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Grant Thornton Australia Limited Level 18 King George Central 145 Ann Street Brisbane QLD 4000 T (07) 3222 0200
ABN-41 127 556 389 ACN-127 556 389
Grant Thornton Australia Ltd ABN 41 127 556 389 ACN 127 556 389 ‘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 member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one 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 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Legislation.
www.grantthornton.com.au
To the Recipient as Addressed
19 December 2019
Dear Sir / Madam
Muggeridge Constructions Pty Ltd (In Liquidation) ACN 130 842 572 (the “Company”)
Statutory Report by Liquidator
We refer to the appointment of Michael McCann and I, Graham Killer as Liquidators of the Company on 19 September 2019 and to our initial correspondence to creditors dated 3 October 2019 in which we advised you of our appointment as liquidators and your rights as a creditor in the liquidation.
Enclosed is our Statutory Report by Liquidator, the purpose of which is to:
• Provide you with an update on the progress of the liquidation;
• Provide you with an estimate of the assets and liabilities of the Company;
• Brief you on further inquiries that need to be undertaken;
• Explain the causes of failure of the Company;
• Advise you of likely recovery action; and
• Advise you of the likelihood of a dividend being paid in the liquidation.
We will also be requesting that you consider our detailed remuneration report and pass proposals to approve our remuneration. Enclosed within the Statutory Report by Liquidator is our Remuneration Approval Report and Proposal Forms.
A copy of the Statutory Report by Liquidator, our Remuneration Approval Report and Proposal Forms have been uploaded to our form’s website at: https://www.grantthornton.com.au/ under Creditors Information. Creditors are advised to search “Muggeridge Constructions Pty Ltd” at the top of the webpage to easily navigate to the documents.
© 2019 Grant Thornton Australia Limited. 2
Please contact our office should you require further information.
Yours faithfully
Graham Robert Killer Joint and Several Liquidator
Appointment Date: 19 September 2019
Contact Name: Zac Dullard
Contact Number: +61 7 3222 0341
Email: zac.dullard@au.gt.com
Encl
Statutory Report by Liquidator
Statutory Report by Liquidator
Muggeridge Constructions Pty Ltd (In Liquidation) ACN 130 842 572 (the “Company”) 19 December 2019 Graham Robert Killer Joint and Several Liquidator T (07) 3222 0200 E graham.killer@au.gt.com
Michael Gerard McCann Joint and Several Liquidator T (07) 3222 0200 E michael.mccann@au.gt.com
Statutory Report by Liquidator 2
Contents 1 Introduction 3
2 Company history & causes of the Company’s failure 3
2.1 Company Activity 3
2.2 Causes of Failure 4
3 Update on the progress of the liquidation 4
3.1 Assets and liabilities 4
3.2 Receipts and Payments to date 7
3.3 Investigations and recovery actions 8
4 Likelihood of a dividend 9
5 Meetings Held 9
6 Cost of the liquidation 9
7 What happens next in the liquidation? 10
8 Compliance with best practice 10
9 What to do next 10
10 Where can you get more information? 11
Statutory Report by Liquidator 3
1 Introduction We refer to our initial correspondence to creditors dated 3 October 2019 in which we advised you of our appointment as Joint and Several Liquidators and your rights as a creditor in the liquidation.
The purpose of this report is to:
• Provide you with an update on the progress of the liquidation;
• Provide you with an estimate of the assets and liabilities of the Company;
• Brief you on further inquiries that need to be undertaken;
• Explain the causes of failure of the Company;
• Advise you of likely recovery action; and
• Advise you of the likelihood of a dividend being paid in the liquidation.
We will also be requesting that you consider our detailed remuneration report and pass a proposal to approve our remuneration.
In preparing this report, we have relied on information provided from numerous sources, including:
• Discussions with the Director of the Company, Mr Bruce Muggeridge;
• Discussions with the Secured Creditor;
• Discussions with the Company’s pre appointment legal representatives;
• Information available from public sources, such as, Australian Securities and Investments Commission (ASIC) and the Personal Property Securities Register (PPSR); and
• A review of the Company's books and records provided to date.
Whilst we have no reason to doubt the accuracy of any information, we have not performed an audit and reserve the right to alter our conclusions, should the underlying data prove to be inaccurate or change materially from the date of appointment.
2 Company history & causes of the Company’s failure
2.1 Company Activity
The Company was incorporated on 29 April 2008 and most recently has traded from 1179 Mt Gravatt-Capalaba Road, Burbank, Queensland. The business operated under the trading name of Muggeridge Constructions.
The Company previously traded in the construction industry with the Director, Mr Bruce Muggeridge advising the Company engaged in the following construction services:
• Construction of high-rise apartments (apartments, townhouses and hotels);
• Construction of residential dwellings (prestige homes only);
• Commercial renovations and fit-outs; and
• Residential renovations.
At the date of appointment, the Company had ceased trading. The Company did have any employees at the date of appointment.
From our investigations to date we understand the Director was responsible for the operational management of the Company and business operations.
Statutory Report by Liquidator 4
2.2 Causes of Failure
The Director has stated the reason for the Company’s failure was due to a number of adverse legal decisions against the Company in relation to various projects.
Our investigations into the affairs of the Company confirm that the Company’s difficulties were brought about, in part, by the reason identified by the Director. The failure of the Company may also be due to the following:
• Poor strategic management of the business; and
• Trading losses.
3 Update on the progress of the liquidation
3.1 Assets and liabilities
The Director of the Company is required to complete and provide to the Liquidators a statement about the Company’s business, property, affairs and financial circumstances, also known as the Report on Company Activities and Property (ROCAP). The ROCAP is a snapshot in time as at the date of our appointment of the assets and liabilities of the Company, disclosing book values and the Director’s opinion on the Estimated Realisable Value (ERV) for assets.
On 19 September 2019, a written request was issued to the Director to complete the ROCAP for the Company. A completed ROCAP was submitted to our office on 24 October 2019.
Attached at Appendix A is an analysis of the assets and liabilities of the Company, and comparison to the ROCAP as provided by the Director.
We provide below further details on the assets and liabilities of the Company.
3.1.1 Interest in Land
On appointment, land title searches were conducted however we were unable to locate any property currently held in the Company’s name.
3.1.2 Cash at Bank
On appointment, we issued notices to all major Australian financial institutions requesting they immediately freeze all accounts held in the Company’s name.
The National Australia Bank (“NAB”) responded to our request and advised that the Company held the following account:
Bank Account Type Account Ending Balance ($)
National Australia Bank Business Everyday Account …5945 (156,143.86)
This account operated as the Company’s overdraft facility. The bank account had a historical limit of c.$1m although the NAB advised on 25 January 2019, the facility limit was reduced to $150k.
In addition to the above account, the Company held NAB Visa credit cards in the name of the Director and his wife, Mrs Jody Muggeridge. Our initial investigations have identified some of the transactions on the credit cards as being personal in nature and our investigations are continuing in this respect.
Further, the NAB advised the Company held a Bank Guarantee facility in the amount of c. $156k. However, the NAB have informed us that the facility has not been used. Our investigations regarding this Bank Guarantee are ongoing.
Statutory Report by Liquidator 5
3.1.3 Debtors
Our investigations to date have identified the following debtors and intercompany loans:
Asset Type Description Amount ($)
Debtors Sundry Debtors 35,933
Loan Muggeridge Engineering Pty Ltd 46,323
Loan Wandoan Developments Pty Ltd 66,409
Our investigations in respect of sundry debtors are ongoing. The account appears to be a reconciling account involving various adjustments and does not consist of outstanding invoices for services performed by the Company.
In relation to the intercompany loans, we have issued letters of demand to Muggeridge Engineering Pty Ltd and Wandoan Developments Pty Ltd. Both of these companies appear to be related to the Director. We are yet to receive a response to our demand letters.
3.1.4 Prepayments
The Company’s management accounts have identified the following prepayments:
Description Management accounts
($)
Bond Withheld 5,075
Borrowing Costs
3,197
FBT Yearly 23,347
MBA Insurance (17,217)
Term Interest 10,987
Total 25,389
We understand some of these prepayments may not be recoverable and our investigations in respect of recovering any prepayments are ongoing.
3.1.5 Motor Vehicles
On appointment, we conducted a vehicle registration search for the Company which identified the following vehicles registered in the Company’s name:
Registration Motor Vehicle Financier Status
009VNT 2013 Nissan Patrol Wagon National Australia Bank Disclaimed
059 WFP 2016 Holden Commodore Capital Finance Disclaimed
894XKT 2017 Nissan Navara Dual Cab Macquarie Disclaimed
We subsequently provided with further detailed regarding the vehicles and sort an indicative valuation of the three vehicles to ascertain if any equity existed in the assets. It was determined there was no equity in the Holden Commodore nor the Nissan Navara and were subsequently disclaimed.
The Nissan Patrol financed through NAB appeared to have some equity in the vehicle. However, NAB hold a General Security Agreement against the Company registered on the PPSR so any proceeds from the sale of the vehicle were ultimately payable to NAB. We liaised with the NAB and subsequently disclaimed our interest in this vehicle.
Statutory Report by Liquidator 6
3.1.6 Plant & Equipment
Prior to our appointment, the Company engaged a formal valuer to conduct a valuation of the following Company assets:
Asset Class Description Value ($)
Excavator 2015 Dieci Telehandler 35,000
Excavator 2014 Cat Excavator 15,000
Mower 2014 Scrag zero turn Lawnmower 4,000
Trailer 2015 Box Trailer 4,000
Total $58,000
The Company’s books and records indicate Mrs Muggeridge had purchased the above plant and equipment from the Company in line with the values per the valuation. However, we are unable to identify the receipt of funds in the Company’s bank account. We have requested substantiation of the funds from Mrs Muggeridge.
3.1.7 Assets subject to specific charges – Personal Property Security Registration (PPSR)
A search of the Personal Property and Securities Register (PPSR) has revealed 40 PPS registrations recorded against the Company at the date of appointment: Below is a table summarising the PPS registrations:
Secured Creditor (Secured Party) # of
PPSR PMSIs Collateral Class
Amount Owed Comments
Stoddart Group 1 Yes Other Goods - Discharged Acrow Formwork And Scaffolding Pty Ltd 1 Yes Other Goods Unknown No response Agco Finance Pty Limited 1 Yes Motor Vehicle $3,306 Mower Atf Services Pty Ltd 2 Yes Other Goods - Discharged Ausreo Pty Limited 1 No Other Goods $42,259 Formwork Aussie Excavators Pty Ltd 1 No Other Goods Unknown No response Austral Group 2 Yes Other Goods Unknown No response Big River Group Pty Ltd 1 Yes Other Goods Unknown No response Bluescope Distribution Pty Ltd 1 Yes Other Goods Unknown No response Boral Group 1 Yes Other Goods - Discharged Bradnam'S Windows And Doors Pty. Ltd. 1 Yes Other Goods - Discharged Capital Finance Australia Limited 1 Yes Motor Vehicle $35,315.75 Holden Commodore - Disclaimed Capral Limited 1 Yes Other Goods $203,053 Formwork Central Plumbing Supplies Pty. Ltd. 1 No Other Goods Unknown No response Cetnaj Pty Ltd 1 Yes Other Goods - Discharged Coates Hire Operations Pty Limited 2 Yes Other Goods - Discharged Dbay Pty Ltd 1 Unknown ALLPAAP Unknown Related Party – no response Excel Concrete Pty Ltd 1 Yes Other Goods - Discharged Fasteners Direct Aust Pty Ltd 1 Unknown ALLPAAP - Discharged Flooring Queensland Pty Ltd 1 Yes Other Goods - Discharged Grove Hire Pty Ltd 1 No Other Goods - Discharged Jarmen Pty Ltd 1 No Other Goods - Discharged Kluks Pty. Ltd. 1 Unknown ALLPAAP Unknown Related Party – no response Langs Building Supplies Pty. Ltd. 1 Yes Other Goods - Discharged Macquarie Leasing Pty Ltd 1 Yes Motor Vehicle $27,357.07 Nissan Navara - Disclaimed
National Australia Bank Limited 6 Unknown ALLPAAP & Motor Vehicle $10,799.77 Nissan Patrol - Disclaimed
Royal Plywood (Qld) Pty Limited 1 Yes Other Goods Unknown No response Royal Wolf Trading Australia Pty Limited 1 Yes Other Goods - Discharged St.George Motor Finance Limited 1 No Motor Vehicle Unknown No response The Tile Factory Wholesale Pty. Ltd. 1 No Other Goods Unknown No response
Winning Appliances Pty Ltd 2 Yes Other Goods Unknown No response
Statutory Report by Liquidator 7
3.1.8 Legal Disputes
On appointment, the Company was involved in multiple legal disputes. We have obtained all information from the Company’s pre appointment lawyers in respect of these legal disputes and have engaged legal advisors to assess the merits of continuing any of the claims.
Our investigations in this respect are ongoing.
3.1.9 Employee Liabilities
Upon our appointment, the Company had ceased trading and there were no employees.
The Company’s records indicate the following outstanding employee entitlements:
Entitlement Amount ($)
Accrued Annual Leave 57,163.43
Superannuation 14,676.12
Total $71,839.55
Our investigations to quantify the exact amount of outstanding employee entitlements are ongoing.
3.1.10 Unsecured Creditors
The table below represents the known unsecured creditors of the Company to date:
We note we have not adjudicated on any claims as yet.
3.2 Receipts and Payments to date
We have not received any funds nor processed any payments in the Liquidation to date.
Creditor ROCAP ($) Advised ($) Claimed($)Alpha Acoustics 2,200.00 2,200.00 - ASIC 263.00 263.00 - Australian Insulated Glass 22,990.00 22,990.00 - Australian Taxation Office - - 8,920.63 BBC Painting QLD Pty Ltd 15,686.00 15,686.00 - Bretts Timber and Hardw are 21,859.89 21,859.89 21,859.89 Bruce Muggeridge 964,635.28 964,635.28 Bunnings Warehouse 296.54 296.54 - Citif ire Services Pty Ltd 16,600.00 16,600.00 - Dipjit Bose and Sujata Bose - - 81,048.03 Elken Kitchens (*RTS*) 8,445.00 8,445.00 - Essential Technologies Group 2,608.79 2,608.79 - Helena Cleaning Services 3,168.00 3,168.00 - Holding Redlich 114,245.26 114,245.26 - John Meredith 20,584.33 20,584.33 - Kennards Hire 724.00 724.00 - Lighthouse Industries 237,793.05 237,793.05 - Master Floor Coverings Qld Pty Ltd 31,350.00 31,350.00 - Midcoast Plasterboard Linings 83,766.00 83,766.00 - Middy's Data and Electrical 23,604.64 23,604.64 - One Time Supplier 5,676.00 5,676.00 - Premier Box Pty Ltd - - 250.25 Queensland Building and Construction Commission 2,431.00 2,431.00 - Queensland Stainless Pty Ltd 68,200.00 68,200.00 - S&K Waterproofing 52,370.00 52,370.00 52,370.00 Sue & Bruce 1,947,434.49 1,947,434.49 Temple Constructions Pty Ltd 149,090.23 149,090.23 - Young Plumbing & Excavators 55,938.47 55,938.47 66,967.04
Total 3,851,959.97 3,851,959.97 231,415.84
Statutory Report by Liquidator 8
3.3 Investigations and recovery actions
3.3.1 Investigations undertaken
We have commenced our initial investigations into the affairs of the Company prior to our appointment and any potential recovery actions that may be available to the Liquidators to pursue.
To date, we have undertaken the following investigations:
• Director’s obligation to assist the Liquidators;
• Director’s obligations to maintain adequate books and records;
• Insolvent trading; and
• Voidable transactions.
Our initial findings of these investigations are detailed below. Given the limited time that has passed in the Liquidation, and that further investigations will be undertaken, the below findings are preliminary and may be subject to change.
3.3.2 Directors and Officers to assist the Liquidator
Section 530A of the Corporations Act 2001 (Clth) (the “Act”) places a positive obligation on a director to assist the liquidator or provisional liquidator of a company. We believe that the Director has complied with his obligation pursuant to s530A of the Act.
3.3.3 Director’s obligations to maintain adequate books and records
The Company’s accounting software, Reckon online, appears to record comprehensive transactions up to the date of our appointment. However, we note the Director is still to deliver the Company’s physical records to this office.
At this time we have no evidence to suggest that the Director has breached his obligations to maintain adequate books and records of the Company pursuant to s286 of the Act.
3.3.4 Insolvent trading
We have reviewed both the cash flow and balance sheet test of insolvency and have determined that the Company likely became insolvent from at least November 2018 based on the following factors:
• The Company did not generate any material revenue since 1 September 2018.
• Consistent monthly trading losses from September 2018;
• The Company’s balance sheet from November 2018 onwards indicates the Company did not have sufficient assets to meets its liabilities; and
• The Company had outstanding employee superannuation contributions from July 2018.
Our investigations into an exact date of insolvency and the basis of any potential insolvent trading claim are ongoing.
3.3.5 Voidable transactions
Preference claims
The relation-back period in this matter commenced on 19 March 2019, being six months prior to the date of our appointment.
My preliminary investigations to date have identified a number of payments totalling c. $125,000 that may be considered preferential.
Our investigations are continuing into the circumstances into these payments.
Statutory Report by Liquidator 9
Unreasonable director-related transactions
Our preliminary investigations may have identified a number of potential unreasonable director-related transactions.
The Director and his wife both held a credit card in the Company’s name. Our initial investigations have identified some potential personal transactions. Further investigations are required to ascertain the quantum of any claim and the merits in pursuing same.
Further, the Director had a loan account with the Company at the date of our appointment. The transactions noted in the Director’s loan account require further investigations to identify if any of these transactions could potentially be unreasonable director related transactions.
3.3.6 Further inquiries to be undertaken
We plan to undertake the following further investigations:
• Assess any potential insolvent trading claim against the Director;
• Consider preference claims and pursue recovery of same (if any are identified);
• Further investigate unreasonable director related transactions and pursue recovery of same (if any are identified);
• Determine the status of employee entitlements claims; and
• Any other matters determined to be of interest to the Liquidator.
4 Likelihood of a dividend The likelihood of a dividend being paid to creditors will be affected by a number of factors including:
• The size and complexity of the administration;
• Any recoveries being available to the Liquidators;
• The amount of assets realisable and the costs of realising those assets;
• The statutory priority of certain claims and costs;
• The value of various classes of claims including secured, priority and unsecured creditor claims; and
• The volume of enquiries by creditors and other stakeholders.
We are unable to provide a dividend estimate of any certainty at this stage of the liquidation. If we do declare a dividend, any creditor whose claim has not yet been admitted will be contacted and asked to submit a proof of debt.
5 Meetings Held To date, no meeting of the Company’s creditors have been required to be held and therefore, no meeting of creditors has been convened. Should a meeting of creditors be required in the future, notification of same will be provided to all creditor.
6 Cost of the liquidation We are seeking approval of remuneration of $82,708 (excluding GST) for the period from appointment to finalisation of the liquidation.
Attached at Appendix B is a detailed report on our remuneration, called a Remuneration Approval Report. We are unable to pay our remuneration without the approval of creditors or the court.
Please note, even if creditors approve our remuneration this does not guarantee payment of our fees as we are only paid if sufficient assets are recovered. At this stage of the Liquidation, there are insufficient assets to pay all of our fees.
We are seeking creditor approval of our remuneration by a proposal without a meeting.
Statutory Report by Liquidator 10
To participate in the proposal, please complete and return the following by no later than Wednesday 15 January 2020:
• The “proposal without a meeting” form/s included at Appendix C.
• The “proof of debt” form included at Appendix D which provides information about what the company owes you, along with supporting documents for your claim (if not returned previously).
The documents can be scanned and emailed to zac.dullard@au.gt.com or returned via post to our firm’s address, attention Zac Dullard. If you choose to return these documents via post, please ensure that you allow enough time for us to receive them by the due date.
An information sheet on “proposals without a meeting” is included at Appendix E.
7 What happens next in the liquidation? We will proceed with the liquidation, including:
• Consider the merits on all pre-appointment legal disputes;
• Complete our investigations into the Company’s affairs;
• Recover any voidable transactions, if identified;
• Complete our reporting to the corporate insolvency regulator, the Australian Securities and Investments Commission (ASIC);
• Make a distribution to creditors (if sufficient funds become available); and
• Any other matters relevant to the Liquidation.
If we receive a request for a meeting that complies with the guidelines set out in the initial information provided to you, we will hold a meeting of creditors.
We may write to you again with further information on the progress of the liquidation.
We expect to have completed this liquidation within 6 – 12 months.
8 Compliance with best practice We confirm that this report complies with the requirements in the Insolvency Practice Rules (IPR), specifically IPR 70-40, as well as the statements of best practice issued by the Australian Restructuring Insolvency and Turnaround Association (ARITA) with regard to content of the Statutory Report by Liquidator and the Code of Professional Practice with regard to remuneration.
9 What to do next You should now:
• Read the report and attached information;
• Determine if and how you are going to vote on the proposal; and
• Complete and return your proposal voting form and proof of debt by Wednesday, 15 January 2020.
Statutory Report by Liquidator 11
10 Where can you get more information? You can access information which may assist you on the following websites:
1 ARITA at www.arita.com.au/creditors; and
2 ASIC at www.asic.giv.au (search for “insolvency information sheets”).
Should you have any queries with respect to the above, you may also contact Zac Dullard of our office on +61 7 3222 0341 or via email on zac.dullard@au.gt.com. There is also information about this liquidation on our firm’s website.
Dated 19 December 2019
Graham Killer Joint and Several Liquidator
List of attachments
Appendix A – ROCAP comparison
Appendix B – Remuneration Approval Report
Appendix C – Proposal Forms
Appendix D – Form 535 – Proof of Debt
Appendix E – Information sheet: Proposals without meeting
Statutory Report by Liquidator 12
ROCAP comparison
NotesROCAP
($) Management Accounts
($) Liquidators' ERV
($) Assets
Prepayments 25,389 25,389 Unknow nAccounts Receivable and Sundry Debtors 35,933 35,933 Unknow nIntercompany Loans
Muggeridge Engineering Pty Ltd 46,323 46,323 Unknow nWandoan Developments Pty Ltd 66,410 66,410 Unknow n
Motor Vehicles 48,466 48,466 NilPlant & Equipment and STS General Pool 113,106 113,106 Unknow nTotal Assets 335,628 335,628 Unknown
LiabilitiesSecured creditor claims 1 861,369 861,369 1,397,199 Priority creditor claims 2 71,840 71,840 71,840 Unsecured creditor claims 3 4,137,428 2,997,490 3,953,207 Total Liabilities 5,053,419 3,913,481 5,422,246
Surplus / (Deficiency) (4,717,792) (3,577,853) Unknown
Notes1. Secured creditor claims include amounts per the management accounts and claims submitted in the Liquidation to date.
3. Unsecured creditors include creditors amounts per the management accounts and claims submitted in the Liquidation to date. We note no claims have been adjudicated on to date.
2. Priority creditor claims include annual leave and superannuation entitlements per the management accounts and are yet to be quantif ied.
Appendix A
Statutory Report by Liquidator 13
Remuneration Approval Report
Appendix B
Remuneration Approval Report Muggeridge Constructions Pty Ltd (In Liquidation) ACN 130 842 572 (“the Company”)
19 December 2019
Muggeridge Constructions Pty Ltd (In Liquidation) – Remuneration Approval Report 2
This remuneration approval report provides you with the information you need to be able to make an informed decision regarding the approval of our remuneration for undertaking the Creditors Voluntary Liquidation of Muggeridge Constructions Pty Ltd.
This report has the following information included:
1. Declaration 4
2. Executive Summary 4
3. Remuneration 5
3.1 Remuneration claim resolutions 5
3.2 Details of remuneration 5
3.3 Total remuneration reconciliation 6
3.4 Likely impact on dividends 6
4. Disbursements 7
4.1 Internal disbursement claim 7
4.2 Future basis of internal disbursements 8
5. Summary of Receipts and Payments 9
6. Approval of remuneration and internal disbursements 9
7. Queries 9
Schedule 1 – Resolution 1 – Summary Table 10
Schedule 2 – Resolution 1 Table of major tasks for remuneration 11
Schedule 3 – Resolution 2 Table of major tasks for remuneration 13
Schedule 4 – Scale of Rates 16
Contents
Report title 3
You should read this report and the other documentation that we have sent you.
To minimise the costs in this Creditors Voluntary Liquidation, we have elected to seek the approval of creditors for our remuneration and internal disbursements without a meeting. Information about the proposals without a meeting process is included at Section 6 of this report.
You can cast your vote by using the included voting forms. These forms then need to be returned to our office by post, scanned and emailed or faxed. We need to receive your forms by Wednesday 15 January 2020 for your vote to count. If you chose to use post, please allow enough time for your letter to be delivered.
If you have any questions, or need any assistance with understanding the materials we have sent to you, please contact Zac Dullard on +61 7 3222 0341 or via email on zac.dullard@au.gt.com.
What do you need to do next?
Muggeridge Constructions Pty Ltd (In Liquidation) – Remuneration Approval Report 4
1 Declaration Graham Robert Killer and Michael Gerard McCann of Grant Thornton Australia Limited have undertaken a proper assessment of this remuneration claim for our appointment as Joint and Several Liquidators of Muggeridge Constructions Pty Ltd 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 Creditors Voluntary Liquidation.
2. Executive Summary The total remuneration for this appointment is estimated to be $82,708 (excluding GST).
This has increased compared to our previous estimate as a consequence of:
• Assessment of the legal disputes in which the Company is involved;
• Assessing the quantum of a potential insolvent trading claim;
• Quantifying employee superannuation claims in consultation with the Australian Taxation Office;
• Liaising with various creditors for the purpose of their insurance claims; and
• Investigating potential unreasonable director related transactions and pursuing recovery of same.
Remuneration currently claimed is summarised below:
* Approval for the future remuneration sought is based on an estimate of the work necessary to the completion of the administration. Should additional work be necessary beyond what is contemplated, further approval may be sought from creditors.
Period Report Reference Amount (Ex GST) ($)
Current Remuneration claim:
Resolution 1: 19 September 2019 to 30 November 2019 3.2, Sch 1 & 2 47,708.00
Resolution 2: 1 December 201 9 to Finalisation * 3.2, Sch 3 35,000.00
Total remuneration claimed 82,708.00
Muggeridge Constructions Pty Ltd (In Liquidation) – Remuneration Approval Report 5
Internal disbursements currently claimed are summarised below:
Please refer to report section references detailed in the above table for full details of the calculation and composition of the remuneration approval sought.
3 Remuneration 3.1 Remuneration claim resolutions
We will be seeking approval of the following resolutions to approve our remuneration. Details to support these resolutions are included in section 3.2 and in the attached Schedules.
Resolution 1 from 19 September 2019 – 30 November 2019: “That the remuneration of the Liquidators, their partners and staff, for the period from 19 September 2019 to 30 November 2019, calculated at the hours spent at the rates detailed in the Remuneration Approval Report dated 6 December 2019, is approved for payment in the amount of $47,708, plus GST, to be drawn from available funds immediately or as funds become available.”
Resolution 2 from 1 December to Finalisation: “That the future remuneration of the Liquidators for the period from 1 December 2019 to finalisation, is determined at a sum equal to the cost of time spent by the Liquidators and their partners and staff, calculated at the hourly rates as detailed in the Remuneration Approval Report dated 6 December 2019, that may be increased at a rate of up to 10% at 1 July each year (rounded to the nearest $10), up to a capped amount of $35,000, plus GST, and that the Liquidators can draw the remuneration from available funds as time is incurred on a monthly basis or as funds become available.”
3.2 Details of remuneration
The basis of calculating the remuneration claims are summarised below and the details of the major tasks performed and the costs associated with each of those major tasks are contained in Schedules 1 - 3.
Resolution 1 from 19 September 2019 to 30 November 2019
The table in Schedule 1 sets out time charged to each major task area by staff members working on the Creditors Voluntary Liquidation for the period 19 September 2019 to 30 November 2019 which is the basis of the Resolution 1 claim. More detailed descriptions of the tasks performed within each task area, matching the amounts below, are contained in Schedule 2.
Internal disbursements claimed Cost Total (Excl GST) ($)
Postage (large) $1.98 / Letter x 48 Letters 95.04
Total (Excl GST) 95.04
Total ($) Admin ($) Assets ($) Creditors ($) Employees ($) Investigations ($)
Total (excl GST) 47,708.00 11,072.50 4,050.00 18,581.50 2,112.00 11,892.00 GST 4,770.80 Total (Incl GST) 52,478.80
Task Area
Muggeridge Constructions Pty Ltd (In Liquidation) – Remuneration Approval Report 6
Resolution 2 from 1 December to Finalisation
The below table sets out the expected costs for the major tasks likely to be performed by the Liquidators and our staff for the period 1 December 2019 to Finalisation which is the basis of the Resolution 2 claim. More detailed descriptions of the tasks likely to be performed within each task area, matching the amounts below, are contained in Schedule 3.
3.3 Total remuneration reconciliation
At this point in time we estimate that the total remuneration for this Creditors Voluntary Liquidation will be $87,708 (excluding GST).
This estimate differs to the estimate of costs provided in the Initial Remuneration Notice dated 3 October 2019, which estimated a cost of the Liquidation of $30,000 to $50,000 (excluding GST), for the following reasons:
• Assessment of the legal disputes in which the Company is involved;
• Assessing the quantum of a potential insolvent trading claim;
• Quantifying employee superannuation claims in consultation with the Australian Taxation Office;
• Liaising with various creditors for the purpose of their insurance claims; and
• Investigating potential unreasonable director related transactions and pursuing recovery of same.
We have provided an explanation of tasks remaining to be completed, including my estimated costs to complete those tasks, to support our current remuneration approval request, at section 3.2 of the report and in Schedule 3.
In preparing this remuneration approval report, we have made our best estimate at what we believe the Creditors Voluntary Liquidation will cost to complete and we do not anticipate that we will have to ask creditors to approve any further remuneration. However, should the Creditors Voluntary Liquidation not proceed as expected, we will advise creditors and we may seek approval of further remuneration and provide details on why the remuneration has changed.
3.4 Likely impact on dividends
The Corporations Act sets the order for payment of claims against the Company and it provides for remuneration of the Joint and Several Liquidators to be paid in priority to other claims. This ensures that when there are sufficient funds, the Joint and Several Liquidators receives payment for the work done to recover assets, investigate the Company’s affairs, report to creditors and ASIC and distribute any available funds. Even if creditors approve our remuneration, this does not guarantee that we will be paid, as we are only paid if sufficient assets are recovered.
Any dividend to creditors will also be impacted by the amount of assets that we are able to recover and the amount of creditor claims that are admitted to participate in any dividend, including any claims by priority creditors such as employees.
Total ($) Admin ($) Assets ($) Creditors ($) Employees ($) Investigations ($)Total (excl GST) 35,000.00 5,000.00 5,000.00 10,000.00 5,000.00 10,000.00 GST 3,500.00 Total (Incl GST) 38,500.00
Task Area
Total ($) Admin ($) Assets ($) Creditors ($) Employees ($) Investigations ($)Total (excl GST) 82,708.00 16,072.50 9,050.00 28,581.50 7,112.00 21,892.00 Total GST 8,270.80 Total (Incl GST) 90,978.80
Task Area
Muggeridge Constructions Pty Ltd (In Liquidation) – Remuneration Approval Report 7
We are unable to provide a dividend estimate of any certainty at this stage of the liquidation. If we do declare a divided, any creditor whose claim has not yet been admitted will be contacted and asked to submit a proof of debt.
3.5 Remuneration recovered from external sources
Prior to our appointment, we provided an estimate of the cost of the administration to the Director. As discussed above, this estimate differs from the original estimate and the reason for the difference have also been provided above.
We received an up-front payment of $22,000 to cover the Liquidators’ remuneration and expenses arising out of the Liquidation appointment. The up-front payment was provided by Kluks Pty Ltd, a related party company and a secured creditor of the Company. The up-front payment is currently being held on trust by Mullins Lawyers. This has been disclosed in our Declaration of Relevant Relationships and Indemnities.
We will use the upfront payment to pay our fees claimed under Resolution 1 for the period 19 September 2019 to 30 November 2019 should the resolution be approved by creditors.
4 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 - these are recovered at cost. Examples of externally provided non-professional costs are travel, accommodation and search fees.
• 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. Details of the basis of recovery of each of these costs is discussed below.
We have undertaken a proper assessment of disbursements claimed for Muggeridge Constructions Pty Ltd (In Liquidation) in accordance with the law and applicable professional standards. We are satisfied that the disbursements claimed are necessary and proper.
We will be seeking creditor approval to pay our internal disbursements from creditors.
4.1 Internal disbursement claim
The following internal disbursements have been claimed by our firm for the period from 19 September 2019 to 30 November 2019. Approval of these disbursements from creditors in the amount of $95.04 is being sought via a proposal without a meeting.
Resolution 3: “That the internal disbursements of the Liquidators, their partners and staff for the period 19 September 2019 to 30 November 2019 be approved in the sum of $95.04 plus GST and that the Liquidators can draw the disbursements immediately or as required.”
Internal disbursements claimed Cost Total (Excl GST) ($)
Postage (large) $1.98 / Letter x 48 Letters 95.04
Total (Excl GST) 95.04
Muggeridge Constructions Pty Ltd (In Liquidation) – Remuneration Approval Report 8
4.2 Future basis of internal disbursements
Future disbursements provided by our firm will be charged to the administration on the following basis:
Approval of the payment of these disbursements at the above rates to a capped amount of $1,000 (excluding GST) is being sought from creditors via a proposal without a meeting.
Resolution 4: “That the future internal disbursements of the Liquidators, their partners and staff for the period 1 December 2019 to finalisation be approved to a capped amount of $1,000 plus GST and that the Liquidators can draw the disbursements immediately or as required from the assets of the Company.”
For calendar year ending 31 December 2019
From 1 January 2020 onwards
Internal disbursements Rate (Excl GST) Rate (Excl GST)
Courier At Cost At Cost
Postage (large) $2.20 / letter $1.98 / letter
Postage (small) $1.10 / letter $0.99 / letter
Fax (interstate) $2.00 / page $2.00 / page
Fax (local) $1.00 / page $1.00 / page
Staff vehicle use $0.66 / km $0.66 / km
Muggeridge Constructions Pty Ltd (In Liquidation) – Remuneration Approval Report 9
5 Summary of Receipts and Payments We have not received any funds nor processed any payments in the Liquidation to date.
6 Approval of remuneration and internal disbursement In summary, we are seeking creditor approval for the following resolutions for our remuneration and internal disbursements
Resolution 1 That the remuneration of the Liquidators, their partners and staff, for the period from 19 September 2019 to 30 November 2019, calculated at the hours spent at the rates detailed in the Remuneration Approval Report dated 6 December 2019, is approved for payment in the amount of $47,708, plus GST, to be drawn from available funds immediately or as funds become available.
Resolution 2 That the future remuneration of the Liquidators for the period from 1 December 2019 to finalisation, is determined at a sum equal to the cost of time spent by the Liquidators and their partners and staff, calculated at the hourly rates as detailed in the Remuneration Approval Report dated 6 December 2019, that may be increased at a rate of up to 10% at 1 July each year (rounded to the nearest $10), up to a capped amount of $35,000, plus GST, and that the Liquidators can draw the remuneration from available funds as time is incurred on a monthly basis or as funds become available.
Resolution 3 That the internal disbursements of the Liquidators, their partners and staff for the period 19 September 2019 to 30 November 2019 be approved in the sum of $95.04 plus GST and that the Liquidators can draw the disbursements immediately or as required.
Resolution 4 That the future internal disbursements of the Liquidators, their partners and staff for the period 1 December 2019 to finalisation be approved to a capped amount of $1,000 plus GST and that the Liquidators can draw the disbursements immediately or as required from the assets of the Company.
Additionally, we are seeking approval of the following resolution in respect of the Company’s books and records:
Resolution 5 That the creditors direct the Liquidators to apply to ASIC when appropriate or upon finalisation of the liquidation for consent to destroy books within the retention period in accordance with IPS 70-35.
7 Queries If you have any queries in relation to the information in this report, please contact our staff:
Contact Name: Zac Dullard
Contact Number: +61 7 3222 0341
Email: zac.dullard@au.gt.com
You can also access information which may assist you on the following websites:
• ARITA at www.arita.com.au/creditors
• ASIC at www.asic.giv.au (search for “insolvency information sheets”).
Muggeridge Constructions Pty Ltd (In Liquidation) – Remuneration Approval Report 10
Schedule 1 – Resolution 1 Summary Table
Employee PositionAverage $/Hr
excl. GSTTotal Hrs
Total Cost ($) excl GST
Hrs ($) Hrs ($) Hrs ($) Hrs ($) Hrs ($)
Graham Killer Partner 620 7.20 4,464.00 1.10 682.00 0.00 - 3.10 1,922.00 0.00 - 3.00 1,860.00 Michael McCann Partner 620 0.50 310.00 0.00 - 0.00 - 0.50 310.00 0.00 - 0.00 - Dean Law rence Manager 490 15.10 7,399.00 6.40 3,136.00 1.40 686.00 6.20 3,038.00 0.10 49.00 1.00 490.00 Zac Dullard Senior Associate 385 55.00 21,175.00 13.00 5,005.00 6.40 2,464.00 21.80 8,393.00 3.80 1,463.00 10.00 3,850.00 Kegan Nash Senior Associate 385 2.00 770.00 2.00 770.00 0.00 - 0.00 - 0.00 - 0.00 - Barbara Proberts Paraprofessional 300 41.10 12,330.00 3.70 1,110.00 3.00 900.00 13.70 4,110.00 2.00 600.00 18.70 5,610.00 Tanya Brow n Administrator 245 4.40 1,078.00 1.10 269.50 0.00 - 3.30 808.50 0.00 - 0.00 - Lily Darw in Associate 205 0.40 82.00 0.00 - 0.00 - 0.00 - 0.00 - 0.40 82.00 Elaine Milton Administrator 125 0.80 100.00 0.80 100.00 0.00 - 0.00 - 0.00 - 0.00 - Total Time Incurred 126.50 47,708.00 28.10 11,072.50 10.80 4,050.00 48.60 18,581.50 5.90 2,112.00 33.10 11,892.00 GST 4,770.80
52,478.80
Investigations
Total Remuneration Sought (Incl. GST)
Muggeridge Constructions Pty Ltd (In Liquidation)Task Area
Admin Assets Creditors Employees
Muggeridge Constructions Pty Ltd (In Liquidation) – Remuneration Approval Report 11
Schedule 2 – Resolution 1 Table of major tasks for remuneration The below table provides a description of the work undertaken in each major task area for the period 19 September 2019 to 30 November 2019.
Task Area General Description Includes
Assets
10.80 hours
$4,050.00
Plant and Equipment Liaising with Director to secure Motor Vehicle
Obtain desktop valuation of assets
Reviewing asset listings
Assets subject to specific charges
Liaise with Secured Party to understand amount owing
Disclaim assets
Debtors Reviewing and assessing debtors’ ledgers
Reviewing and assessing intercompany loans
Issue demand letters for intercompany loans
Leasing Reviewing leasing documents
Liaising with owners/lessors
Tasks associated with disclaiming leases
Creditors
48.60 hours
$18,581.50
Creditor Enquiries, Requests & Directions
Receive and respond to creditor enquiries
Maintaining creditor request log
Review and prepare initial correspondence to creditors and their representatives
Documenting
Considering reasonableness of creditor requests
Compiling information requested by creditors
Retention of Title Claims Search to the PPSR register
Notify PMSI creditors identified from PPSR register
Receive completed retention of title claim form
Maintain retention of title file
Secured creditor reporting Notifying PPSR registered creditors of appointment
Responding to secured creditor’s queries
Creditor reports Review and prepare initial correspondence to creditors
Preparing Statutory Report by Liquidator
Dealing with proofs of debt Receipting and filing POD
Corresponding with OSR and ATO regarding POD
Employees
5.90 hours
$2,112.00
Employees enquiries
Review and prepare correspondence to creditors and their representatives via facsimile, email and post
Calculation of entitlements Reviewing employee files and company’s books and records
Reviewing superannuation accounts
Other employee issues Correspondence with Child Support
Correspondence with Centrelink
Muggeridge Constructions Pty Ltd (In Liquidation) – Remuneration Approval Report 12
Task Area General Description Includes
Investigation
33.10 hours
$11,892.00
Conducting investigation Collection of company books and records
Reviewing company’s books and records
Review and preparation of company nature and history
Conducting and summarising statutory searches
Preparation of comparative financial statements
Preparation of deficiency statement
Review of specific transactions and liaising with directors regarding certain transactions
Liaising with directors regarding certain transactions
Preparation of investigation file
Litigation / Recoveries Internal meetings to discuss status of litigation
Preparing brief to solicitors
Liaising with solicitors regarding recovery actions
Administration
28.10 hours
$11,072.50
Correspondence Multiple correspondences with various parties
Document maintenance/file review/checklist
First month administration reviews
Filing of documents
File reviews
Insurance Identification of potential issues requiring attention of insurance specialists
Correspondence with insurer regarding initial and ongoing insurance requirements
Bank account administration Requesting bank statements
Bank account reconciliations
ASIC Form 524 and other forms Preparing and lodging ASIC forms including 505
ATO and other statutory reporting
Notification of appointment
Planning / Review Discussions regarding status of liquidation
Total 126.50 hours $47,708.00
Administration Assets Creditors Employees Investigations
Total
28.10 hours 10.80 hours 48.60 hours
5.90 hours 33.10 hours
$11,072.50 $ 4,050.00 $18,581.50 $ 2,112.00 $11,892.00 $47,708.00
Muggeridge Constructions Pty Ltd (In Liquidation) – Remuneration Approval Report 13
Schedule 3 – Resolution 2 Table of major tasks for remuneration The below table provides a description of the work undertaken in each major task area for the period 1 December 2019 to Finalisation of the Liquidation
Task Area General Description Includes
Assets
$5,000
Debtors Reviewing and assessing debtors’ ledgers
Reviewing and pursuing intercompany loans
Liaising with debt collectors and solicitors
Investigations Further investigations surrounding pre appointment asset transfers
Creditors
$10,000
Creditor Enquiries, Requests & Directions
Receive and respond to creditor enquiries
Maintaining creditor request log
Documenting
Considering reasonableness of creditor requests
Compiling information requested by creditors
Retention of Title Claims Maintain retention of title file
Adjudicate retention of title claim
Forward correspondence to claimant notifying outcome of adjudication
Secured creditor reporting Responding to secured creditor’s queries
Creditor reports Prepare statutory report to creditors
Preparing any further reports to creditors
Dealing with proofs of debt Adjudicate proof of debts if required
Meeting of Creditors Hold meeting should it be required
Proposals to Creditors Preparing proposal notices and voting forms
Forward notice of proposal to all known creditors
Reviewing votes and determining outcome of proposal
Preparation and lodgement of proposal outcome with ASIC
Muggeridge Constructions Pty Ltd (In Liquidation) – Remuneration Approval Report 14
Employees
$5,000
Employees enquiries
Receive and follow up employee enquiries via telephone
Preparation of letters to employees advising of their entitlements and options available
Receive and prepare correspondence in response to employee’s objections to leave entitlements
Calculation of entitlements Calculating employee entitlements
Reviewing employee files and company’s books and records
Reconciling superannuation accounts
Employee dividend (if applicable)
Correspondence with employees regarding dividend
Correspondence with ATO regarding SGC proof of debt
Calculating dividend rate
Preparing dividend file
Advertising dividend notice
Preparing distribution
Receipting POD
Adjudicating POD
Ensuring PAYG is remitted to ATO
Investigations
$10,000
Conducting investigation Reviewing company’s books and records
Preparation of deficiency statement
Review of specific transactions and liaising with directors regarding certain transactions
Liaising with directors regarding certain transactions
Preparation of investigation file
Lodgement of investigation with the ASIC
Preparation and lodgement of supplementary report if required
Litigation / Recoveries Liaising with solicitors regarding recovery actions
Attending to negotiations
Attending to settlement matters
ASIC reporting Preparing statutory investigation reports
Preparing affidavits seeking non-lodgement assistance
Liaising with ASIC
Muggeridge Constructions Pty Ltd (In Liquidation) – Remuneration Approval Report 15
Administration
$5,000
Correspondence Correspondence with various parties
Document maintenance/file review/checklist
Six monthly administration reviews
Filing of documents
File reviews
Updating checklists
Bank account administration Preparing correspondence opening and closing accounts
Bank account reconciliations
Correspondence with bank regarding specific transfers
ASIC Form 5602 and other forms
Preparing and lodging ASIC forms including 505, 5602, 911 etc
Correspondence with ASIC regarding statutory forms
Finalisation Notifying ATO of finalisation
Cancelling ABN / GST / PAYG registration
Completing checklists
Finalising WIP
Planning / Review Discussions regarding status of administration
Books and records / storage Dealing with records in storage
Sending job files to storage
Total $35,000
Administration Assets Creditors Employees Investigations
Total
$ 5,000 $ 5,000 $10,000 $ 5,000 $10,000
$35,000
Muggeridge Constructions Pty Ltd (In Liquidation) – Remuneration Approval Report 16
Schedule 4 – Scale of Rates
FY 2020
Levels Brisbane
Partner $620
Principal $615
Director $565
Senior Manager $515
Manager $490
Senior Associate $385 - $420
Associate $250 - $330
Paraprofessional $300
Undergraduate $205
PA / EA $200 - $245
[Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389]
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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 member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients.
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Liability limited by a scheme approved under Professional Standards Legislation.
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Statutory Report by Liquidator 14
Proposal Forms
Appendix C
19 December 2019
NOTICE OF PROPOSAL TO CREDITORS Muggeridge Constructions Pty Ltd (In Liquidation) ACN 130 842 572 (“the Company”)
Proposal for creditor approval
That the remuneration of the Liquidators, their partners and staff, for the period 19 September 2019 to 30 November 2019, calculated at the hours spent at the rates detailed in the Remuneration Approval Report dated 6 December, is approved for payment in the amount of $47,708, plus GST, to be drawn from available funds immediately or as funds become available.
Reasons for the proposal and the likely impact it will have on creditors if it is passed
The proposal is being put to creditors to approve remuneration as allowed under law.
The proposal if passed will minimise the cost of approving remuneration to the Court Liquidation, which would otherwise require a meeting of creditors or court application to be approved – which can be costly.
Remuneration of the Liquidators is to be paid in priority to other claims under the Corporations Act. This ensures that when there are sufficient funds, the Liquidators receives payment for the work done to recover assets, investigate the company’s affairs, report to creditors and ASIC and distribute any available funds. Even if creditors approve our remuneration, this does not guarantee that we will be paid, as we are only paid if sufficient assets are recovered.
If sufficient assets are recovered, there may be funds available to pay a dividend to creditors, however this is affected by many variables including the value of assets and complexity of realising those assets, the level of creditor enquiries, the priority of claims (including employee claims) and the total value of creditor claims to be admitted to participate in a dividend.
Our remuneration approval report, which has been provided with this notice provides more detailed information on the remuneration we are seeking to be approved.
Vote on proposal
Creditors have the option of approving, not approving or objecting to the proposal being resolved without a meeting of creditors. Please select the appropriate Yes, No or Object box referred to below:
Yes I approve the proposal
No I do not approve the proposal
Object I object to the proposal being resolved without a meeting of creditors
Your claim against the Company must be admitted for the purposes of voting by the Court Liquidation for your vote to count. Please select the option that applies:
I have previously submitted a proof of debt form and supporting documents
I have enclosed a proof of debt form and supporting documents with this proposal form
Creditor details
Name of creditor: ACN / ABN (if applicable):
I am not a related creditor of the Company.
I am a related creditor of the Company, relationship: .
Address: __________________________________________________________________________________
Name of creditor / authorised person: __________________________________________________
Signature: _____________________________ Date:__________________________
Please complete this document and return with any supporting documents by no later than Wednesday 15 January 2020 for your vote to be counted, by email to Zac Dullard at zac.dullard@au.gt.com. If you have any questions please call +61 7 3222 0341.
Completed forms may also be sent by post attention to Zac Dullard at GPO Box 1008, Brisbane QLD 4001, although you should ensure this is
sent with sufficient time to arrive by the date the vote closes, which we cannot guarantee.
19 December 2019
NOTICE OF PROPOSAL TO CREDITORS Muggeridge Constructions Pty Ltd (In Liquidation) ACN 130 842 572 (“the Company”)
Proposal for creditor approval
That the future remuneration of the Liquidators for the period from 1 December 2019 to finalisation, is determined at a sum equal to the cost of time spent by the Liquidators and their partners and staff, calculated at the hourly rates as detailed in the Remuneration Approval Report dated 6 December 2019, that may be increased at a rate of up to 10% at 1 July each year (rounded to the nearest $10), up to a capped amount of $35,000, plus GST, and that the Liquidators can draw the remuneration from available funds as time is incurred on a monthly basis or as funds become available.
Reasons for the proposal and the likely impact it will have on creditors if it is passed
The proposal is being put to creditors to approve remuneration as allowed under law.
The proposal if passed will minimise the cost of approving remuneration to the Court Liquidation, which would otherwise require a meeting of creditors or court application to be approved – which can be costly.
Remuneration of the Liquidators is to be paid in priority to other claims under the Corporations Act. This ensures that when there are sufficient funds, the Liquidators receives payment for the work done to recover assets, investigate the company’s affairs, report to creditors and ASIC and distribute any available funds. Even if creditors approve our remuneration, this does not guarantee that we will be paid, as we are only paid if sufficient assets are recovered.
If sufficient assets are recovered, there may be funds available to pay a dividend to creditors, however this is affected by many variables including the value of assets and complexity of realising those assets, the level of creditor enquiries, the priority of claims (including employee claims) and the total value of creditor claims to be admitted to participate in a dividend.
Our remuneration approval report, which has been provided with this notice provides more detailed information on the remuneration we are seeking to be approved.
Vote on proposal
Creditors have the option of approving, not approving or objecting to the proposal being resolved without a meeting of creditors. Please select the appropriate Yes, No or Object box referred to below:
Yes I approve the proposal
No I do not approve the proposal
Object I object to the proposal being resolved without a meeting of creditors
Your claim against the Company must be admitted for the purposes of voting by the Court Liquidation for your vote to count. Please select the option that applies:
I have previously submitted a proof of debt form and supporting documents
I have enclosed a proof of debt form and supporting documents with this proposal form
Creditor details
Name of creditor: ACN / ABN (if applicable):
I am not a related creditor of the Company.
I am a related creditor of the Company, relationship: .
Address: __________________________________________________________________________________
Name of creditor / authorised person: __________________________________________________
Signature: _____________________________ Date:__________________________
Please complete this document and return with any supporting documents by no later than Wednesday 15 January 2020 for your vote to be counted, by email to Zac Dullard at zac.dullard@au.gt.com. If you have any questions please call +61 7 3222 0341.
Completed forms may also be sent by post attention to Zac Dullard at GPO Box 1008, Brisbane QLD 4001, although you should ensure this is
sent with sufficient time to arrive by the date the vote closes, which we cannot guarantee.
19 December 2019
NOTICE OF PROPOSAL TO CREDITORS Muggeridge Constructions Pty Ltd (In Liquidation) ACN 130 842 572 (“the Company”)
Proposal for creditor approval
That the internal disbursements of the Liquidators, their partners and staff for the period 19 September 2019 to 30 November 2019 be approved in the same of $95.04 plus GST and that the Liquidators can drawn from available funds immediately or as required.
Reasons for the proposal and the likely impact it will have on creditors if it is passed
Disbursements have a priority to other claims under the Corporations Act. Certain internal disbursements, being the reimbursement of costs related to the Court Liquidation incurred by our firm and staff, must be approved by creditors under the law. These disbursements are charged on a reasonable commercial basis, the details of which are outlined in detail in our Remuneration Approval Report. The proposal if passed will allow the reimbursement of reasonably commercial expenses, properly incurred for the Court Liquidation to our firm and its staff.
Vote on proposal
Creditors have the option of approving, not approving or objecting to the proposal being resolved without a meeting of creditors. Please select the appropriate Yes, No or Object box referred to below:
Yes I approve the proposal
No I do not approve the proposal
Object I object to the proposal being resolved without a meeting of creditors
Your claim against the Company must be admitted for the purposes of voting by the Court Liquidation for your vote to count. Please select the option that applies:
I have previously submitted a proof of debt form and supporting documents
I have enclosed a proof of debt form and supporting documents with this proposal form
Creditor details
Name of creditor: ACN / ABN (if applicable):
I am not a related creditor of the Company.
I am a related creditor of the Company, relationship: .
Address: __________________________________________________________________________________
Name of creditor / authorised person: __________________________________________________
Signature: _____________________________ Date:__________________________
Please complete this document and return with any supporting documents by no later than Wednesday 15 January 2020 for your vote to be counted, by email to Zac Dullard at zac.dullard@au.gt.com. If you have any questions please call +61 7 3222 0341.
Completed forms may also be sent by post attention to Zac Dullard at GPO Box 1008, Brisbane QLD 4001, although you should ensure this is
sent with sufficient time to arrive by the date the vote closes, which we cannot guarantee.
19 December 2019
NOTICE OF PROPOSAL TO CREDITORS Muggeridge Constructions Pty Ltd (In Liquidation) ACN 130 842 572 (“the Company”)
Proposal for creditor approval
That the internal disbursements claimed by our firm for the period 1 December 2019 to Finalisation, calculated at the rates detailed in the Remuneration Approval Report dated 6 December 2019, are approved up to a capped amount of $1,000, excluding GST, and that the Joint and Several Liquidators can draw the disbursements from available funds as incurred or as funds become available.
Reasons for the proposal and the likely impact it will have on creditors if it is passed
Disbursements have a priority to other claims under the Corporations Act. Certain internal disbursements, being the reimbursement of costs related to the Court Liquidation incurred by our firm and staff, must be approved by creditors under the law. These disbursements are charged on a reasonable commercial basis, the details of which are outlined in detail in our Remuneration Approval Report. The proposal if passed will allow the reimbursement of reasonably commercial expenses, properly incurred for the Court Liquidation to our firm and its staff.
Vote on proposal
Creditors have the option of approving, not approving or objecting to the proposal being resolved without a meeting of creditors. Please select the appropriate Yes, No or Object box referred to below:
Yes I approve the proposal
No I do not approve the proposal
Object I object to the proposal being resolved without a meeting of creditors
Your claim against the Company must be admitted for the purposes of voting by the Court Liquidation for your vote to count. Please select the option that applies:
I have previously submitted a proof of debt form and supporting documents
I have enclosed a proof of debt form and supporting documents with this proposal form
Creditor details
Name of creditor: ACN / ABN (if applicable):
I am not a related creditor of the Company.
I am a related creditor of the Company, relationship: .
Address: __________________________________________________________________________________
Name of creditor / authorised person: __________________________________________________
Signature: _____________________________ Date:__________________________
Please complete this document and return with any supporting documents by no later than Wednesday 15 January 2020 for your vote to be counted, by email to Zac Dullard at zac.dullard@au.gt.com. If you have any questions please call +61 7 3222 0341. Completed forms may also be sent by post attention to Zac Dullard at GPO Box 1008, Brisbane QLD 4001, although you should ensure this is
sent with sufficient time to arrive by the date the vote closes, which we cannot guarantee.
19 December 2019
NOTICE OF PROPOSAL TO CREDITORS Muggeridge Constructions Pty Ltd (In Liquidation) ACN 130 842 572 (“the Company”)
Proposal for creditor approval
That the creditors direct the Joint and Several Liquidators to apply to ASIC when appropriate or upon finalisation of the liquidation for consent to destroy books within the retention period in accordance with IPS 70-35.
Reasons for the proposal and the likely impact it will have on creditors if it is passed
The proposal is being put to creditors to allow records to be destroyed upon finalisation of the liquidation, with ASIC consent. Liquidators are otherwise required to maintain all books for 5 years which represents a significant cost to the liquidation. By passing the proposal, and subject to ASIC’s consent, much of this cost can be avoided. The Liquidators will still retain information, and notably financial information, required to be retained for certain periods under other laws, e.g. taxation laws.
Vote on proposal
Creditors have the option of approving, not approving or objecting to the proposal being resolved without a meeting of creditors. Please select the appropriate Yes, No or Object box referred to below:
Yes I approve the proposal
No I do not approve the proposal
Object I object to the proposal being resolved without a meeting of creditors
Your claim against the Company must be admitted for the purposes of voting by the Court Liquidation for your vote to count. Please select the option that applies:
I have previously submitted a proof of debt form and supporting documents
I have enclosed a proof of debt form and supporting documents with this proposal form
Creditor details
Name of creditor: ACN / ABN (if applicable):
I am not a related creditor of the Company.
I am a related creditor of the Company, relationship: .
Address: __________________________________________________________________________________
Name of creditor / authorised person: __________________________________________________
Signature: _____________________________ Date:__________________________
Please complete this document and return with any supporting documents by no later than Wednesday 15 January 2020 for your vote to be counted, by email to Zac Dullard at zac.dullard@au.gt.com. If you have any questions please call +61 7 3222 0341.
Completed forms may also be sent by post attention to Zac Dullard at GPO Box 1008, Brisbane QLD 4001, although you should ensure this is
sent with sufficient time to arrive by the date the vote closes, which we cannot guarantee.
Statutory Report by Liquidator 15
Form 535 – Proof of Debt
Appendix D
FORM 535 subregulation 5.6.49(2)
Corporations Act 2001
FORMAL PROOF OF DEBT OR CLAIM (GENERAL FORM)
To the Liquidators of Muggeridge Constructions Pty Ltd (In Liquidation) ACN 130842572 (the “Company”)
1. This is to state that the company was on 19 September 2019, and still is, justly and truly indebted to:
full name, ABN 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 dollars and cents
Particulars of the debt are:
Date Consideration Amount Remarks (state how the debt arose) (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 Due Date
$
3. Signed by (select option):
I am the creditor personally.
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.
I am the creditor's agent authorised in writing to make this statement in writing. I know the debt was incurred for the consideration stated and that the debt, to the best of my knowledge and belief, remains unpaid and unsatisfied.
Signature: Dated:
Name: Occupation:
Address:
RECEIVE REPORTS BY EMAIL Yes No
Do you wish to receive all future reports and correspondence from our office via email?
Email:……………………………………………………………………………
Statutory Report by Liquidator 16
Information sheet: Proposals without meeting
Appendix E
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