BUSINESS FAILURES – AUSTRALIA

Buyers sought for under-the-pump Ten

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Original article by Mitchell Bingemann
The Australian – Page: 19 : 22-Jun-17

Ten Network’s administrators have called for expressions of interest to buy or recapitalise the free-to-air broadcaster. An advertisement in national newspapers on 22 June notes that Ten boasts gross revenue of $A3bn. Ten’s administrators from KordaMentha anticipate a 60-day sales process, although they are also expected to seek parties to recapitalise the network. KordaMentha is likely to be subject to a conflict of interests probe given that it has also acted as an adviser to Ten.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, KORDA MENTHA AND COLLEAGUES PTY LTD, AUSTRALIAN RESTRUCTURING INSOLVENCY AND TURNAROUND ASSOCIATION, GILBERT AND TOBIN LAWYERS

KordaMentha’s Ten role raises conflict issues

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Original article by Damon Kitney
The Australian – Page: 18 : 19-Jun-17

The appointment of Korda­Mentha as administrator of Ten Network is under scrutiny, as the insolvency firm has been acting as an adviser to the free-to-air broadcaster since early 2017. This may breach rules which prohibit an insolvency practitioner from becoming administrator to a company they have had a professional relationship with in the previous two years. The issue is expected to be examined by the Australian Restructuring Insolvency & Turnaround Association.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, KORDA MENTHA AND COLLEAGUES PTY LTD, AUSTRALIAN RESTRUCTURING INSOLVENCY AND TURNAROUND ASSOCIATION, CBS CORPORATION, 21ST CENTURY FOX INCORPORATED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Murdoch, Gordon in Ten deal

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Original article by Mitchell Bingemann, Darren Davidson
The Australian – Page: 17 & 27 : 15-Jun-17

Communications Minister Mitch Fifield says the Ten Network’s descent into voluntary administration has demonstrated the need for cross-media ownership reforms. Meanwhile, the struggling free-to-air broadcaster could potentially be privatised after shareholders Lachlan Murdoch and Bruce Gordon joined forces to develop a plan to refinance Ten. Their combined stake in Ten exceeds 22 per cent, but the joint venture arrangement does not breach media ownership or takeover laws.

CORPORATES
TEN REN TEA (AUSTRALIA) PTY LTD, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, NEWS CORPORATION – ASX NWS, WIN CORPORATION PTY LTD, FOXTEL MANAGEMENT PTY LTD, AUSTRALIAN LABOR PARTY, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, KORDA MENTHA AND COLLEAGUES PTY LTD, 21ST CENTURY FOX INCORPORATED, CBS CORPORATION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Day departs the house as home-building dreams turn to nightmare

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Original article by Ben Butler, Samantha Hutchins, Rick Wallace
The Australian – Page: 1 & 5 : 18-Oct-16

Family First senator Bob Day has resigned from Parliament after his residential development company, Home Australia, was placed in the hands of liquidators from McGrathNicol. The collapse has affected 207 unfinished homes in five states, and the liquidators will seek to have other builders complete these homes. Day has apologised to affected customers and conceded that he will lose his own home, as he had provided a personal guarantee for Home Australia’s debts. He has committed to repaying all of the company’s debts.

CORPORATES
FAMILY FIRST PARTY AUSTRALIA LIMITED, HOME AUSTRALIA PTY LTD, McGRATH NICOL AND PARTNERS SERVICES PTY LTD, GOSHEN CAPITAL RESOURCES, HSBC HOLDINGS PLC, QBE INSURANCE GROUP LIMITED – ASX QBE

Investors circle ailing companies in the valley of debt

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Original article by Vera Sprothen
The Australian – Page: 19 & 23 : 12-Oct-16

Preqin estimates that private debt fund managers had access to a record $US199bn ($A262bn) at the end of June 2016. Such companies are believed to be seeking to acquire distressed assets in Australia, including sectors such as resources, mining services, agricultural and housing. Distressed debt funds are said to be looking to buy debt-burdened companies or the debts of businesses than cannot meet their repayments. Oaktree Capital Management and Lone Star Funds are among the global debt fund managers that have established a presence in Australia.

CORPORATES
PREQIN LIMITED, OAKTREE CAPITAL MANAGEMENT LLC, LONE STAR FUNDS, BAIN CAPITAL CREDIT, SC LOWY FINANCIAL (HK) LIMITED, MOODY’S INVESTORS SERVICE INCORPORATED, ARRIUM LIMITED – ASX ARI, PEABODY ENERGY CORPORATION, RESERVE BANK OF AUSTRALIA, WELLS CAPITAL MANAGEMENT, ALLENS, McALEESE LIMITED – ASX MCS, BHP BILLITON LIMITED – ASX BHP, ROYAL DUTCH SHELL PLC

Domino’s dining out as Eagle Boys hit the wall

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Original article by Daniel Palmer
The Australian – Page: 21 : 21-Jul-16

Shares in Domino’s Pizza Enterprises closed 2.2 per cent higher at a new high of $A73.35 on 20 July 2016, in the wake of a rival’s collapse. Thomas Kierath of Morgan Stanley says the group could increase its market share following the demise of Eagle Boys Pizza, while Michael Simotas of Deutsche Bank notes that Domino’s could be blocked from acquiring Pizza Boys franchises on competition grounds. Morgan Stanley has an "overweight" recommendation on Domino’s shares, while Deutsche has a "hold" rating.

CORPORATES
DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, EAGLE BOYS PIZZA, MORGAN STANLEY AUSTRALIA LIMITED, DEUTSCHE BANK AG, PIZZA HUT AUSTRALIA, PIZZA CAPERS, CRUST GOURMET PTY LTD, NBC CAPITAL PTY LTD

Arrium and its steelworks to go on block in late July

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Original article by Simon Evans
The Australian Financial Review – Page: 8 : 24-May-16

KordaMentha has indicated that a number of Australian and offshore groups have expressed interest in buying the assets of Arrium. KordaMentha, which was appointed as administrator of the failed steel producer and iron ore miner in mid-April 2016, will commence the formal sale process in July, with expectations that it will be completed by the end of the year.

CORPORATES
ARRIUM LIMITED – ASX ARI, KORDA MENTHA AND COLLEAGUES PTY LTD, MOLY-COP, ARGAND PARTNERS LLC, CERBERUS CAPITAL MANAGEMENT LP, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, GRANT THORNTON AUSTRALIA

Quickflix goes bust, blames Stan for demise

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Original article by Mitchell Bingemann
The Australian – Page: 21 : 27-Apr-16

Listed subscription video-on-demand provider Quickflix has been placed in the hands of administrators from Ferrier Hodgson. Quickflix has attributed its decision to go into voluntary administration on the refusal of streaming rival Stan to endorse a proposal to restructure redeemable preference shares. They were issued to HBO in 2011 and subsequently sold to Stan’s joint owner Nine Entertainment Company in 2014. Quickflix says Stan’s terms for agreeing to the restructure were unacceptable.

CORPORATES
QUICKFLIX LIMITED – ASX QFX, STAN ENTERTAINMENT PTY LTD, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, HBO, NETFLIX INCORPORATED, FAIRFAX MEDIA LIMITED – ASX FXJ, FERRIER HODGSON AND COMPANY

Firm met in secret before plug pulled

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Original article by Simon Evans, Tim Binsted
The Australian Financial Review – Page: 15 & 20 : 21-Apr-16

Arrium’s former administrator Grant Thornton has revealed that it discussed the possibility of voluntary administration with the failed steelmaker and iron ore miner’s law firm, Herbert Smith Freehills, on 11 March 2016. Arrium went into administration on 7 April, and Grant Thornton was subsequently replaced as administrator by KordaMentha.

CORPORATES
ARRIUM LIMITED – ASX ARI, GRANT THORNTON AUSTRALIA, KORDA MENTHA AND COLLEAGUES PTY LTD, HERBERT SMITH FREEHILLS PTY LTD, GSO CAPITAL PARTNERS LP, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, LAZARD PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BANK OF CHINA GROUP, INDUSTRIAL AND COMMERCIAL BANK OF CHINA, TAIWAN BUSINESS BANK, TAIWAN COOPERATIVE BANK, CHANG HWA COMMERCIAL BANK LIMITED, BANK OF NOVA SCOTIA, GRUPO BANCO BILBAO VIZCAYA ARGENTARIA SA, HSBC BANK PLC, MIZUHO BANK LIMITED, SUMITOMO MITSUI BANKING CORPORATION, BANQUE CANTONALE DE GENEVE, DEUTSCHE BANK AG, MEGA INTERNATIONAL COMMERCIAL BANK COMPANY LIMITED, BABSON CAPITAL MANAGEMENT LLC, AEGON NV, MUTUAL OF OMAHA INSURANCE COMPANY, OHIO NATIONAL FINANCIAL SERVICES INCORPORATED

US bank action may thwart Arrium rescue

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Original article by Sarah Danckert
The Australian Financial Review – Page: 11 & 16 : 18-Apr-16

Morgan Stanley Bank has applied for a court order in the US seeking the repayment of a $US75.4m ($A97.6m) credit facility that it provided to failed steelmaker and iron ore miner Arrium. The US bank is also believed to be seeking a court order to prevent Arrium from transferring assets from the US. Arrium’s administrator KordaMentha in turn will apply to the Federal Court of Australia to block Morgan Stanley’s attempt to demand repayment of the debt facility.

CORPORATES
ARRIUM LIMITED – ASX ARI, MORGAN STANLEY BANK NA, KORDA MENTHA AND COLLEAGUES PTY LTD, FEDERAL COURT OF AUSTRALIA, DELAWARE CHANCERY COURT, MOLY-COP USA LLC, GRANT THORNTON AUSTRALIA, ARRIUM FINANCE, ARRIUM IRON ORE HOLDINGS, LIFESTEEL TECHNOLOGIES AMERICA LLC, ONESTEEL GROUP INCORPORATED, ONESTEEL RECYCLING INCORPORATED, ONESTEEL INVESTMENTS, GSO CAPITAL PARTNERS LP, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, McGRATH NICOL AND PARTNERS SERVICES PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, ANSETT AUSTRALIA HOLDINGS LIMITED