last traded at $A0.145, compared with $A0.82 in October 2014. The company has advised that the sharp decline in the iron ore price contributed to its collapse

CORPORATES
WESTERN DESERT RESOURCES LIMITED – ASX WDR, MACQUARIE BANK LIMITED – ASX MBL, KORDA MENTHA AND COLLEAGUES PTY LTD, FERRIER HODGSON AND COMPANY, THIESS PTY LTD, BILLABONG INTERNATIONAL LIMITED – ASX BBG, COLES MYER LIMITED, TOURISM AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, FAIRFAX MEDIA LIMITED – ASX FXJ, BHP BILLITON LIMITED – ASX BHP, SHERWIN IRON LIMITED – ASX SHD, TERRITORY RESOURCES LIMITED, MEIJIN ENERGY GROUP COMPANY LIMITED, NOBLE RESOURCES NL

Iron ore slump hits economy

roymorgansocial Leave a comment

Original article by Jacob Greber, Angela Macdonald-Smith, Vesna Poljak
The Australian Financial Review – Page: 1 & 4 : 8-Sep-14

The iron ore price has fallen to $US83.60 per tonne, and has now shed 38 per cent so far in 2014. The downturn has forced Northern Territory-focused Western Desert Resources into administration. Meanwhile, former federal government minister Peter Reith has warned that Australia will eventually face another recession and reforms should be implemented now in order to reduce the impact of any economic downturn

CORPORATES
WESTERN DESERT RESOURCES LIMITED – ASX WDR, RESERVE BANK OF AUSTRALIA, FAIRFAX MEDIA LIMITED – ASX FXJ

Firms failing at double the pace

roymorgansocial Leave a comment

Original article by Anthony Klan
The Australian – Page: 21 : 30-Jul-14

Australian economist Christopher Nadarajah and consulting firm IBISworld have compiled the new Jones Partners "Insolvency Report", for 2012-13. The data show that the ratio of enterprises entering administration, receivership or liquidation has grown to 3.4% from just 1.5% in 1999-2000. The main contributor are businesses with fewer than 20 staff in the sectors of construction, retail trade and personal services. The number of insolvencies is up from around 6,500 in 2003-04 to 10,746 in 2012-13. Small businesses that failed in 2012-13 created 74,000-plus job losses while large companies going under caused only 6,250

CORPORATES
JONES PARTNERS PTY LTD, IBISWORLD PTY LTD

Harsh penalties sought for Prime directors

roymorgansocial Leave a comment

Original article by Pia Akerman
The Australian – Page: 19 : 29-Jul-14

Ian Martindale QC, on behalf of the Australian Securities & Investments Commission, has urged Federal Court judge Bernard Murphy to impose the maximum fines as well substantial bans on former board members of the failed Prime Retirement & Aged Care Property Trust. The breaches of the Corporations Act should result in a 25-year ban from acting as a director for Bill Lewski, and one of seven to 12 years for ex-federal health minister Michael Wooldridge. Co-accused Peter Clarke meanwhile has sought to revise his previously given testimony

CORPORATES
PRIME RETIREMENT AND AGED CARE PROPERTY TRUST, AUSTRALIAN PHARMACEUTICAL INDUSTRIES LIMITED – ASX API, VISION EYE INSTITUTE LIMITED – ASX VEI, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA

Insolvencies fall but not for all

roymorgansocial Leave a comment

Original article by Su-Lin Tan
The Australian Financial Review – Page: 9 : 24-Jul-14

New Australian Securities & Investments Commission data show that the rate of insolvencies among businesses has declined 19%, to now be below that of new company incorporations. Brendon Watkins, insolvency partner at law firm Minter Ellison, says one factor is the increased vigilance on lending risk at the major banks after the global financial crisis. The assessment is backed by Australian Restructuring Insolvency & Turnaround Association CEO John Winter. However, the construction and personal services sectors still have elevated rates of insolvencies

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION|AUSTRALIAN RESTRUCTURING INSOLVENCY AND TURNAROUND ASSOCIATION|MINTER ELLISON|COMMONWEALTH BANK OF AUSTRALIA – ASX CBA|CRS WARNER KUGEL PTY LTD|AUSTRALIAN INSTITUTE OF BUILDING|COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED|KELL AND RIGBY PTY LTD|ST HILLIERS CONSTRUCTION PTY LTD|WALTON CONSTRUCTION PTY LTD|REED CONSTRUCTIONS PTY LTD|HASTIE GROUP LIMITED|SOUTHERN CROSS CONSTRUCTIONS|NATIONAL BUILDPLAN GROUP PTY LTD

Tor slaps Seven for ‘rushing’ Nexus sale

roymorgansocial Leave a comment

Original article by Matt Chambers
The Australian – Page: 19 : 10-Jul-14

Hong Kong hedge fund Tor Investment Management has raised concerns about the hasty sale of Nexus Energy. It went into voluntary administration in June 2014 after rejecting an offer from Seven Group Holdings. It is thought that the deadline for the sale process is 31 July. Tor is concerned that Seven is using funding deadlines to force the sale of Nexus before other potential buyers can properly conduct due diligence

CORPORATES
NEXUS ENERGY LIMITED – ASX NXS, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, TOR INVESTMENT MANAGEMENT (HONG KONG) LIMITED, McGRATH NICOL AND PARTNERS SERVICES PTY LTD, GRESHAM ADVISORY PARTNERS LIMITED, ROYAL DUTCH SHELL PLC

Iron ore price fall hits minnows

roymorgansocial Leave a comment

Original article by Barry FitzGerald, Michael Owen
The Australian – Page: 21 and 22 : 20-Jun-14

Iron ore mining groups in Australia may lose revenue worth $US30bn ($A32.5bn) combined due to the decline in the price of the commodity. It traded at $US90.30 per tonne on 19 June 2018, down $US44.70 from the average seen in calendar 2013. Especially hard hit will be smaller producers with operations that have high input costs, and already Ferrier Hodgson has been made administrator of Termite Resources. The company owned by IMX Resources and Taifeng Yuan Chuang International started shipments from its Cairn Hill mine in South Australia in late 2010. The iron ore price at that time was $US170

CORPORATES
IMX RESOURCES LIMITED – ASX IXR, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, TERMITE RESOURCES NL, TAIFENG YUANCHUANG INTERNATIONAL DEVELOPMENT COMPANY LIMITED, FERRIER HODGSON AND COMPANY, ASX LIMITED – ASX ASX, MMG PTY LTD, RESERVE BANK OF AUSTRALIA, SOUTH AUSTRALIA. DEPT OF TREASURY AND FINANCE