corporate recovery - mcgrathnicol · 8/12/2011 · corporate recovery 12 august 2011 . to the...

D14-110812-WMLGMAN01-Circular to creditors-bl.docx

CORPORATE RECOVERY

12 August 2011

To the Creditor as Addressed

Dear Sir/Madam

Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed) (“WML”) ACN 074 148 431

I refer to my appointment as Liquidator of WML on 11 April 2006.

I have convened a meeting of creditors to be held at Level 17, 37 St Georges Terrace, Perth WA 6000 on Tuesday 30 August 2011 at 12:00pm.

The purpose of this meeting is to:

+ provide creditors with an update on the progress and conduct of the liquidation;

+ seek creditors’ approval of the Liquidators’ remuneration; and

+ discuss any other relevant business which may arise.

Accordingly, I enclose:

+ statutory notice convening the meeting (Form 529);

+ proof of debt form (Form 535);

+ proxy form (Form 532);

+ information sheets to assist the completion of the proof of debt and proxy forms; and

+ liquidators’ report to creditors

Attendance and voting requirements

Creditors who intend to vote at the meeting, and who have not already done so, must lodge a proof of debt with the Liquidators prior to the meeting.

Creditors who are unable to attend the meeting and wish to be represented should ensure that either a proxy form, power of attorney or evidence of appointment of a company representative pursuant to section 250D of the Corporations Act (“the Act”) is validly completed and provided to me prior to the meeting.

If a faxed copy of a proxy or power of attorney is provided prior to the meeting, the original of the instrument must be received by me within 72 hours of my receipt of the faxed copy.

D14-110812-WMLGMAN01-Circular to creditors-bl.docx

Alternatively, proxy forms can be e-mailed to [email protected]. Proxy forms lodged via e-mail must be validly executed by signing and scanning the completed form.

Corporate creditors who wish to attend the meeting should note that they may only be represented by an individual if that person is validly granted a proxy or power of attorney by that corporation, or appointed as a company representative pursuant to section 250D of the Act.

A creditor is not entitled to vote at a meeting unless a claim has been admitted by the Liquidator or the debt or claim has been lodged with the Liquidator. If you have already lodged a Proof of Debt with this office, you are not required to lodge another one, unless the amount of your claim has changed.

If you have not yet lodged a proof of debt, or are require to provide a proxy form or power of attorney, please complete and return the relevant form/document to this office by no later than 4:00pm on Monday 29 August 2011.

Remuneration

The Liquidators’ remuneration can only be fixed by resolution of creditors, a resolution of a committee of inspection or by application to the Court. The Liquidators will seek approval of their remuneration of $130,908.00 plus GST for the period 13 November 2010 to 29 July 2011 and future remuneration in the sum of $267,500 plus GST at the above meeting of creditors:

If you have any queries, please contact Melinda Rivera on (08) 6363 7636.

Yours sincerely Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed)

Simon Read Liquidator Enclosures: 1. 29) Statutory notice of meeting (Form 5

Proof of Debt (Form 535) Proxy form (Form 532) Notes for guidance on completing the

2. 3. 4. proof of debt and proxy forms 5. Report to Creditors

FORM 529

Corporations Act (2001)

Subregulation 5.6.12 (2)

NOTICE OF MEETING OF CREDITORS OF COMPANY IN LIQUIDATION

Westpoint Management Ltd (Receivers and Managers Appointed)

(In Liquidation) ACN: 074 148 431 (“the Company”)

Notice is given that a meeting of the creditors of the Company will be held at the offices of McGrathNicol, Level 17, 37 St Georges Terrace, Perth, WA 6000 at 12:00pm on 30 August 2011. 1. To provide creditors with an update on the progress and conduct of the liquidation. 2. To seek creditors’ approval of the Liquidators’ remuneration. 3. To discuss any other relevant business which may arise. Dated 12 August 2011

Simon Read Official Liquidator McGrathNicol Level 17, 37 St Georges Terrace Perth WA 6000 Tel: (08) 6363 7600 www.mcgrathnicol.com

*Do not complete if this proof is made by the creditor personally.

Australian Company Number: 074 148 431

FORM 535 Subregulation 5.6.49(2)

Corporations Act (2001)

FORMAL PROOF OF DEBT OR CLAIM (GENERAL FORM)

To the Liquidators of Westpoint Management Ltd (Receivers and Managers Appointed) (In Liquidation): 1. This is to state that the company was on 8 February 2006, and still is, justly and truly indebted to: _________________________________________________________________________________ (full name 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 $_______________and______cents.

Date Consideration (state how the Debt arose)

Amount $ c

Remarks (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 $c Due Date

*3. 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.

*3. I am the creditor's agent authorised in writing to make this statement in writing. 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.

........................................... Dated Signature Name: Occupation: Address: Phone Contact: Creditor’s ABN:

If you are a business creditor, failure to quote your ABN may result in withholding of tax of 48.5% from any dividend by the Official Liquidators.

Proof of Debt Reference:

FORM 532 Corporations Act 2001

Regulation 5.6.29

Westpoint Management Ltd (Receivers and Managers Appointed)

(In Liquidation) ACN: 074 148 431

APPOINTMENT OF PROXY

I/We (1) ________________________________________________________________________________________ of _________________________________________________________________________________________________ a creditor/member of Westpoint Management Ltd (Receivers and Managers Appointed) (In Liquidation) appoint (2)_____________________________________________ or in his/her absence (3) _____________________________________________as my/our general/special proxy to vote at the meeting of creditors to be held on 30 August 2011 at 12:00pm or at any adjournment of that meeting. DATED this ___________ day of ________________________ 2011 (4) Signature ___________________________________ CERTIFICATE OF WITNESS - only complete if the person given the proxy is blind or incapable of writing. I, ____________________________________________ of _______________________________________________ certify that the above instrument appointing a proxy was completed by me in the presence of and at the request of the person appointing the proxy and read to him before he attached his signature or mark to the instrument. DATED this ___________ day of ________________________ 2011

Signature of witness ___________________________________

Description ___________________________________

Place of residence ___________________________________

___________________________________

Notes: (1) If a firm strike out "I" and set out the full name of the firm. (2) Insert the name of the person appointed. (3) If a special proxy, “add the words ‘to vote for’ or the words ‘to vote against’ and specify the particular resolution”. (4) If the creditor is a sole trader , sign in accordance with the following example: “A.B., proprietor”. If the creditor is a partnership, sign in accordance with the following example: “A.B., a partner of the said firm.” If the creditor is a company, then the form of proxy must be under its Common Seal or under the hand of some

officer duly authorised in that capacity, and the fact that the officer is so authorised must be stated in accordance with the following example: “for the company, A.B.” (duly authorised under the Seal of the Company).

Proxy forms should have been completed and returned by no later than 4:00 PM on Monday 29 August 2011 to be eligible to vote at the meeting. RETURN TO: Westpoint Management Ltd (Receivers and Managers Appointed) (In Liquidation) of care of McGrathNicol Address: GPO Box 9986, Perth WA 6848 Phone: +61 8 6363 7600 Fax: +61 8 6363 7699

Address: Level 17, 37 St Georges Terrace, Perth WA 6000 Contact Name: Melinda Rivera Contact Number: (08) 6363 7636

Proofs of Debt Notes for your guidance

(Please read carefully before filling in Form 535 or Form 536)

It is a creditor’s responsibility to prove their claim to our satisfaction.

When lodging claims, creditors must ensure that:

(a) the proof of debt form is properly completed in every particular; and

(b) documentary evidence, such as that detailed below, is attached to the Form 535 or Form 536.

Directions for completion of a Proof of Debt

1. Insert the full name and address of the creditor.

2. Under “Consideration” state how the debt arose, for example “goods sold to the company on …………..”.

3. Under “Remarks” include details of any documents that substantiate the debt (refer to the section titled “Information to support your claim” below for further information).

4. Where the space provided for a particular purpose is insufficient to contain all the required information in relation to a particular item, that information should be set out in an annexure.

5. An annexure to the form must have an identifying mark and be endorsed with the words:

“This is the annexure of …… pages marked …… referred to in the Form 535/536 signed by me and dated …………………

…………………………………… ……………………………………………………..

Signature(s) Name of Signatory IN BLOCK LETTERS”

and signed by each person signing the form to which the document is annexed.

6. The pages in the annexure must be numbered consecutively.

7. Where a document, copy of a document or other matter is annexed to a form, reference made in the form to the annexure shall be by its identifying mark, the number of pages in it, and a brief description of the nature of the document and its contents.

8. A reference to an annexure includes a document, copy of a document or any other matter accompanying, attaching to or annexed to a form.

Information to support your claim

Please note that your debt is not likely to be accepted unless evidence to support its existence is provided. Detailed below are some examples of the type of debt creditors may be claiming and a suggested list of documents, copies of which should accompany a proof of debt for that class of creditor.

D14-110812-WMLGMAN01-Proof of Debt Guidance-bl 1

D14-110812-WMLGMAN01-Proof of Debt Guidance-bl 2

Trade Creditors

+ Statements and supporting invoices(s) showing the amount of the debt; and

+ Advice(s) to pay outstanding invoice(s) (optional).

Guarantees/Indemnities

+ Executed guarantee/indemnity;

+ Notice of Demand served on the guarantor; and

+ Calculation of the amount outstanding under the guarantee.

Judgment Debt

+ Copy of the judgment; and

+ Documents/details to support the underlying debt as per other categories.

Deficiencies on Secured Debt

+ Security Documents (eg. mortgage);

+ Independent valuation of the secured portion of the debt (if not yet realised) or the basis of the creditor’s estimated value of the security;

+ Calculation of the deficiency on the security; and

+ Details of income earned and expenses incurred by the secured creditor in respect of the secured asset since the date of appointment.

Loans (Bank and Personal)

+ Executed loan agreement; and

+ Loan statements showing payments made, interest accruing and the amount outstanding as at the date of appointment.

Tax Debts

+ Documentation that shows the assessment of debts, whether it is an actual debt or an estimate, and separate amounts for the primary debt and any penalties.

Employee Debts

+ Basis of calculation of the debt;

+ Type of Claim (eg. wages, holiday pay, etc);

+ Correspondence relating to the debt being claimed; and

+ Contract of Employment (if any).

Leases

+ Copy of the lease; and

+ Statement showing amounts outstanding under the lease, differentiating between amounts outstanding at the date of the appointment and any future monies.

Proxy

Notes for your Guidance

+ Insert full name and address of creditor, contributory or member on the top line.

+ On the second line, insert the name of the person you appoint as your proxy. You may insert “the Chairperson of the meeting” if you wish.

+ You may appoint an alternate proxy on the third line who may act if your first appointed proxy cannot attend the meeting. You may insert “the Chairperson of the meeting” if you wish.

+ If the proxy is a general proxy the form requires no addition.

+ If the proxy is a special proxy the form must include instructions regarding the use of the proxy (i.e. details of the resolution and whether the proxy holder is to cast a vote in favour or against the resolution or abstain from voting).

+ Date and sign the Proxy form using one of the following various forms of execution:

- Sole Trader - Sign the proxy yourself.

- Partnership - e.g. sign - “Smith & Associates Per John Smith - Partner”

- Company - (i) By a director or secretary, e.g. “J Smith – Director”. (ii) By a person duly authorised to sign on behalf of the

company, e.g.

“Smith & Sons Pty Ltd. ACN: ______________ Per: J Smith A person duly authorised to sign on the company’s behalf”. OR

“Smith & Sons Pty Ltd. ACN: ______________ By its duly constituted attorney J Smith”.

NB: If signing on behalf of a company the following example is not sufficient: ”Smith & Sons Pty Ltd. ACN: _______________ Per: J Smith”

+ “Certificate of Witness” is only to be used where the Proxy is being completed on behalf of a person who is blind or incapable of writing. In all other cases a witness to the signature of the person appointing the Proxy is not required and you may ignore the section headed “Certificate of Witness”.

D14-110812-WMLGMAN01-Proxy Guidance-bl

Report to Creditors

Westpoint Management Ltd (In Liquidation)

(Receivers and Managers Appointed)

12 August 2011

D14-110811-WMLGMAN01-Report to creditors-final.docx Page (i)

Contents

Glossary .................................................................................................................................................................... 1

1 Executive Summary .................................................................................................................................... 2

2 Introduction .................................................................................................................................................. 3

3 WML’s financial position ............................................................................................................................ 4

4 Receipts and Payments .............................................................................................................................. 5 4.1 Liquidators’ fees .......................................................................................................................................... 5 4.2 Liquidators’ disbursements ....................................................................................................................... 6 4.3 Legal fees ..................................................................................................................................................... 6

5 Summary of trusts and MISs ...................................................................................................................... 7 5.1 Westpoint Income Fund (“WIF”) ................................................................................................................ 7 5.2 Paragon Commercial Syndicate (“PCS”) .................................................................................................. 8 5.3 Paragon Apartments Trust (“PAT”) ........................................................................................................... 8 5.4 Murray Street Trust ..................................................................................................................................... 8 5.5 Market Street Trust ...................................................................................................................................... 8

6 Liquidators’ remuneration .......................................................................................................................... 9

7 Creditors’ meeting ..................................................................................................................................... 11

Glossary

The Act The Corporations Act 2001

ASIC Australian Securities and Investments Commission

CFAL Chocolate Factory Apartments Limited

CRST Westpoint Management (Centreways) Pty Ltd as trustee for the Centreways Refurbishment Syndicate Trust

Earlmist Earlmist Pty Ltd

Goldtag Goldtag Pty Ltd (In Liquidation)

Lanepoint Lanepoint Enterprises Pty Ltd (In Liquidation) (Receivers and Managers Appointed)

Kingdream Kingdream Pty Ltd (In Liquidation)

Market Street Trust 60 Market Street Trust

MIS Managed Investment Scheme

Murray Street Trust 297 Murray Street Trust

PAT Paragon Apartments Trust

PCS Paragon Commercial Syndicate

WIF Westpoint Income Fund

WML Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed) ACN 074 148 431

1 Executive Summary

The purpose of this report is to:

+ Provide an update since my last report dated 18 November 2010 on the status of:

- The liquidation of WML in its own right; and

- The winding up of trusts and managed investment schemes for which WML is either the trustee or responsible entity.

+ Provide details of the liquidators’ fees incurred since the last meeting of WML’s creditors and details of the liquidators’ future fees.

A summary of the status of WML and each of its trusts and managed investment schemes is as follows:

Entity Section Status WML 3 WML has a net asset shortfall of approximately $46 million and there is

unlikely to be a return to WML’s creditors. WIF 5.1 Lanepoint was placed in liquidation which decision was stayed by the WA

Supreme Court on appeal. The ASIC subsequently appealed successfully to the High Court of Australia. I am seeking to conclude the matters in dispute with the liquidator of Lanepoint.

PCS 5.2 All matters pertaining to the claims by CRST were settled. The finalisation of the taxation returns for the PCS is the only matter outstanding.

PAT 5.3 I continue to await the outcome of the ING receivership. Murray Street Trust 5.4 I continue to await the outcome of the ING receivership. Market Street Trust 5.5 I continue to wait for the Perpetual receivership to be completed.

I am convening a meeting of WML’s creditors to be held at 12.00 pm on 30 August 2011 at Level 17, 37 St Georges Terrace, Perth WA to:

+ Provide creditors with an update on the progress and conduct of the liquidation; and

+ Seek approval of the Liquidators’ fees of $130,908 plus GST for the period 13 November 2010 to 29 July 2011 and future fees in the sum of $267,500 plus GST. These fees relate to the various entities which WML is trustee and responsible entity of, and will be payable from the assets of the relevant trusts and managed investment schemes to the extent that those assets are sufficient. Full details of the Liquidators’ fees are included in section 6 and Appendices 1 and 2.

2 Introduction

The purpose of this report is to:

+ Provide an update since my last report dated 18 November 2010 on the status of:

- The liquidation of WML in its own right; and

- The winding up of trusts and managed investment schemes for which WML is either the trustee or responsible entity;

+ Provide details of the liquidators’ fees incurred since the last meeting of WML’s creditors.

+ Provide details of the liquidator’s estimated future fees to complete the winding up of WML and the various entities WML is either trustee or the responsible entity of.

If you would like a copy of my previous reports, they are available at www.mcgrathnicol.com in the Administrations section.

3 WML’s financial position

Table 1 summarises WML’s estimated financial position at 29 July 2011, which indicates a deficiency of approximately $46 million.

1

My comments on WML’s estimated financial position since my last report to creditors are as follows:

+ I have not realised any further debtors during the liquidation.

+ As advised previously, WML’s term deposit was subject to a Deed of Set-off in favour of St George Bank which secured funds advanced to other Westpoint Group entities. St George Bank has applied the funds from the term deposit against their debt. We are seeking to claim rights of subrogation against the debtor whose debt the deposit was applied against.

+ Other assets comprise an apartment owned by WML which was also subject to the security in favour of St George. I have been advised that the Receivers and Managers appointed by St George Bank have retired but will not release the security on the apartment until they receive a release from Mr Norm Carey. In the meantime, the apartment is in the possession of the Receiver and Manager.

The realisable value of WML’s assets is unlikely to cover the cost of the liquidation; therefore, there is unlikely to be a return to WML’s creditors.

My ongoing role for WML is to:

+ Attend to all statutory lodgements;

+ Complete the winding up of each of the trusts and MISs; and

+ Sell the apartment after the security held by the St George Bank has been released.

1 Subject to future costs of the liquidation (see section 4)

Table 1 - WML's estimated financial position at 29 July 2011

Min Max

Assets

Cash 176 176

Debtors 86 388

Investments 33 33

Term deposits - -

Other assets Withheld Withheld

Total assets1 295 597

Liabilities

Court application costs 5 5

Unsecured creditors 46,913 46,913

Total liabilities 46,918 46,918

Net asset surplus/(deficiency) (46,623) (46,321)

Liquidators' ERV

$'000

4 Receipts and Payments

Table 2 sets out the receipts and payments made during the liquidation to date.

2

4.1 Liquidators’ fees

To date, I have paid Liquidators’ fees of $75,703 (excluding GST). The outstanding Liquidators’ fees for WML for the period to 29 July 2011 are $287,074 of which $279,349 has already been approved [Table 3].

Further fees will be incurred to progress and finalise the liquidation.

2 This includes legal fees paid by the CFAL litigation funding

Table 2 - Receipts and Payments for the period 8 February 2006 to 29 July 2011

NotesAmount

$

Receipts

Cash at bank 176,009

Investment 33,335

Litigation funding 166,200

Debtors 85,800

Settlement of preference 30,000

Interest 10,000

Other income 950

GST Refund 27,197

Total receipts 529,490

Payments

Liquidators' fees 4.1 83,273

Liquidators' disbursements 4.2 805

Legal fees2 4.3 279,958

Legal disbursements 6,451

Court application costs 4,807

Security for costs 45,000

Bank charges 84

Consulting fees 22,816

CFAL settlement 17,500

Other miscellaneous costs 1,142

Total payments 461,836

Cash at bank at 29 July 2011 67,654

Table 3 - Liquidators' fees for WML

Type of fees Approved Period Amount Paid Outstanding

Provisional Liquidators' fees Approved by court 08/02/06 - 10/04/06 99,635 - 99,635

Off icial Liquidators' fees Approved by creditors 11/04/06 - 12/11/10 255,416 75,703 179,714

Off icial Liquidators' fees To be approved 13/11/10 - 29/07/11 7,725 - 7,725

Total 362,776 75,703 287,074

The Liquidators’ fees which relate to the various entities of which WML is trustee or responsible entity will be payable from the assets of the relevant trusts and managed investment schemes, to the extent that those assets are sufficient. Some of the trusts may not have sufficient assets to pay the Liquidators’ fees. Accordingly, those fees will be payable by WML.

4.2 Liquidators’ disbursements

Liquidators’ disbursements incurred, but not yet paid, to date are $23,608 [Table 4].

4.3 Legal fees

To date, legal fees of $279,958 have been paid, including fees paid by the litigation funder in the CFAL litigation matter.

However, further legal fees of $576,457 have been incurred and remain outstanding [Table 5].

3

3 Further legal fees incurred in relation to WFS that were not paid from the settlement with Elderslie.

Table 4 - Liquidators' disbursements for the period 8 February 2006 to 29 July 2011

Amount

Advertising 2,298

Courier 412

Fax 798

Photocopies 3,509

Postage 672

Printing 1,964

Searches 3,324

Storage 4,249

Telephone 678

Travel expenses 2,718

Other 2,986

Total 23,608

Table 5 - Legal fees incurred and unpaid for the period 8 February 2006 to 29 July 2011

Entity Amount

WML 489,033

WFS3 87,423

Total 576,457

5 Summary of trusts and MISs

WML is trustee or responsible entity of the following trusts and managed investment schemes:

+ Westpoint Income Fund

+ Paragon Commercial Syndicate

+ Paragon Apartments Trust

+ 297 Murray Street Trust

+ 60 Market Street Trust

A summary of the status of each trust and MIS is provided below.

I have been reporting separately to the members of these trusts and schemes.

5.1 Westpoint Income Fund (“WIF”)

I am continuing the process of collecting WIF’s loan assets for the benefit of its creditors and investors. The following table provides a summary of the status of the loan assets [Table 6].

Table 6 – WIF loans Entity Balance4 Comments

Goldtag $2.0m There is no surplus available to WIF from the sale of the property owned by Goldtag to meet the purported debt of $2.0million owed to WIF. LM have provided evidence of cross-guarantees which exceeded the application of sale proceeds that I had been querying. Subject to the resolution of the debt owed by Lanepoint, I intend to seek a declaration from the Court to set aside the transaction that gave rise to this debt

Kingdream $6.5m I understand that LM has sold the property owned by Kingdream. I have requested an accounting of the sale proceeds from LM, but this has not yet been received. There is no surplus available to WIF from this loan to meet the purported increase of $2.2million in debt owed by Kingdream. This debt was guaranteed by a number of entities within the Westpoint Group, of which one, Earlmist Pty Ltd, may come into funds. I have issued a letter of demand against Earlmist pursuant to the guarantee. Subject to the resolution of the debt owed by Lanepoint, I intend to seek a declaration from the Court to set aside the transaction that gave rise to this debt.

Lanepoint $2.3M The amount of WIF’s loan to Lanepoint is disputed due to the transfers of debt to Goldtag and Kingdream Lanepoint was placed into liquidation in May 2009 upon the presentation of an application by ASIC. Lanepoint appealed this judgement and was successful in having the liquidation stayed, pending determination of the amount of the debt owed to WIF. The ASIC were granted leave to appeal this decision to the High Court and were successful. I am discussing the resolution of the matters in dispute with the liquidator of Lanepoint. I expect that the issues will be resolved by way of seeking a declaration from the Court. This debt was also guaranteed by Earlmist but I have not yet issued a formal demand.

4 This is the book value according to WIF’s accounts at the date of my appointment. All loan balances are disputed.

My ongoing role for WIF is to:

+ Finalise the discussions with the liquidator of Lanepoint;

+ Progress the letters of demand against Earlmist;

+ Prepare the documentation supporting these legal matters; and

+ Distribute the remaining surplus funds (if any) to WIF’s investors.

5.2 Paragon Commercial Syndicate (“PCS”)

As background, Westpoint Management (Centreways) Pty Ltd as trustee for the Centreways Refurbishment Syndicate Trust (“CRST”) lodged proofs of debt relating to principal and interest due on a loan owed by PCS to it. These proofs of debt were rejected and CRST commenced proceedings to have the decision overturned.

All legal proceedings relating to CRST were settled and investors in the fund have been separately advised of that outcome.

The ultimate distribution to investors will be determined by the finalisation of the taxation issues within the fund.

My continuing role for PCS is to:

+ Finalise the taxation matters; and

+ Distribute any remaining surplus funds to investors.

5.3 Paragon Apartments Trust (“PAT”)

I am awaiting the outcome of the ING receivership as PAT’s property assets were pledged to secure the debts of other Westpoint entities to ING.

Once the ING receivership is completed, I will:

+ Adjudicate and pay PAT’s unsecured creditor claims; and

+ Complete the winding up of the trust.

5.4 Murray Street Trust

I am awaiting the outcome of the ING receivership. It is my view that this Trust has been the largest contributor to the repayment of the debt owed to ING.

Once the ING receivership is completed, I will:

+ Review the Receivers and Managers’ calculation for any claims of contribution, subrogation and indemnity to protect the Murray Street Trust’s interests;

+ Realise the remaining properties (if any); and

+ Complete the winding up of the trust.

5.5 Market Street Trust

I am awaiting the outcome of the Receivership of the Market Street development.

Once the Perpetual receivership is completed, I will complete the winding up of the trust.

6 Liquidators’ remuneration

Under a Court order obtained on 30 June 2006, the Liquidators are entitled to recover their remuneration incurred in each of the schemes and trusts from the assets of the relevant scheme/trust. If insufficient funds are available in the relevant scheme/trust, the Liquidators are entitled to recover their remuneration from WML’s assets.

6.1 Remuneration previously approved

At previous meetings of creditors, Liquidators’ remuneration totalling $1,828,430 for the period 8 February 2006 to 12 November 2010 has been approved as follows:

6.2 Approval sought for work completed

The Liquidators’ remuneration incurred for the period 13 November 2010 to 29 July 2011 was $130,908 (excluding GST) as follows [Table 8]:

Accordingly, the following resolution will be proposed at the forthcoming meeting of creditors to be held on 30 August 2011:

“That the remuneration of the Official Liquidators of Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed) for the period 13 November 2010 to 29 July 2011 is approved for payment in the sum of $130,908 (exclusive of GST).”

I enclose at Appendix 1 details of the fees for which approval is being sought.

Table 7 - Liquidators' fees approved at previous creditors' meetings

EntityAmount $ (ex GST)

WML 255,416

WIF 620,127

PCS 470,643

WFS 134,677

PAT 82,227

WCST 233,049

Market Street 18,184

Murray Street 14,107

Total 1,828,430

Table 8 - Liquidators' fees for the period 13 November 2010 to 29 July 2011


WML 7,725

WIF 48,360

PCS 71,103

PAT 2,274

Market Street 790

Murray Street 657

Total 130,908

6.3 Approval sought for future fees

Approval is being sought for future remuneration capped at $267,500 (excluding GST) as follows [Table 9]:

Accordingly, the following resolution to be proposed at the forthcoming meeting:

“That the future remuneration of the Official Liquidators of Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed) be capped in the sum of $267,500 for the period from 30 July 2011, except that, in the event that unforeseen circumstances arise which requires work to be done in excess of that which is presently anticipated, a further remuneration report will be provided and approval sought for further remuneration.”

I enclose at Appendix 2 details of the fees for which approval is being sought.

Table 9 - Liquidators' future fees to be approved


WML 20,000

PCS 75,000

WIF 130,000

PAT 30,000

Market Street 2,500

Murray Street 10,000

Total 267,500

7 Creditors’ meeting

I have convened a meeting of creditors of WML to be held at 12.00 pm on 30 August 2011 at Level 17, 37 St Georges Terrace, Perth WA.

The purpose of this meeting is to:

+ Provide creditors with an update on the progress and conduct of the liquidation; and

+ Seek creditors’ approval for the Liquidators’ remuneration.

Creditors who require further details should please contact Melinda Rivera of this office on (08) 6363 7636.

Simon Read Liquidator

Appendix 1

WESTPOINT MANAGEMENT LTD (RECEIVERS AND MANAGERS APPOINTED) (IN LIQUIDATION)ACN 074 148 431

Summary of claim for remuneration by Official Liquidators for the period 13 November 2010 to 29 July 2011

Breakdown by entity

Hours ChargeWestpoint Management Ltd 23.20 7,725.00 Paragon Commercial Syndicate 176.70 71,102.50 Westpoint Income Fund 117.00 48,360.00 Paragon Apartment Trust 7.80 2,274.00 297 Murray Street Trust 3.50 656.50 60 Market Street Trust 2.00 790.00 Total 330.20 130,908.00 GST 13,090.80 TOTAL (including GST) 143,998.80

Breakdown by category

Hours ChargeAssets 47.40 21,633.00 Creditors 111.50 46,973.50 Investigation 21.00 9,799.50 Administration 150.30 52,502.00 Total 330.20 130,908.00 GST 13,090.80 TOTAL (including GST) 143,998.80

Breakdown by person

Rate ($/hr) Hours Charge $Simon Read Partner 570.00 75.80 43,206.00 Bruce Land Senior Manager 420.00 67.20 28,224.00 Melinda Rivera Senior Manager 420.00 5.10 2,142.00 Melinda Rivera Manager 1 395.00 121.10 47,834.50 Summer Nguyen Senior Accountant 250.00 0.60 150.00 Alice O'Rourke Accountant 210.00 2.60 546.00 Jackson Biddulph Accountant 210.00 0.80 168.00 Christopher Hopa Undergraduate 190.00 1.00 190.00 Lisa Jones Undergraduate 190.00 2.50 475.00 Mary Agostino Senior Administrator 160.00 36.30 5,808.00 Charlotte Reynolds Personal Assistant 135.00 6.20 837.00 Elley Faul Group Secretary 115.00 0.50 57.50 Fenny Hadiwinata Clerical 160.00 2.30 368.00 Fenny Hadiwinata Clerical 110.00 2.90 319.00 Angela Gamble Clerical 110.00 1.50 165.00 Teagan Draper Clerical 110.00 1.00 110.00 Natasha Lipiec Clerical 110.00 2.80 308.00 Total 330.20 130,908.00 GST 13,090.80 TOTAL (including GST) 143,998.80

Entity

Position13/11/10 ‐ 29/7/11

13/11/10 ‐ 29/7/11

13/11/10 ‐ 29/7/11

Name

Category

Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed)ACN 074 148 431

Remuneration Summary Spreadsheet for the period 13 November 2010 to 29 July 2011

Total($)

hrs $ hrs $ hrs $ hrs $Simon Read Partner 570.00 0.50 285.00 0.30 171.00 ‐ ‐ ‐ ‐ 0.20 114.00 Bruce Land Senior Manager 420.00 7.90 3,318.00 0.20 84.00 7.70 3,234.00 ‐ ‐ ‐ ‐ Melinda Rivera Senior Manager 420.00 0.30 126.00 0.10 42.00 ‐ ‐ ‐ ‐ 0.20 84.00 Melinda Rivera Manager 1 395.00 7.10 2,804.50 1.50 592.50 0.70 276.50 ‐ ‐ 4.90 1,935.50 Alice O'Rourke Accountant 210.00 1.60 336.00 ‐ ‐ 1.60 336.00 ‐ ‐ ‐ ‐ Mary Agostino Senior Administrator 160.00 4.00 640.00 ‐ ‐ ‐ ‐ ‐ ‐ 4.00 640.00 Elley Faul Group Secretary 115.00 0.50 57.50 ‐ ‐ 0.50 57.50 ‐ ‐ ‐ ‐ Fenny Hadiwinata Clerical 160.00 0.30 48.00 ‐ ‐ ‐ ‐ ‐ ‐ 0.30 48.00 Fenny Hadiwinata Clerical 110.00 1.00 110.00 ‐ ‐ ‐ ‐ ‐ ‐ 1.00 110.00

7,725.00 2.10 889.50 10.50 3,904.00 ‐ ‐ 10.60 2,931.50 772.50 8,497.50

Employee Position $/hour(ex GST)

Total actual hours

Task AreaAssets Creditors Investigation Administration

TOTALGSTTOTAL (including GST)

Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed) ACN 074 148 431

Task Area General Description Includes

Assets [$899.50]

Realisation of assets + Corresponded and liaised with Receivers and Managers concerning status and release of apartment owned by WML.

+ Reviewed legal advice concerning payment of management fees.

Creditors [$3,904.00]

Unsecured creditors + Attended to queries from unsecured creditors. + Corresponded with unsecured creditors as

required. + Reviewed proofs of debt received and added to

creditor’s register. + Prepared update report to creditors including:

- updated statement of position; - status of realisation of assets; and - summary of receipts and payments to date.

Meeting of Creditors + Ensured quorum will be obtained for meeting of creditors.

+ Liaised with creditors concerning attendance at creditors’ meeting.

+ Prepared meeting file including: - agenda; and - attendance register.

+ Attended creditors’ meeting. + Prepared minutes of meeting and arranged for

lodgement at ASIC.

Administration [$2,931.50]

Document maintenance/file review/checklist

+ Attended internal meetings to discuss: - progress of liquidation; and - tasks to complete.

+ Updated work plan and prepared action list of outstanding issues.

+ Reviewed and update checklist to ensure statutory items has been complied with.

+ Attended to general care and maintenance of the file.

+ Attended to typing and secretarial duties as required.

ASIC Form 524 and other forms

+ Attended to preparation and lodgement of ASIC Form 524 – Six-monthly Receipts and Payments.

Bank account administration

+ Attended to payment of liabilities. + Reviewed legal invoices received and ensured

allocated to appropriate entity. + Attended to depositing funds received. + Attended to maintaining and reconciling the bank

account.

ATO & other statutory reporting

+ Attended to preparation of Business Activity Statements.

+ Considered tax position of WML and requirement to lodge income tax returns.

+ Fees + Prepared breakdown of fees to be approved and

task summary for the period 19 September 2009 to 12 November 2010 to include in the report to creditors.

Total [$7,725.00]

Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed)ACN 074 148 431As Responsible Entity for the Paragon Commercial Syndicate


Total($)

hrs $ hrs $ hrs $ hrs $Simon Read Partner 570.00 40.40 23,028.00 ‐ ‐ 26.80 15,276.00 ‐ ‐ 13.60 7,752.00 Bruce Land Senior Manager 420.00 26.30 11,046.00 ‐ ‐ 24.50 10,290.00 0.30 126.00 1.50 630.00 Melinda Rivera Senior Manager 420.00 2.00 840.00 ‐ ‐ 0.10 42.00 0.70 294.00 1.20 504.00 Melinda Rivera Manager 1 395.00 81.10 32,034.50 ‐ ‐ 16.10 6,359.50 0.80 316.00 64.20 25,359.00 Mary Agostino Senior Administrator 160.00 22.10 3,536.00 ‐ ‐ ‐ ‐ ‐ ‐ 22.10 3,536.00 Charlotte Reynolds Personal Assistant 135.00 2.40 324.00 ‐ ‐ 1.00 135.00 ‐ ‐ 1.40 189.00 Fenny Hadiwinata Clerical 160.00 0.60 96.00 ‐ ‐ ‐ ‐ ‐ ‐ 0.60 96.00 Fenny Hadiwinata Clerical 110.00 0.80 88.00 ‐ ‐ ‐ ‐ ‐ ‐ 0.80 88.00 Teagan Draper Clerical 110.00 1.00 110.00 ‐ ‐ 1.00 110.00 ‐ ‐ ‐ ‐


Total actual hours


71,102.50 ‐ ‐ 69.50 32,212.50 1.80 736.00 105.40 38,154.00 7,110.25 78,212.75


Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed) ACN 074 148 431 As Responsible Entity for the Paragon Commercial Syndicate



Unsecured creditors + Corresponded and liaised with Mallesons Stephen Jaques concerning: - Advice required on pre-appointment debt

owed to responsible entity; - Mediation and next steps in litigation; - Interest calculation on CRST claim; - Strategy for mediation conference; - Terms of Settlement Deed; - Settlement timing; - Affidavits required for Gemspark and

Bowesco directions; and - Stamp duty implications on Settlement Deed.

+ Reviewed PCS’s records for other evidence requested by Mallesons Stephen Jaques.

+ Collated substantial evidence as required by Mallesons.

+ Reviewed and provided comments on Settlement Deed.

+ Liaised and corresponded with Mony de Kerloy (on behalf of CRST) concerning progress of claim including the core elements of our claim and mediation.

+ Prepare for and attend mediation conference. + Prepared update report to creditors and

reviewed assets available to syndicate. + Attended internal meetings to discuss status of

CRST claim and process to progress claim. Investors + Attended to numerous queries from investors

and financial planners. + Attended to teleconferences with investor

committee to provide updates on the progress of the liquidation, particularly about claim against the former auditor.

+ Reviewed and attended to correspondence from financial advisers.

+ Prepared and sent Investor Relations Update to investors on the progress of the liquidation.

+ Attended to placing Investor Relations Update on the website.

+ Updated investor register as required. Investigation [$736.00]

Conducting investigation

+ Reviewed audit report and assessed whether a claim against the former auditor exists.

ASIC + Reviewed file for correspondence with ASIC concerning notification requirements of settlement with CRST.

+ Review confidentiality terms of Settlement Deed to determine whether details can be released to ASIC.






+ Attended to typing and secretarial duties as required.


+ Attended to maintaining and reconciling the bank account.

+ Attended to payment of liabilities. ATO & other statutory reporting


+ Attended to preparation of schedules of receipts and payments to attach to ASIC Forms 524 – six monthly receipts and payments

Fees + Prepared breakdown of fees to be approved by creditors and task summary for the period 19 September 2009 to 12 November 2010 to include in the report to creditors.

Tax returns + Prepared detailed letter and supporting documentation to provide instructions to tax accountants to prepare outstanding tax returns for 2005 to 2011 including: - Preparing liquidator’s receipt and payment

summaries on an accruals basis; - Preparing schedule of investor distributions to

reconcile to tax returns for each financial year;

- Locating evidence of debtor write-offs; - Liaising with the Receivers and Managers

concerning their tax returns; and - Reconciling non-resident TFN withholding tax

withheld and paid. + Attend meeting with tax accountants to review

and clarify issues arising out of letter.

Total [$71,102.50]

Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed)ACN 074 148 431As Responsible Entity for the Westpoint Income Fund


Total($)

hrs $ hrs $ hrs $ hrs $Simon Read Partner 570.00 34.40 19,608.00 14.50 8,265.00 5.60 3,192.00 7.50 4,275.00 6.80 3,876.00 Bruce Land Senior Manager 420.00 33.00 13,860.00 12.10 5,082.00 9.80 4,116.00 9.80 4,116.00 1.30 546.00 Melinda Rivera Senior Manager 420.00 2.50 1,050.00 0.30 126.00 1.40 588.00 ‐ ‐ 0.80 336.00 Melinda Rivera Manager 1 395.00 27.20 10,744.00 15.60 6,162.00 2.50 987.50 1.60 632.00 7.50 2,962.50 Summer Nguyen Senior Accountant 250.00 0.60 150.00 ‐ ‐ 0.60 150.00 ‐ ‐ ‐ ‐ Alice O'Rourke Accountant 210.00 1.00 210.00 ‐ ‐ 1.00 210.00 ‐ ‐ ‐ ‐ Jackson Biddulph Accountant 210.00 0.80 168.00 ‐ ‐ 0.80 168.00 ‐ ‐ ‐ ‐ Christopher Hopa Undergraduate 190.00 1.00 190.00 ‐ ‐ 1.00 190.00 ‐ ‐ ‐ ‐ Lisa Jones Undergraduate 190.00 2.50 475.00 ‐ ‐ 2.50 475.00 ‐ ‐ ‐ ‐ Mary Agostino Senior Administrator 160.00 4.90 784.00 ‐ ‐ ‐ ‐ ‐ ‐ 4.90 784.00 Charlotte Reynolds Personal Assistant 135.00 3.80 513.00 ‐ ‐ 3.50 472.50 0.30 40.50 ‐ ‐ Fenny Hadiwinata Clerical 160.00 0.50 80.00 ‐ ‐ ‐ ‐ ‐ ‐ 0.50 80.00 Fenny Hadiwinata Clerical 110.00 0.50 55.00 ‐ ‐ ‐ ‐ ‐ ‐ 0.50 55.00 Angela Gamble Clerical 110.00 1.50 165.00 ‐ ‐ ‐ ‐ ‐ ‐ 1.50 165.00 Natasha Lipiec Clerical 110.00 2.80 308.00 ‐ ‐ 2.80 308.00 ‐ ‐ ‐ ‐


Total actual hours


48,360.00 42.50 19,635.00 31.50 10,857.00 19.20 9,063.50 23.80 8,804.50 4,836.00 53,196.00


Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed) ACN 074 148 431 As Responsible Entity for the Westpoint Income Fund


Assets [$19,635.00]

Lanepoint loan + Attended meetings and liaised with Clayton Utz concerning: - Writ issued by Lanepoint against WIF and Simon

Read; - Application to stay Lanepoint litigation pending the

outcome of ASIC’s High Court appeal to wind up Lanepoint;

- Steps to take to resolve Lanepoint litigation; and - Conflict position of liquidator of Lanepoint.

+ Preparation of material required to defend Lanepoint litigation including reviewing ASIC database of documents for evidence to support defence.

+ Reviewed and provided comments on Statement of Defence.

+ Liaised and corresponded with the WIF-appointed Receivers and Managers of Lanepoint concerning: - Tax return issues; and - Writ issued by Lanepoint against WIF and Simon

Read. + Corresponded with Lanepoint’s solicitors. + Reviewed the court judgement on the outcome of the

ASIC’s High Court appeal to wind up Lanepoint. + Attended meeting with liquidator of Lanepoint to

discuss debt issue. + Attended internal meetings to discuss:

- Options available to defeat debt transfers; and - Steps forward to wind up MIS.

Other Assets + Prepared, reviewed and updated statement of position to determine likely return to investors.



Unsecured creditors + Prepared update report to creditors including status of realisation of loans.

Investors + Maintained investor register. + Attended to numerous queries from investors and

financial planners. + Prepared and sent Investor Relations Updates to

investors on the progress of the liquidation particularly in relation to claim against former auditor.

+ Attended to placing Investor Relations Updates on the website.

Investigation [$9,063.50]

ASIC + Corresponded with ASIC concerning impact of auditor settlement on investors.

Investigation + Gathered evidence to support potential claim against former auditor.

+ Attended internal meetings to discuss potential of claim against the former auditors including potential claim for damages.

+ Obtained legal advice on potential claim against former auditor.

+ Liaised with Clayton Utz concerning: - Potential claims available to investors; and - Strategy to deal with ASIC’s decision not to include

WIF in the settlement with the auditors.




+ Attended to general care and maintenance of the file.+ Attended to typing and secretarial duties as required.


+ Attended to payment of liabilities. + Attended to maintaining and reconciling the bank

accounts. + Corresponded with bank concerning transfers

between bank accounts. Taxation + Liaised with accountants concerning preparation of

outstanding tax returns. + Researched tax issues and possible deductible

Collated documents to provide to accountants to prepare 2011 tax return.


+ Attended to preparation of schedules of receipts and payments to attach to ASIC Form 524 – Six-monthly Receipts and Payments.



+ Attended to BAS Audit by the ATO including collating and sending documents requested by the ATO.


Total [$48,360.00]

Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed)ACN 074 148 431As Trustee for the Paragon Apartments Trust


Total($)

hrs $ hrs $ hrs $ hrs $Simon Read Partner 570.00 0.50 285.00 ‐ ‐ ‐ ‐ ‐ ‐ 0.50 285.00 Melinda Rivera Senior Manager 420.00 0.20 84.00 0.10 42.00 ‐ ‐ ‐ ‐ 0.10 42.00 Melinda Rivera Manager 1 395.00 3.40 1,343.00 0.70 276.50 ‐ ‐ ‐ ‐ 2.70 1,066.50 Mary Agostino Senior Administrator 160.00 2.50 400.00 ‐ ‐ ‐ ‐ ‐ ‐ 2.50 400.00 Fenny Hadiwinata Clerical 160.00 0.60 96.00 ‐ ‐ ‐ ‐ ‐ ‐ 0.60 96.00 Fenny Hadiwinata Clerical 110.00 0.60 66.00 ‐ ‐ ‐ ‐ ‐ ‐ 0.60 66.00


Total actual hours


2,274.00 0.80 318.50 ‐ ‐ ‐ ‐ 7.00 1,955.50 227.40 2,501.40


Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed) ACN 074 148 431 As Trustee for the Paragon Apartments Trust

Task Area General Description Includes Assets [$318.50]

Other assets + Liaised with KordaMentha concerning: - progress of sale of apartment jointly owned by PAT

and Paragon Apartments Limited; and - legal action being taken against PAT and Paragon

Apartments Limited to remove caveats on property.




+ Updated work plan and prepared task list of outstanding issues.

+ Attended to general care and maintenance of the file.+ Attended to typing and secretarial duties as required.


+ Attended to maintaining and reconciling the bank account.


+ Attended to preparation of schedules of receipts and payments to attach to ASIC Form 524 – Six-monthly Receipts and Payments.




Total [$2,274.00]

Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed)ACN 074 148 431As Trustee for the 297 Murray Street Trust


Total($)

hrs $ hrs $ hrs $ hrs $Melinda Rivera Senior Manager 420.00 0.10 42.00 ‐ ‐ ‐ ‐ ‐ ‐ 0.10 42.00 Melinda Rivera Manager 1 395.00 0.30 118.50 ‐ ‐ ‐ ‐ ‐ ‐ 0.30 118.50 Mary Agostino Senior Administrator 160.00 2.80 448.00 ‐ ‐ ‐ ‐ ‐ ‐ 2.80 448.00 Fenny Hadiwinata Clerical 160.00 0.30 48.00 ‐ ‐ ‐ ‐ ‐ ‐ 0.30 48.00

Investigation AdministrationEmployee Position $/hour

(ex GST)Total actual hours

Task AreaAssets Creditors

656.50 ‐ ‐ ‐ ‐ ‐ ‐ 3.50 656.50 65.65 722.15 TOTAL (including GST)

TOTALGST

Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed) ACN 074 148 431 As Trustee for the 297 Murray Street Trust


Administration [$656.50]






Total [$656.50]

Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed)ACN 074 148 431As Responsible Entity for the 60 Market Street Trust


Total($)

hrs $ hrs $ hrs $ hrs $Melinda Rivera Manager 1 395.00 2.00 790.00 2.00 790.00 ‐ ‐ ‐ ‐ ‐ ‐

Investigation Administration

790.00 2.00 790.00 ‐ ‐ ‐ ‐ ‐ ‐ 79.00 869.00 TOTAL (including GST)

TOTALGST


Total actual hours

Task AreaAssets Creditors

Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed) ACN 074 148 431 As Trustee for the 60 Market Street Trust

Task Area General Description Includes Assets [$790.00]

Other assets + Reviewed and analysed company records to determine whether there is a pre-appointment GST claim that should be pursued.

Total [$790.00]

Appendix 2

WESTPOINT MANAGEMENT LTD (RECEIVERS AND MANAGERS APPOINTED) (IN LIQUIDATION)ACN 074 148 431

Breakdown by entityEstimated Charge

Westpoint Management Ltd 20,000 Paragon Commercial Syndicate 75,000 Westpoint Income Fund 130,000 Paragon Apartment Trust 30,000 297 Murray Street Trust 10,000 60 Market Street Trust 2,500 Total 267,500 GST 26,750 TOTAL (including GST) 294,250

Breakdown by categoryEstimated Charge

Assets 112,500 Creditors 75,000 Investigation 15,000 Administration 65,000 Total 267,500 GST 26,750 TOTAL (including GST) 294,250

Summary of claim for estimated future remuneration by Official Liquidators for the period subsequent to 29 July 2011

Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed) ACN 074 148 431


Assets [$10,000]

Investments + Corresponding with the former receivers and managers concerning the apartment owned by WML.

+ Organising disposal of the apartment. + Determining the extent of any claim for subrogation

that WML has in relation to the deposit applied against the secured creditor’s debt.

+ Finalising position with respect to debts owed by the MIS to WML for unpaid RE fees incurred prior to the liquidation.

Creditors [$5,000]

Unsecured creditors + Attending to queries from unsecured creditors. + Corresponding with unsecured creditors as required. + Preparing update reports to creditors including:

- updated statement of position; - status of realisation of assets; and - summary of receipts and payments to date.

Meetings of Creditors + Convening meetings of creditors as required, including ensuring quorums in place.

+ Liaising with creditors concerning attendance. + Preparation of all documents pertaining to the

meeting including: - agenda; and - attendance register.

+ Attending creditors’ meeting. + Preparing minutes of meeting and arranging for

lodgement at ASIC.

Administration [$5,000]


+ Attending to internal meetings to discuss: - progress of liquidation; and - tasks to complete.

+ Updating work plans and action lists of outstanding issues.

+ Reviewing and updating checklists to ensure statutory items has been complied with.

+ Attending to typing and secretarial duties as required. ASIC Form 524 and other forms

+ Attending to preparation and lodgement of ASIC Form 524 – Six-monthly Receipts and Payments.


+ Attending to payment of liabilities. + Reviewing any legal invoices received and ensuring

allocated to appropriate entity. + Attending to depositing funds received. + Attending to maintaining and reconciling the bank

account. ATO & other statutory reporting

+ Attending to preparation of Business Activity Statements.

Fees + Preparing breakdown of fees as required.

Task Area General Description Includes Total [$20,000]

Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed) ACN 074 148 431 As Responsible Entity for the Paragon Commercial Syndicate


Creditors [$40,000]

Unsecured creditors + Dealing with claim for unpaid RE fees incurred prior to liquidation, including possible Court process.

Investors + Attending to queries from investors and financial planners.

+ Attending to teleconferences with investor committee to provide updates on the progress of the liquidation.

+ Reviewing and attending to correspondence from financial advisers.

+ Preparing and sending Investor Relations Update to investors on the progress of the liquidation.

+ Attending to placing Investor Relations Update on the website.

+ Updating investor register as required. + Preparing materials for final meeting of investors. + Preparing and sending out final distribution to

investors.

Investigation [$10,000]

ASIC + Corresponding and attending meetings with ASIC as required.

+ Corresponding with Axiom Forensics concerning creditor claims and investor verification as required.



+ Attending internal meetings to discuss: - progress of liquidation; and - tasks to complete.

+ Updating work plan and preparing action list of outstanding issues.

+ Attending to general care and maintenance of the file.

+ Attending to typing and secretarial duties as required.


+ Attending to maintaining and reconciling the bank account.

+ Attending to payment of liabilities. ATO & other statutory reporting


+ Attending to preparation of schedules of receipts and payments to attach to ASIC Forms 524 – six monthly receipts and payments

Fees + Preparing breakdown of fees as required. Tax returns + Finalising taxation matters pertaining to the

syndicate and distribution schedules. + Finalising final accounts.

Total [$75,000]

Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed) ACN 074 148 431 As Responsible Entity for the Westpoint Income Fund


Assets [$75,000]

Kingdream loan + Prosecuting letter of demand against guarantors with subrogated claims.

Lanepoint loan + Finalising issues in dispute with liquidator of Lanepoint.

+ Prosecuting WIF’s claim against Lanepoint via legal process.

+ Corresponding with solicitors and WIF appointed Receivers and Managers.

+ Updating work plan and preparing action list of outstanding issues.

Goldtag loan + Finalising position of actual debt, if any, owed to WIF.

Other Assets + Finalising approach to take with the guarantors of the Kingdream and Goldtag loans.

Creditors [$30,000]

Unsecured creditors + Preparing update report to creditors including status of realisation of loans.

Investors + Maintaining investor register. + Attending to queries from investors and financial

planners. + Preparing and sending Investor Relations Updates to

investors on the progress of the liquidation. + Attending to placing Investor Relations Updates on

the website. Investor Meeting + Preparing for and attending investor meetings as

required

Investigation [$5,000]

ASIC + Liaising with ASIC concerning liquidation of Lanepoint.

+ Corresponding with Axiom Forensics concerning creditor claim and investor verification as required.

Investigation + Finalising position on potential claim against investment management committee.







+ Attending to payment of liabilities. + Attending to maintaining and reconciling the bank

accounts. + Corresponding with bank concerning transfers

between bank accounts.

Task Area General Description Includes Taxation + Attending meetings with accountants concerning

preparation of outstanding tax returns. + Finalising outstanding taxation returns and

distribution statements. ASIC Form 524 and other forms

+ Attending to preparation of schedules of receipts and payments to attach to ASIC Form 524 – Six-monthly Receipts and Payments.



Fees + Preparing breakdown of fees as required to be approved at a future meeting of creditors.

Total [$130,000]

Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed) ACN 074 148 431 As Trustee for the Paragon Apartments Trust


Assets [$20,000]

Other assets + Liaising with KordaMentha concerning sale of apartment jointly owned by PAT and Paragon Apartments Limited.

+ Liaising with KordaMentha concerning legal action being taken against PAT and Paragon Apartments Limited and appeal against delisting action.

+ Reviewing joint venture agreement. + Finalising where surplus funds to be paid.







+ Attending to maintaining and reconciling the bank account.


+ Attending to preparation of schedules of receipts and payments to attach to ASIC Form 524 – Six-monthly Receipts and Payments.



Fees + Preparing breakdown of fees for approval at a future meeting of creditors.

Total [$30,000]

Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed) ACN 074 148 431 As Trustee for the 297 Murray Street Trust

Task Area General Description Includes Assets [$5,000]

Other assets + Finalising position with respect to claims for subrogation and contribution.






Fees + Preparing breakdown of fees for approval at future meeting of creditors.

Total [$10,000]

Westpoint Management Ltd (In Liquidation) (Receivers and Managers Appointed) ACN 074 148 431 As Trustee for the 60 Market Street Trust


Assets [$2,500]

Receivership + Corresponding with Receivers and Managers to obtain an update on the status of receivership.

+ Reviewing Receivers and Managers’ Forms 524 Receipts and Payments lodged with ASIC.

Other assets + Updating work plan and preparing action list of outstanding issues.

Total [$2,500]