annual report to creditors - ferrier hodgson/media/ferrier/files/documents... · annual report to...

BJ Jarrad Pty Ltd (In Liquidation)

ACN 008 026 533 (BJ Jarrad)

Jarrad Equipment Holdings Pty Ltd (In Liquidation)

ACN 137 623 191 (JEH)

Collectively “the Companies”

Annual Report to Creditors

As at 4 September 2015 in accordance with Section 508(1)(b)(ii) of the Corporations Act 2001 (the Act)

22 October 2015

Annual Report to Creditors 22 October 2015

Table of Contents

Section Page

1 Introduction ....................................................................... 1

2 Annual meeting of creditors ............................................... 1

3 Conduct of the liquidation to date ...................................... 2

3.1 Liquidators’ acts and dealings to date ..................................... 2

3.2 Liquidators’ realisations to date ............................................... 3

4 Investigations into the Companies’ affairs ....................... 11

4.1 Section 533 reports ............................................................... 11

4.2 Litigation Funding .................................................................. 12

4.3 Public Examinations .............................................................. 13

4.4 Insolvent Trading or Other Claims......................................... 14

4.5 Unfair preferences................................................................. 14

4.6 Loan Account ........................................................................ 15

5 Future conduct of the liquidation ..................................... 15

5.1 Outstanding matters to be addressed ................................... 15

5.2 Estimated completion of the winding up ................................ 16

6 Estimate of return to creditors ......................................... 16

7 Further queries ................................................................ 18

Glossary of terms ............................................................ 19

Annexure

A Summary of receipts and payments – BJ Jarrad Pty Ltd (In Liquidation)

B Summary of receipts and payments – Jarrad Equipment Holdings Pty Ltd (In Liquidation)

Annual Report to Creditors 22 October 2015| Page 1

1 Introduction

We refer to our appointment as Joint and Several Voluntary Administrators of the Companies on 31 July 2014 and to our subsequent appointment as Joint and Several Liquidators pursuant to resolutions passed at a meeting of creditors of the Companies held concurrently on 4 September 2014.

Pursuant to Section 508(3) of the Act, we now take this opportunity to report to you on the liquidation of the Companies and, in particular, as to:

An account of the Liquidators’ acts and dealings in the conduct of the winding up of the Companies from the commencement of the liquidation to date;

The Liquidators’ acts and dealings that remain to be carried out to complete the winding up of the Companies;

Estimated return to creditors from the winding up of the Companies; and

An estimate of when the winding up of the Companies will be completed.

As outlined at Section 4, our reports pursuant to Section 533 of the Act have been prepared and lodged with the Australian Securities and Investments Commission (ASIC) on 19 May 2015 detailing our findings in respect of our investigations into the affairs of BJ Jarrad and JEH, the conduct of the Director of both Companies and any breaches of the law. The reports are privileged and we cannot therefore provide creditors with a copy. However, we advise that no statement in this report is inconsistent with our Section 533 reports lodged with ASIC.

ASIC subsequently requested that we submit a Supplementary Report pursuant to Section 533(2) of the Act for BJ Jarrad. The Supplementary Report will be issued to ASIC in due course. ASIC has advised us that it does not intend to take any action in relation to the matters raised in our JEH report.

At this point in time, there are insufficient funds available to permit payment of a dividend to any class of creditor for either of the Companies. This is discussed further at Sections 3, 4 and 6 of this report. Any return to priority and / or non-priority unsecured creditors is solely dependent on the outcome of our investigations and successful recovery of voidable transactions which may be pursued by the Liquidators pursuant to Part 5.7B of the Act (discussed further at Sections 4 and 6 of this report).

Given the matters discussed at Sections 4 and 5 of this report, we estimate a further two years or more may be required to finalise the winding up of the Companies.

2 Annual meeting of creditors

In accordance with the provisions of Section 508(4) of the Act, we advise that:

Having regard to the current circumstances of the Companies, and in the interests of costs, we have decided not to convene an annual meeting of creditors for either of the Companies pursuant to Section 508(1)(b)(i) of the Act;

We have prepared this report setting out an account of our acts and dealings and the conduct of the winding up for the Companies for the 12 months ended 4 September 2015, being the first 12 months of the liquidations; and

We have lodged a copy of this report with ASIC.

As previously advised, at the second meeting of creditors held in the Voluntary Administration period, the following creditors were elected to the Committee of Inspection (COI) for BJ Jarrad:


Creditor Represented by

Civil Pipelines Australia Pty Ltd (Civil Pipelines) (1)

Mr James Rankin

Big Chief Hire Pty Ltd Mr Joe Tripodi

Allused Pty Ltd Mr Gary Silcock

Willmurph Pty Ltd trading as Flexable Force Mr Peter Murphy

(1) We note that on 4 March 2015, Civil Pipelines was placed into Voluntary Administration creating a casual vacancy on the COI pursuant to Section 550(2) of the Act.

Since the commencement of the liquidation, we have regularly consulted with the COI, including holding meetings of the COI on 26 September 2014, 1 May 2015 and 10 September 2015. Minutes of these meetings have been lodged with ASIC. With the approval of the COI on 10 September 2015 pursuant to Section 550(6) of the Act, the casual vacancy created by Civil Pipelines was filled by a representative of the Commonwealth of Australia’s Department of Employment (Commonwealth). This matter is discussed further at Section 4.2 of this report.

3 Conduct of the liquidation to date

3.1 Liquidators’ acts and dealings to date

Since our appointment as Liquidators of the Companies’, the following matters have been attended to:

Concluded negotiations with interested parties in relation to a potential sale of the Companies’ assets and / or Work in Progress (WIP), however a sale was not able to be achieved;

Finalising BJ Jarrad’s existing contracts with SA Water in order to maximise the recovery of debtors and WIP and return of bank guarantees;

Liaising with SA Water, Adelaide Hills Council and Bardavcol in relation to the return of bank guarantees;

Ongoing correspondence, telephone attendances and meetings with SA Water regarding completion of the WIP;

Liaising with SA Water regarding handover of contracts, practical completion and the defects liability period;

Liaising with SA Water regarding unpaid invoices raised during our administration of BJ Jarrad relating to the Balhannah/Verdun contract;

Ongoing correspondence with Baulderstone Abigroup Joint Venture (BAJV) in relation to the Southern Expressway Subcontracts, including instructing solicitors in relation to an independent adjudication of BJ Jarrad claims against BAJV and subsequent negotiations with BAJV regarding settlement of the claims;

Sale of the Companies’ plant and equipment by public auctions held in December 2014 and February 2015 and accounting to secured creditors in relation to same;

Closure of the Companies’ head office in December 2014;

Terminating all remaining employees of BJ Jarrad;

Collection, listing and review of the books and records of the Companies;

Liaising with former employees and the Commonwealth in relation to verification and distribution of amounts advanced pursuant to the Fair Entitlements Guarantee Act (FEG);

Communicating with the secured creditor of BJ Jarrad and creditors with security interests in relation to JEH;


Communicating with unsecured creditors of the Companies;

Communicating with the COI for BJ Jarrad (as indicated above);

Detailed investigation into the affairs of the Companies and preparation and lodgement of our reports pursuant to Section 533 of the Act with ASIC;

Liaising with solicitors in relation to pursuit of unfair preference claims;

Reviewing draft letters of demand to recipients of unfair preference claims;

Negotiating settlements with recipients of unfair preference claims including review and execution of settlement deeds (where applicable);

Reviewing draft proceedings in respect of several unfair preference claims;

Preparation of substantial legal brief and liaising with solicitors and Senior Counsel in relation to public examinations;

Preparation of applications to litigation funders and subsequent negotiations and correspondence in relation to funding for the purpose of conducting public examinations and funding of potential claims that may arise thereafter;

Commencing the public examination process in conjunction with our solicitors and Senior Counsel; and

Attending to statutory requirements, as required.

3.2 Liquidators’ realisations to date

3.2.1 Summary of receipts and payments

BJ Jarrad

A summary of the receipts and payments in the liquidation of BJ Jarrad to 4 September 2015 is attached as Annexure A. Creditors are advised that, pursuant to Section 539(5) of the Act, the Liquidators’ account of receipts and payments can be inspected at the offices of Ferrier Hodgson, Level 6, 81 Flinders Street, Adelaide, South Australia, during business hours or obtained from ASIC.

Set out in the table below is a summary of our receipts and payments to 4 September 2015 as compared to the ERV Low estimate which was set out in our Administrators’ report dated 26 August 2014 prepared pursuant to Section 439A of the Act (Section 439A Report):

$000s

GST exclusive

Note ERV Low

Section 439A Report

Actual to 4 September

2015 (1)

Receipts

Trade and Other Receivables 1 722 516

WIP 2 972 (125)

Inventories 3 Not Disclosed 27

Plant and Equipment / Return to Secured Creditor (2)

4 Not Disclosed -

Voidable Transactions 5 Unknown 275

Advances from FEG / Priority Creditor Claims (3)

6 - -

Total Receipts Not Disclosed 693


$000s

GST exclusive

Note ERV Low

Section 439A Report


2015 (1)

Payments

Legal Fees 7 (120) (78)

Administrators’ Remuneration & Disbursements 8 (300) (307)

Liquidators’ Remuneration & Disbursements 8 (350) (220)

Other 9 (15) (3)

Net GST / PAYG to be refunded - (12)

Total Payments (785) (620)

Net Receipts 10 Not Disclosed 73

(1) Includes receipts and payments for the Voluntary Administration period from 31 July 2014 to 3 September 2014

(2) Net plant and equipment proceeds were remitted to BJ Jarrad’s secured creditor pursuant to their General Security Agreement (GSA) with no surplus available to BJ Jarrad’s unsecured creditors

(3) All funds advanced by the Commonwealth pursuant to FEG have been acquitted to employees, net of PAYG withholding tax which has been paid to the Australian Taxation Office (ATO)

We make the following comments in relation to the above table:

Note 1 – Trade and Other Receivables

As at the date of our appointment as Voluntary Administrators, BJ Jarrad had Trade Receivables of approximately $2.09 million comprising SA Water ($722,000) and BAJV ($1.37 million). The table below details the amounts recovered in respect of the Trade Receivables compared to the ERV Low estimate in our Section 439A Report:-

$000s

Client

ERV Low

Section 439A Report

Actual to 4 September 2015

SA Water 722 722

BAJV - (206)

Total Debtor Receipts 722 516

SA Water

Following our appointment as Voluntary Administrators, SA Water paid to BJ Jarrad the pre-appointment debt of $722,000 in full to enable BJ Jarrad to continue to complete its WIP for SA Water which is further discussed at Note 2 below.

BAJV

As outlined in our Section 439A Report, as at the date of our appointment as Voluntary Administrators, BJ Jarrad’s records indicated that BAJV owed an amount of $1.37 million for works completed by BJ Jarrad in relation to the Southern Expressway Drainage Subcontract and ITS Subcontract. Based on our review of the two Subcontracts, we estimated that $934,000 was due and payable by BAJV.

Following our appointment and in good faith to ensure completion of the Subcontracts for BAJV and in an attempt to have the debtor amounts paid, BJ Jarrad continued works in relation to the two Subcontracts for BAJV incurring costs (mainly relating labour and equipment hire) which totalled approximately $120,000. BAJV ultimately took steps to terminate the two Subcontracts which meant that BJ Jarrad had to cease all works.


BAJV then lodged a Proof of Debt (POD) in the administration in the amount of $2.29 million in relation to:

Direct payments made by BAJV to BJ Jarrad suppliers;

The balance of contract works to completion; and

Liquidated damages.

As we were in dispute with BAJV in relation to the respective obligations of BJ Jarrad and BAJV under the Subcontracts, including amounts due, we engaged solicitors to prepare an application for the matter to be independently adjudicated. The outcome of two independent adjudications was that BAJV only owed BJ Jarrad approximately $10,000. This outcome was very disappointing from BJ Jarrad’s perspective given the amount of time and cost incurred pursuing the adjudications and that we considered that $934,000 was due and payable by BAJV on our appointment (notwithstanding the BAJV counter claim of $2.29 million).

Despite our solicitors advising us that there were strong grounds to appeal in respect of certain aspects of the adjudications, having regard to the costs we had already incurred of $86,000 (including the fees payable to the independent adjudicator), we considered that it was not in creditors’ interests for us to incur further costs pursuing BAJV via legal proceedings or an appeal of the adjudication. Rather, we approached BAJV directly in order to negotiate a settlement. BAJV was a willing participant in the settlement negotiations.

As a result of the negotiations and with input from the COI, we recently settled the matter with BAJV, which amongst other things, resulted in BAJV having to pay the sum of approximately $18,000 to BJ Jarrad with BAJV agreeing to release BJ Jarrad (and vice versa) from all claims (eg payment to BJ Jarrad suppliers, project completion costs and liquidated damages), whether or not arising from the adjudications, other than any Defects (known or unknown) that may arise in respect of the Subcontracts. At this stage we have not been notified of any Defects by BAJV.

Note 2 – WIP

As at the date of our appointment, BJ Jarrad had WIP to collect of approximately $5.8 million, representing pre-appointment July claims totalling $1.2 million and unbilled contract sums totalling approximately $4.6 million.

Our intention was to complete this WIP while the Companies’ assets were advertised for sale in order to maximise the potential value achieved from a sale of the Companies’ assets and to maximise recovery of SA Water debtor/WIP amounts and return of bank guarantees.

At the date of our appointment, BJ Jarrad estimated the costs to complete the WIP would be in the order of approximately $4.9 million, resulting in a net recovery from WIP of approximately $0.9 million. We utilised this information for the purpose of our estimated ERV Low outlined in our Section 439A Report.

Our actual trading result was adverse to the estimated ERV Low by approximately $1.1 million (after allowing for approved and paid variations) as detailed in the table below:

$000s ERV Low

Section 439A Report

Actual to 4 September 2015

July Claims 1,200 1,319

Balance of Contract Sum (including variations) 4,641 5,317

Costs Incurred (including Overheads) (4,869) (6,761)

Total WIP 972 (125)


The reason for the adverse trading outcome was due to the following factors:

The likelihood that tenders submitted by BJ Jarrad prior to our appointment were under-priced in order to secure contracts following several months of trading losses due to low levels of activity;

The likelihood that prior to our appointment, WIP had been invoiced “in advance” in order to bring forward cash flows, resulting in cash being collected and utilised ahead of contract costs being incurred;

Delays in completion of contracts by up to 3 months in some instances resulting in significant increases in labour costs and equipment hire charges incurred that were not envisaged in BJ Jarrad’s initial estimates provided to us;

Having to make several payments of commercial necessity in order to secure the services of critical creditors to ensure that contracts could be completed; and

The requirement to maintain a level of corporate overhead costs to support the WIP, with no new work being secured in order to absorb some of these overhead costs.

We note that there is still a final invoice rendered to SA Water during our administration of BJ Jarrad for $61,000 in relation to the Balhannah/Verdun contract which has not yet been paid by SA Water (and therefore is not factored into the above actual analysis). We consider this invoice is overdue by SA Water. SA Water has advised a number of defects in relation to the Balhannah/Verdun contract which is being completed such that an accounting of the Balhannah/Verdun contract can be completed and determination of the payment of the remaining $61,000 made. We are in contact with SA Water in respect of the $61,000 owed and anticipate a resolution in due course.

Note 3 – Inventories

Following our appointment, Mason Gray Strange (MGS) were engaged by us to value the Companies’ inventories and plant and equipment on a market value for existing use (MV) and auction realisable value (ARV) basis.

The ERV Low was not disclosed in our Section 439A Report given BJ Jarrad’s assets were being advertised for sale as a going concern.

Following our appointment, some of this inventory was utilised to complete the WIP with the balance sold at public auction for, in essence, scrap value. The net amount recovered at auction was approximately $27,000.

Note 4 – Plant and Equipment / Return to Secured Creditor

At the date of our appointment, BJ Jarrad had specialised freehold plant and equipment with a written down book value of approximately $1.0 million as at 30 June 2014. As outlined above, MGS valued the Companies plant and equipment on both a MV and ARV basis. For the purpose of our Section 439A Report, we did not disclose the valuations due to the assets being advertised for sale as a going concern.

As a result of not being able to achieve a sale of the Companies’ business and / or assets (eg the SA Water contracts), we proceeded to engage MGS to conduct public auctions.

BJ Jarrad’s plant and equipment was sold by public auction for $652,000 (exclusive of GST and before costs relating to care, preservation and realisation).

As outlined in our Section 439A Report, Westpac had a registered GSA over all of the assets and undertakings of BJ Jarrad and was owed in the order of approximately $4.9 million at the date of our appointment.


As a result, the net plant and equipment proceeds of approximately $437,000 (after costs of care, preservation and realisation) were paid to Westpac pursuant to their GSA. In addition, we understand that Westpac’s debt has reduced as a result of the following:

Recovery by us of bank guarantees to date totalling $826,000, including from SA Water totalling $796,000; and

Sale of BJ Jarrad’s former premises situated at Royal Park, South Australia following our appointment with a net amount of $2.33 million being paid to Westpac pursuant to guarantee security.

As a result of the above, we understand that Westpac is currently owed approximately $1.5 million (including interest accrued), of which approximately $358,000 relates to bank guarantees still held by SA Water which have not yet been called. We have requested, but not yet received, an accounting of bank guarantees presented by SA Water during our administration and will review the accounting for reasonablessness once it is received.

We understand that Westpac’s debt is secured by mortgages over two residential properties which are owned by or under the control of the Director meaning that we expect Westpac should be repaid in full following realisation of these properties.

Note 5 – Voidable Transactions

As at 4 September 2015, we have recovered unfair preference payments totalling $275,000. Between 4 September 2015 and the date of this report, we have settled further claims totalling $93,024, with $83,024 having been received at the date of this report (with the $10,000 balance due next month). The balance of unfair preference claims being pursued by us is discussed at Section 4.5 of this report.

Note 6 – Advances from FEG / Priority Creditor Claims

Set out in the table below is a summary of the amounts due to priority creditors of BJ Jarrad as at 4 September 2015:

$000s Priority Creditor Claims

Employee entitlements

as at 4 September

2015

Less: amounts

advanced by FEG

Employee entitlements

paid by Liquidators as cost of

winding up

Unpaid employee

entitlements as at 4

September 2015

Wage Subrogation Claim by Westpac 120 - - 120

Wages / Child Support 97 (57) - 40

Superannuation Guarantee Charge (1)

68 - - 68

Annual Leave / Long Service Leave 361 (325) - 36

PILN / Redundancy 565 (507) (12) 46

Total 1,211 (889) (12) 310

(1) Including estimate for Superannuation Guarantee Charge in relation to PILN


Employee claims are afforded a priority of repayment in a winding up pursuant to Section 556 of the Act.


Prior to our appointment, Westpac advanced funds of approximately $120,000 to BJ Jarrad to enable it to meet its payroll obligations. As the advance was for the sole purpose of paying wages, Westpac is afforded a priority of recovery in respect of this advance pursuant to Section 560 of the Act.

Following BJ Jarrad being placed into liquidation and due to BJ Jarrad having insufficient circulating assets, we facilitated the verification and distribution of employee entitlements (excluding superannuation) pursuant to FEG. At the date of this report, the Commonwealth has advanced $889,000 in order to meet claims from 65 former employees. The Commonwealth has a right of subrogation in relation to the amounts advanced. As at the date of this report, the Commonwealth is in the process of adjudicating an additional three employee claims totalling approximately $30,000 which will increase the Commonwealth’s subrogated claim.

The above table has been prepared consistent with the Act which provides that “Excluded Employees”, being company directors, their spouses and relatives, are each restricted to a maximum priority claim of $2,000 for unpaid wages / superannuation and $1,500 for leave entitlements. There is no priority claim for Excluded Employees with respect to redundancy entitlements.

Total priority claims for Excluded Employees are approximately $6,000 in relation to four employees. The non priority claims (including PILN and Redundancy) of these employees totals $208,000 and ranks with all of the other non-priority unsecured claims of BJ Jarrad.

Note 7 – Legal Fees

Excluding the legal fees outlined in Note 1, we have paid $78,000 in legal fees in respect of:

Negotiating various subcontract agreements in relation to completion of BJ Jarrad’s WIP;

Undertaking preliminary analysis in relation to BJ Jarrad’s solvency; and

Pursuing unfair preference claims. We have also incurred (prior to the litigation funding agreement discussed at Section 4.2 commencing) legal and Senior Counsel fees of approximately $40,000 in relation to advice and preparation for the public examinations which is yet to be invoiced to us.

Note 8 – Administrators’ / Liquidators’ Remuneration & Disbursements

The Administrators’ and Liquidators’ remuneration approved and paid to date is set out in the table below:


Period Approved by Amount approved

GST exclusive

Amount paid

GST exclusive

Voluntary Administration

31 July 2014 to 26 August 2014 Creditors 252,919.25 252,919.25

27 August 2014 to 4 September 2014 Creditors 50,000.00 50,000.00

Total approved / paid 302,919.25 302,919.25

Liquidation

Initial estimate of future remuneration for period 4 September 2014 to 3 September 2015

Creditors 150,000.00 150,000.00

Additional remuneration for period 4 September 2014 to 31 March 2015

COI 252,869.75 50,000.00

Further estimate of future remuneration for period 1 April 2015 to 4 September 2015

COI 150,000.00 Nil

Additional remuneration incurred for period 1 April 2015 to 4 September 2015 (capped)

COI 25,000.00 Nil

Estimate of future remuneration for period 5 September 2015 to 31 December 2015

COI 60,157.50 Nil


In addition, disbursements of $4,270.43 have been paid in relation to the Voluntary Administration period and $19,992.57 to date in relation to the Liquidation period.

Note 9 – Other

Other amounts are represented by room hire for the creditors meetings totalling approximately $3,000.

Note 10 – Net Receipts

As at 4 September 2015, BJ Jarrad had cash at bank of approximately $73,000.

JEH

3.2.2 Summary of receipts and payments

A summary of the receipts and payments in the liquidation of JEH to 4 September 2015 is attached as Annexure B. Creditors are advised that, pursuant to Section 539(5) of the Act, the Liquidators’ account of receipts and payments can be inspected at the offices of Ferrier Hodgson, Level 6, 81 Flinders Street, Adelaide, South Australia, during business hours or obtained from ASIC.

Set out in the table below is a summary of our receipts and payments to 4 September 2015 as compared to the ERV Low estimate which was set out in our Section 439A Report:


$000s

GST exclusive

Note ERV Low

Section 439A Report


2015

Receipts

Loan – BJ Jarrad 1 - 2

Plant and Equipment 2 Not Disclosed 585

Hire Purchase Liabilities 2 (2,150) (574)

Total Receipts Not Disclosed 13

Payments

Legal Fees 3 (10) (2)

Administrators’ Remuneration 4 (10) (11)

Liquidators’ Remuneration 4 (20) -

Total Payments (40) (13)

Net Receipts 9 Not Disclosed -


Note 1 - Loan Account – BJ Jarrad

According to the books and records as at 30 June 2014, JEH is owed in the order of $1.6 million by BJ Jarrad. Any recovery of this loan is subject to the outcome of the BJ Jarrad liquidation which is discussed further at Section 6 below.

Note 2 - Plant and Equipment / Hire Purchase Liabilities

All plant and equipment held by JEH was subject to registered security interests in support of hire purchase agreements. With the approval of financiers, this plant and equipment was sold by MGS at public auctions held in December 2014 and February 2015 with the net sale proceeds being remitted to the financiers (after costs of care, preservation and realisation). All financiers suffered a shortfall in relation to their security with the only exception being Macquarie Leasing who was repaid in full with equity of $11,000 being returned to JEH.

We estimate that there is currently a shortfall to these financiers in the order of approximately $607,000. However, this shortfall is likely to increase as not all financiers have lodged PODs.

Note 3 – Legal Fees

We have paid legal fees totalling approximately $2,000 in relation to JEH.

Note 4 – Administrators’ / Liquidators’ Remuneration

The Administrators’ and Liquidators’ remuneration approved and paid to date is set out in the table below:


Period Approved by Amount approved

GST exclusive

Amount paid GST exclusive

Voluntary Administration

31 July 2014 to 26 August 2014 Creditors 8,624.75 8,624.75

27 August 2014 to 4 September 2014 Creditors 2,000.00 2,000.00


Liquidation

Estimate of future remuneration for period 4 September 2014 to 3 September 2015

Creditors 15,000.00 -

Total approved / paid 15,000.00 -

4 Investigations into the Companies’ affairs

Pursuant to Part 5.7B of the Act liquidators are afforded extensive powers to conduct investigations into transactions that are voidable in respect to money, property or other benefits which might be recoverable by a liquidator.

Our investigations have included the following:

Reviewing BJ Jarrad’s accounting software, Levesys, in relation to all transactions with unsecured creditors during the Relation Back Period;

Reviewing BJ Jarrad’s bank statements during the Relation Back Period to identify payments made to unsecured creditors;

Conducting searches of the forensic image taken of BJ Jarrad’s server (including email correspondence) as well as BJ Jarrad’s books and records to identify and extract correspondence with creditors;

Preparation of detailed legal briefs to our solicitors in relation to potential claims;

Reconstructing creditor accounts including undertaking running account balance analysis;

Consideration of legal advice in relation to potential claims;

Liaising with solicitors in relation to pursuit of unfair preference claims;

Reviewing draft letters of demand to recipients of unfair preference claims;

Negotiating settlements with recipients of unfair preference claims including review and execution of settlement deeds (where applicable);

Reviewing draft proceedings in respect of several unfair preference claims;

Preparation of substantial legal brief and liaising with solicitors and Senior Counsel in relation to public examinations;

Preparation of applications to litigation funders and subsequent negotiations and correspondence in relation to funding for the purpose of conducting public examinations and funding of potential claims that may arise thereafter; and

Commencing the public examination process in conjunction with our solicitors and Senior Counsel.

4.1 Section 533 reports

Section 533 of the Act provides that if it appears to the liquidator, in the course of a winding up, that:


(a) a past or present officer or employee or member or contributory may have been guilty of an offence under law in relation to the company;

(b) a person who has taken part in the formation, promotion, administration, management or winding up of the company; or

(i) may have misapplied or retained or may have become liable or accountable for any money or property; or

(ii) may have been guilty of any negligence, default, breach of duty or breach of trust in relation to the company; or

(c) the company is unable to pay its unsecured creditors more than 50 cents in the dollar;

the Liquidator must:-

(d) within 6 months after it so appears to him or her lodge a report with ASIC in respect of the matter and state whether he or she proposes to make an application for an examination or order under Section 597; or

(e) give ASIC such information and give it access to and facilities for inspecting and taking copies of any documents ASIC requires.

Our reports to ASIC pursuant to Section 533 of the Act for BJ Jarrad and JEH were lodged on 19 May 2015. The reports are privileged and we cannot therefore provide creditors with a copy. However, we advise that no statement in this report is inconsistent with our Section 533 reports lodged with ASIC.

On 21 May 2015, ASIC subsequently requested that we complete a Supplementary Report pursuant to Section 533(2) of the Act for BJ Jarrad. The Supplementary Report will be issued to ASIC in due course following our further investigations and the public examinations (refer Section 4.3). ASIC has advised us that it does not intend to take any action in relation to the matters raised in our JEH report.

4.2 Litigation Funding

Given there is currently limited funding available in the liquidation to fund the cost (both the Liquidators’ fees and legal fees) of ongoing investigations and any legal proceedings that may be commenced in relation to an insolvent trading claim or other claims, the Liquidators applied for litigation funding from IMF Bentham Limited (IMF). After commencing the IMF application process, the Liquidators were made aware by the Commonwealth of a newly established FEG Recovery Programme. The FEG Recovery Programme was launched on 1 July 2015 and is designed to provide funding to liquidators to assist with improved recovery of amounts advanced under FEG where a liquidator would not otherwise have the financial resources to pursue a claim (including the funding of legal proceedings). Consequently we submitted a funding application to the Commonwealth based on the funding application submitted to IMF.

Both IMF and the Commonwealth provided us with draft funding agreements containing their respective funding offers for our consideration. The terms of the funding agreements provided are confidential.

At a meeting of the COI held on 10 September 2015, with the knowledge and approval of IMF and the Commonwealth, members of the COI were, on a confidential basis, provided with the key commercial terms of the IMF and Commonwealth funding agreements.

We considered the Commonwealth’s funding agreement to be more favourable to creditors. Following a discussion on the merits of both funding agreements, the Liquidators sought the COI’s approval for the following resolutions:


1. That pursuant to Section 477(2B) of the Act, the Liquidators may enter into a litigation funding agreement with the Commonwealth based on the commercial terms and in the form of the draft funding agreement tabled at the COI meeting on 10 September 2015, for a term that will extend beyond three months; and

2. That pursuant to Section 550(6) of the Act, a representative of the Commonwealth, Mr Henry Carr, be appointed to fill the vacancy created by Civil Pipelines on the COI in relation to BJ Jarrad.

The COI members present approved both of the above resolutions unanimously. As a result, on 23 September 2015 the Liquidators and the Commonwealth executed a litigation funding agreement.

At the COI meeting on 10 September 2015, the COI members were asked whether the creditors they represented were prepared to provide funding to the Liquidators to conduct the public examinations and fund the costs of legal proceedings if Senior Counsel’s advice following the examinations was to proceed with same. The COI members declined the request for funding.

In accordance with the terms of the funding agreement executed by the Liquidators and the Commonwealth, the Liquidators are required to provide creditors with an opportunity to provide litigation funding to the Liquidators to conduct the public examinations and fund the cost of any legal proceedings arising thereafter. Accordingly, creditors that are interested in providing funding, either in their own right as an alternative to the Commonwealth or contributing towards the overall cost of funding together with the Commonwealth, are asked to contact our office within 21 days of the date this report to discuss same. In the event that no alternative funding proposal is received from creditors, the Commonwealth’s funding agreement will proceed.

It should be noted that pursuant to Section 564 of the Act, where in a winding up:

(a) property is recovered under an indemnity for costs of litigation given by certain creditors or has been protected or preserved by the payment of money or the giving of indemnity by creditors; or

(b) expenses in relation to which a creditor has indemnified a liquidation have been recovered;

the Court may make such orders, as it deems just with respect to the distribution of that property and the amount of those expenses so recovered with a view to giving those creditors an advantage over others in consideration of the risk assumed by them.

We would envisage that any creditor (eg the Commonwealth) which provides litigation funding in this matter, in the event of a successful recovery in respect of any claim that may be issued and prosecuted by the Liquidators, would ultimately make an application under Section 564 of the Act to receive an advantage over other creditors by way of higher priority (than prescribed by Section 556 of the Act) in any distribution.

4.3 Public Examinations

Public examinations are an important means by which a liquidator can examine officers of a corporation and any other person who may be able to provide information about a company’s affairs. Pursuant to Sections 596A and 596B of the Act, a person may be summoned for examination for a mandatory and discretionary examination respectively. A liquidator may also seek production of documents pursuant to Section 597(9) of the Act.

The Liquidators have conducted extensive investigations to date based on the books and records of BJ Jarrad. This has included a forensic analysis undertaken by Ferrier Hodgson in respect of the image taken of BJ Jarrad’s computer server following our appointment. However, the Liquidators’ investigations are limited to the information available in the books and records.


It is crucial to the Liquidators overall investigations to consider information and documentation which is not necessarily contained in the books and records of the Companies. For the purpose of the liquidation of the Companies, the Liquidators are of the view that further information from sources other than the books and records of the Companies is required before their investigations can be concluded and advice sought from their solicitors and Senior Counsel as to the prospects of any claims.

The public examinations are to assist in our understanding of BJ Jarrad’s solvency and the management of BJ Jarrad.

Consequently, the Liquidators applied to the Federal Court of Australia seeking orders for production of certain documents and for parties to attend for examination. The Federal Court granted the examination orders, with production of documents and the public examinations to occur from 26 October 2015.

4.4 Insolvent Trading or Other Claims

Section 588G of the Act provides that a director is obliged to prevent a company from:

a. Incurring a debt whilst insolvent; or b. Becoming insolvent by incurring a debt.

If a contravention of Section 588G can be established then Section 588M empowers a liquidator (or a creditor under certain circumstances) to recover compensation from a director for any loss or damage suffered as a consequence of any such contravention.

Based on the information, correspondence and other documents we have reviewed during the course of the liquidation to date, we are investigating claims for insolvent trading and other claims. We have good reason to suspect that BJ Jarrad may have been insolvent at all times during the Relation Back Period, being from 1 February 2014 to the date of our appointment, and probably earlier. Our investigations are continuing.

Any decision to commence an action for an insolvent trading claim must have regard to the defences which may be available. There are a number of statutory defences available to a director which would have to be considered in deciding whether to commence an insolvent trading action.

Any recovery in relation to insolvent trading or other claims will also be dependent on the capacity of the defendant to meet any claim that may successfully be brought against them. In this regard, we advise that the sole Director of the Companies, Mr Barry Jarrad, has declared himself bankrupt. Messrs Maris Rudaks and Alan Scott of BRI Ferrier have been appointed as his Trustees in Bankruptcy. Based on our preliminary discussions with the Trustees, we understand that it is unlikely that there will be a dividend payable from the Director’s bankrupt estate.

As outlined at Section 4.3, following the public examinations, we will seek legal advice from Senior Counsel as to the merits of pursuing any potential insolvent trading claim or any other claim.

4.5 Unfair preferences

Section 588FA of the Act gives the Liquidators the power to recover certain transactions that have had the effect of conferring a priority, preference or advantage to the creditor within six months of the commencement of the winding up (the Relation Back Period).

A payment to a creditor is preferential if it is made at a time when a company is insolvent and it results in the recipient receiving a greater return than they would receive if the payment was set aside and the creditor lodged a claim in the liquidation.


Should a Liquidator establish any such unfair preference payments, these amounts may be recouped thereby increasing the funds available to ordinary unsecured creditors. If a creditor disgorges an unfair preference payment to a Liquidator, the creditor is, subject to any terms of settlement that maybe agreed, entitled to prove for dividend as an unsecured creditor for the amount disgorged in addition to any other unsecured claim. Therefore, whilst recovering an unfair preference increases the pool of funds available to creditors, it also increases total creditor claims.

In our Section 439A Report, based on our preliminary analysis, we identified possible unfair preference payments of approximately $2.6 million during the period 31 March 2014 to the date of our appointment. This was based on our preliminary assessment at that time that the Companies were insolvent from at least 31 March 2014 onwards. Following further investigations, we have good reason to suspect that BJ Jarrad may have been insolvent at all times during the Relation Back Period, being 1 February 2014 to the date of our appointment, and probably earlier. Our investigations are continuing.

As outlined at Note 5 of Section 3.2.1 of this report, to date we have settled six claims totalling $368,024. We are continuing to pursue a further five claims of up to $2.0 million in total value, either with the creditor directly or via the Court. Each claim will be assessed on its merits and if the costs of pursuing a particular claim outweigh any benefit to the overall creditor position, the Liquidators will not proceed with the claim.

4.6 Loan Account

As at 30 June 2014, BJ Jarrad’s financial statements recorded a debit loan account due by Mr Barry Jarrad totalling $0.6 million. We note that Mr Jarrad considers that he is a creditor of BJ Jarrad in the order of $0.9 million (refer Section 6), being 50% of the loan due to CFC Group totalling $1.8 million, meaning that Mr Jarrad would be a net creditor of BJ Jarrad for $0.3 million. We note that this loan account will be further reviewed by us in the event a dividend becomes payable in Mr Jarrad’s Bankrupt Estate or if Mr Jarrad’s Trustees seek to lodge a POD in the liquidation of BJ Jarrad for dividend purposes.

5 Future conduct of the liquidation

5.1 Outstanding matters to be addressed

In order to complete the liquidation of the Companies, the following tasks are to be carried out:

Liaison with SA Water regarding payment of the overdue $61,000 invoice and accounting for the bank guarantees both called and yet to be called;

Issuing proceedings in respect of further unfair preference claims and pursue recoveries of same (including attending to any settlement arrangements);

Undertake and complete public examinations (including production of documents orders);

Receive and consider Senior Counsel advice in relation to potential insolvent trading or other claims available to the Liquidators;

Conduct further investigations into potential insolvent trading or other claims available to the Liquidators, as required;

Pursue recovery of any claims identified based on advice from Senior Counsel;

Attend to all obligations required by the litigation funding agreement with the Commonwealth;

Hold meetings of the COI and creditors, as required;

Prepare reports to the COI and creditors, as required;

Acquittal of final FEG distributions;


Declare and remit dividends to priority and non priority unsecured creditors (if required); and

Attend to ASIC lodgements and obligations under the Act.

5.2 Estimated completion of the winding up

At this stage it is difficult to estimate a date by which the liquidation will be finalised as it is largely dependent on the outcome of the public examinations and whether any legal proceedings are commenced by the Liquidators based on Senior Counsel advice following the examinations. We estimate a further two years or more may be required to finalise the winding up of the Companies.

6 Estimate of return to creditors

BJ Jarrad

Set out below is an estimate of the return to creditors in the liquidation of BJ Jarrad:

$000s

GST exclusive

Report Ref / Note

ERV High ERV Low

Cash at Bank 3.2.1 73 73

Debtors – BAJV 3.2.1 18 18

Debtors – SA Water 3.2.1 61 -

Net GST / PAYG Refund 3.2.1 12 12

Funds Available 164 103

Add: Estimated Future Part 5.7B Recoveries

Unfair Preference Payments 4.5 Unknown Unknown

Insolvent Trading or Other Claims 4.4 Unknown Unknown

Total Estimated Future Part 5.7B Recoveries Unknown Unknown

Total Funds Available 164 103

Less:

Estimated Liquidators’ Fees (unpaid and future estimate) (670) (750)

Estimated Legal Fees (unpaid and future estimate) (440) (610)

Available to Priority Creditors (excluding interest on funding costs)

(946) (1,257)

Less: Estimated Priority Creditors 3.2.1 (1,211) (1,211)

Available to Ordinary Unsecured Creditors (2,157) (2,468)

We make the following comments:

As outlined in Section 4, the outcome in relation to potential Part 5.7B voidable transactions available to the Liquidators is presently unknown, given unfair preference claims are still being pursued and any insolvent trading claim or other claims cannot be determined until after the public examinations have been concluded.

Based on the above, we estimate that we will need to recover at least a further $946,000 and possibly up to $1.26 million from voidable transactions to enable a dividend to be paid to priority creditors of BJ Jarrad.

Based on the above, we estimate that we will need to recover at least a further $2.16 million and possibly up to $2.47 million from voidable transactions to enable a dividend to


be paid to non priority unsecured creditors of BJ Jarrad (which will include any unsecured balance owing to secured creditors).

The table above has been prepared without contemplating any application pursuant to Section 564 of the Act (refer to Section 4.2) which is a possibility;

Our current estimate of professional fees in pursuing these matters are as follows:

$000s Estimated Professional Fees ERV High ERV Low

Liquidators’ Remuneration

Approved but Unpaid (refer Section 3.2.1) 438 438

Unfair Preference Claims (1)

75 100

Insolvent Trading or Other Claims (1)

145 195

Statutory Tasks (1)

12 17

Total 670 750

Legal Fees

Estimate for Legal Fees – Unfair Preference Claims 130 240

Legal Fees – Incurred Prior to Funding Agreement 40 40

Estimate for Legal Fees – Insolvent Trading or Other Claims 270 330

Total 440 610

(1) Subject to COI or creditor approval

Based on the books and records of BJ Jarrad, we estimate BJ Jarrad to have in excess of 200 non priority unsecured creditors who are owed debts totalling between $13.2 million and $17.1 million based on PODs received as summarised in the table below:

$000s Creditor

ERV High ERV Low

Trade Creditors (estimate) 6,105 6,400

Add Back: Civil Pipelines (Bank Guarantees Called) (250) (250)

Unfair Preference Payments Disgorged (refer Section 4.5) 128 2,128

ATO (Running Account Balance) 1,300 1,400

Barry Jarrad – Loan (subject to any debit balance loan account offset) 953 953

CFC Group – Loan 953 953

JEH – Loan 1,623 1,623

Excluded Employee Non Priority Claims 208 208

Contingent Creditors 2,200 3,700

Total 13,220 17,115

We make the following comments:

Civil Pipelines presented two bank guarantees totalling $250,000 following our appointment which had the effect of reducing the debt due to Civil Pipelines but increasing the secured debt due to Westpac.


We have allowed for increases in creditor claims (excluding the ATO) of between $128,000 and $2.13 million in relation to unfair preference claims disgorged. In the ERV Low case we have assumed the maximum recovery of the remaining unfair preference claims are disgorged and therefore able to rank for dividend purposes.

At the time of issuing our Section 439A Report, we estimated that the ATO may be owed in the order of $1.3 million to $1.5 million following lodgement of Business Activity Statements for the June 2014 quarter and the period 1 July 2014 to 31 July 2014. On 1 July 2015, the ATO submitted a revised Proof of Debt indicating a Running Account Balance of $1,063,364.21. We note that the ATO’s claim is likely to increase by the amount of the unfair preference claim of $240,000 disgorged on 20 July 2015. Accordingly, we have estimated the debt owed to the ATO will be in the order of approximately $1.3 million to $1.4 million.

Both CFC Group and Barry Jarrad claim to be owed $953,000 in relation to funds advanced by CFC Group notwithstanding the financial statements of BJ Jarrad only ever disclosed a debt due to CFC Group. Both of these loan accounts are subject to our further review, especially Barry Jarrad's loan account which according to the financial statements was in debit (i.e. owing to BJ Jarrad) by approximately $600,000.

We have provided for Excluded Employee Non Priority claims of $208,000 as discussed at Section 3.2.1.

We have provided for contingent creditors of between $2.2 million and $3.7 million to allow for potential subrogated claims of guarantors of the Westpac debt (refer to Section 3.2.1). We have not provided for any claim from BAJV for Defects at this stage. To the extent that any Defects arise and are adjudicated by us to be valid, total creditor claims may increase.

JEH

JEH’s only remaining asset is a loan due by BJ Jarrad. To the extent a dividend is payable in the liquidation of BJ Jarrad, will determine whether any funds are available to unsecured creditors of JEH after payment of Liquidators remuneration (refer Section 3.2.2).

We estimate that unsecured creditors of JEH are as follows:

$000s Creditor

ERV High ERV Low

ATO (Running Account Balance) 34 100

Shortfall to Financiers (ie leased vehicles/assets shortfall) 607 607

Total Estimated Unsecured Creditors 641 707

7 Further queries

We will issue a further report to creditors in the event that any significant matters come to our attention before the next annual report is due. Otherwise our next report will be in 12 months time pursuant to Section 508 of the Act although we will be reporting to the COI in the meantime.

Should you have any questions in relation to this report, please contact Tara Martin of this office.

Dated this 22nd day of October 2015

TD Mableson & MD Lewis Liquidators


Glossary of terms

Abbreviation Description

ACN Australian Company Number

Act Corporations Act 2001

ARV Auction Realisable Value

ASIC Australian Securities and Investments Commission

ATO Australian Taxation Office

BAJV Baulderstone Abigroup Joint Venture

BJ Jarrad BJ Jarrad Pty Ltd (In Liquidation)

Civil Pipelines Civil Pipelines Australia Pty Ltd

COI Committee of Inspection

Commonwealth Commonwealth of Australia Department of Employment

Companies BJ Jarrad and JEH

CFC Group Contura Mining Pty Ltd and related entities collectively known as the CFC Group

ERV Estimated Realisable Valuation

FEG Fair Entitlements Guarantee Act

GSA General Security Agreement

GST Goods and Services Tax

IMF IMF Bentham Limited

JEH Jarrad Equipment Holdings Pty Ltd (In Liquidation)

Liquidators Timothy David Mableson and Martin David Lewis

MGS Mason Gray Strange

MV Market Value for existing use

PAYG Pay as You Go

PILN Pay in Lieu of Notice

POD Formal Proof of Debt or Claim Form

Relation Back Period Period from 1 February 2014 to 31 July 2014

Section 439A Report Administrators’ Report dated 26 August 2014 prepared pursuant to Section 439A of the Act

WIP Work In Progress


Annexure

A Summary of receipts and payments – BJ Jarrad Pty Ltd (In Liquidation)

Receipts and Payments Summary By Account: BJ6002 B.J. Jarrad - B.J. Jarrad Pty. Ltd. (InCVL, Bank, Cash and Cash Investment Accounts: From: 04/09/2014 To: 04/09/2015 (Gross Method)

TotalType GSTAccount

TRADING RECEIPTS21,510.91Insurance Claims Received

22,190.72Refunds Received

5,159,518.52Sales 469,047.15174.59Scrap Metal 15.87

18,430.28Workcover - Income Maintenance

(991.82)Sales (90.91)5,220,833.20468,972.11

1Page22/10/2015 4:41 PM


TRADING PAYMENTS37,664.10Care, Preservation & Realisation Costs 2,463.635,771.00Deductions: Child Support

525.00Deductions: Fine Repayment

11,560.12Hire & Leasing 1,050.921,855.86Motor Vehicle Expenses 31.86

183.63Repairs & Maintenance 16.6949.53Security 4.51

36,263.70Subcontractors 3,296.7021.38Superannuation

10.32Utilities 0.94225.00Wages & Salaries

504.92Wages & Salaries: Ordinary Time

850.00Wages & Salaries: Salary Sacrifice

(3,640.00)Accommodation (76.36)(10,822.55)Accounting Fees (983.87)

(638.61)Advertising (58.06)(147,768.00)Allowances: Not Taxed

(36,258.40)Allowances: Taxed

(161.00)Bank Charges

(9,891.39)Care, Preservation & Realisation Costs

(11,016.00)CITB Levy

(1,076.90)Cleaning (97.90)(16,685.48)Computer Expenses (1,516.87)(8,079.20)Deductions: Child Support

(1,000.00)Deposit

(282.10)Employee Expenses

(16.50)Employee Reimbursement

(1,863.68)Employee Reimbursement: Accommodation (169.43)(294.00)Employee Reimbursement: Baggage (26.72)(879.60)Employee Reimbursement: Entertainment (13.18)(956.55)Employee Reimbursement: Flights (62.64)(143.35)Employee Reimbursement: Fuel (9.21)(727.93)Employee Reimbursement: Hire & Leasing (66.17)(218.23)Employee Reimbursement: Licences/Registrations

(4,096.19)Employee Reimbursement: Materials / Tools (306.03)(1,920.92)Employee Reimbursement: Meals (86.17)

(81.80)Employee Reimbursement: Medical Expenses

(965.97)Employee Reimbursement: Office Supplies (85.17)(458.30)Employee Reimbursement: Parking (41.66)(240.00)Employee Reimbursement: Safety Clothing (21.82)

(1,255.00)Filing Fees

(49,543.82)Freight (4,442.83)(164,213.79)Fuel & Oil (14,928.59)(928,864.92)Hire & Leasing (64,022.27)(35,112.00)Insurance (2,878.50)(1,849.99)Internet (168.18)

(13,191.28)Labour Hire (1,199.26)(72,926.74)Legal Fees (6,629.71)

(521.00)Levies

(19,382.44)Levies: Long Service Leave

(2,751.35)Licences/Permits (243.76)(348.70)Medical Expenses

(30,433.61)Motor Vehicle Expenses (1,030.29)(655.30)Office Supplies (58.62)

(540,248.00)PAYG Control (Trading): PAYG Paid (Received)

332,503.00PAYG Control (Trading): PAYG Withheld

(83,442.35)Payroll Tax

(257.11)Postage (23.38)(53.00)Printing & Stationery (4.82)

2Page22/10/2015 4:41 PM


TRADING PAYMENTS(94,847.50)Project Management Fees (8,622.50)(13,750.00)Public Relations (1,250.00)

(1,600,951.33)Purchases (146,484.21)(113,300.00)Rent & Rates (10,300.00)(55,913.59)Repairs & Maintenance (5,011.78)

(586.68)Security (53.35)(1,246,745.41)Subcontractors (113,340.54)

(72,104.30)Superannuation

(128,788.30)Superannuation Control (Trading): Superannuation Paid (Received)

75,397.42Superannuation Control (Trading): Superannuation Withheld

(30,278.96)Telephone & Fax (2,504.61)(46,193.95)Testing (4,199.45)

(140.00)Travel - Accommodation (12.73)(18,505.90)Travel - Flights (1,682.36)(15,083.78)Utilities (782.78)

(225.00)Wages & Salaries

(135,640.16)Wages & Salaries: Double Time

(992,653.69)Wages & Salaries: Ordinary Time

(1,959.19)Wages & Salaries: Public Holiday

(2,350.00)Wages & Salaries: Salary Sacrifice

(125,477.92)Wages & Salaries: Time + Half Time

(10,099.78)Waste Disposal (918.22)(132,975.75)WorkCover Levy (12,065.10)

(6,540,419.26)(399,613.85)

(1,319,586.06)Net Trading Receipts and Payments 69,358.26

NON-TRADING RECEIPTS54,444.96Accounts Receivable (Pre-Appointment)

200.00Auctioneer's Charges: Advertising

17,694.75Auctioneers' Commission

34,000.00Capital Finance Assets (JEH)

634,651.22Cash at Bank

1,000,000.00Cash at Bank - Interest Account

51,625.00CBA Assets (JEH)

668.35Equity: Opening Balance

888,690.85GEERS Liability

19,687.00GST Control: Fuel Tax Credits

122,842.00GST Control: GST Paid (Received)

19,989.48Insurance 1,636.8510,834.81Interest Income

27,719.50Loan - Jarrad Equipment Holdings

1,226.85Petty Cash

803,165.00Plant & Equipment 71,933.184,910.36Preferred Creditors: Leave of Absence

8,247.52Preferred Creditors: Retrenchment

705.38Preferred Creditors: Wages

7,076.82Refunds 150.8827,538.15Stock/Inventory on Hand 24.55

275,000.00Unfair Preference Recoveries

244,090.92Westpac Assets (JEH) 5,000.004,255,008.9278,745.46

3Page22/10/2015 4:41 PM


NON-TRADING PAYMENTS(525.00)Accounts Receivable (Pre-Appointment)

(7,001.46)Advertising (636.49)(1,758.30)Appointee Disbursements: Appointee Disbursements (GST Free)

(24,755.16)Appointee Disbursements: Appointee Disbursements (Subject to GST) (2,250.46)(553,211.18)Appointee Fees: Appointee Fees (50,291.93)

(1,625.25)Auctioneer's Charges (147.75)(8,840.86)Auctioneer's Charges: Advertising (803.71)

(550.00)Auctioneer's Charges: Brochures (50.00)(20,519.00)Auctioneer's Charges: Labour (1,865.36)(6,000.00)Auctioneer's Charges: Plant Hazard Reports (545.45)

(330.00)Auctioneer's Charges: Webcast (30.00)(88,912.05)Auctioneers' Commission (7,190.55)

(820.60)Bank Charges

(34,000.00)Capital Finance Assets (JEH)

(51,625.00)CBA Assets (JEH)

(2,004.44)Data Room (182.22)(431,067.99)FEG Scheme Payment

(169,846.22)FEG Scheme Payment






(497.82)FEG Scheme Payment

(231,846.00)GST Control: GST Paid (Received)

(88,400.65)Insurance (7,292.46)(13,785.00)JEH GST Paid (Received)

(103,117.80)Legal Fees (9,102.98)(16,130.79)Loan - Jarrad Equipment Holdings

(45,222.00)PAYG Control (Non-Trading): PAYG Paid (Received)

64.00PAYG Control (Non-Trading): PAYG Withheld (Preferred Dividend)

(78,893.15)Plant & Equipment

(5,166.74)Preferred Creditors: Leave of Absence

(19,943.74)Preferred Creditors: Retrenchment

(705.38)Preferred Creditors: Wages

(469.10)Printing & Stationery (42.65)(437,157.34)Return to Secured Creditor

(1,760.00)Room Hire (160.00)(3,671.60)Valuation Fees (333.78)

(239,090.92)Westpac Assets (JEH)

(2,860,189.36)(80,925.79)

1,394,819.56Net Non-Trading Receipts and Payments (2,180.33)

75,233.50Net Receipts (Payments) 67,177.93

4Page22/10/2015 4:41 PM


Annexure

B Summary of receipts and payments – Jarrad Equipment Holdings Pty Ltd (In Liquidation)

Receipts and Payments Summary By Account: JA6002 Jarrad Equipment Holdings - JarradCVL, Bank, Cash and Cash Investment Accounts: From: 04/09/2014 To: 04/09/2015 (Gross Method)


NON-TRADING RECEIPTS(15,938.00)GST Control: GST Paid (Received)

16,130.79Loan Payable - BJ Jarrad

34,000.00Plant & Equipment: Capital Finance Leased Assets

51,625.00Plant & Equipment: CBA Leased Assets

10,516.82Plant & Equipment: Equity from sale of leased asset

258,000.00Plant & Equipment: Westpac Leased Assets 18,909.10277,689.32Proceeds from Sale of Leased Assets

632,023.9318,909.10

NON-TRADING PAYMENTS(74.00)Appointee Disbursements: Appointee Disbursements (GST Free)

(317.42)Appointee Disbursements: Appointee Disbursements (Subject to GST) (28.86)(11,584.37)Appointee Fees: Appointee Fees (1,053.12)(19,466.75)Auctioneer's Charges (899.27)(10,880.52)Care, Preservation & Realisation Costs (989.14)

182.00GST Control: GST Paid (Received)

(2,002.00)Legal Fees (182.00)(13,934.09)Loan Payable - BJ Jarrad

(310,042.46)Proceeds from Sale of Leased Assets

(32,504.00)Return to Secured Creditor: Return to Capital Finance

(45,946.25)Return to Secured Creditor: Return to CBA

(185,454.07)Return to Secured Creditor: Return to Westpac

(632,023.93)(3,152.39)

0.00Net Non-Trading Receipts and Payments 15,756.71

0.00Net Receipts (Payments) 15,756.71

1Page22/10/2015 4:38 PM

annual report to creditors - ferrier hodgson/media/ferrier/files/documents... · annual report to...

Documents