Chris & Sia Enterprises Pty Limited (In Liquidation) ACN ...Chris & Sia Enterprises Pty Limited (In...
Transcript of Chris & Sia Enterprises Pty Limited (In Liquidation) ACN ...Chris & Sia Enterprises Pty Limited (In...
Chris & Sia Enterprises Pty
Limited (In Liquidation)
ACN 082 736 285
Statutory Report by Liquidator
6 November 2018
Ferrier Hodgson is an affiliation of independent partnerships/entities
Liability limited by a scheme approved under the Professional Standards Legislation
Level 25, One International Towers
Sydney, 100 Barangaroo Avenue,
SYDNEY NSW 2000
GPO Box 4114
SYDNEY NSW 2001
P. 02 9286 9999 F. 02 9286 9888 E. [email protected]
ferrierhodgson.com
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 1
Section Page
1 Introduction 2
2 Current position 2
3 Investigation into the Company’s affairs 3
4 Return to creditors 10
5 Liquidators’ remuneration and internal disbursements 10
6 Conclusion 11
Glossary 12
Annexures 13
A1 – Notice of proposal to creditors 14
A2 – Notice of proposal to creditors 15
A3 – Notice of proposal to creditors 16
A4 – Notice of proposal to creditors 17
B – Remuneration approval request 19
C – Proof of debt 30
Contents
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 2
1 Introduction Ryan Eagle and I were appointed as Liquidators of the Company on 6 August 2018 pursuant to an Order of the
Supreme Court - New South Wales.
We now take this opportunity to report to you on the following matters relating to the liquidation of the Company:
– An update on the progress of the liquidation;
– The current position in relation to the realisation of assets;
– The results of our investigations into the Company's affairs; and
– The likelihood of a dividend being paid in the liquidation.
This report should be read in conjunction with the information contained in our Initial Notice to Creditors dated 28
August 2018.
AIF holds a registered security interest over the Company’s all present and after acquired property. AIF is collecting
the Company’s debtor ledger and the proceeds from the sale of the Company’s business. In the event that AIF
recover sufficient funds to discharge their security interest, there may be sufficient funds to pay a dividend to
unsecured creditors.
In the event that sufficient funds are recovered to pay a dividend a further report will be issued to creditors.
2 Current position
Matters addressed during the liquidation
Since our appointment, the following matters have been attended to:
– Communications with the Directors of the Company;
– Communications with creditors of the Company;
– Collection and review of the books and records of the Company;
– Investigations into the location of any assets of the Company, including but not limited to making enquiries of
statutory bodies such as the Roads & Maritime Service and land titles registries;
– Tasks associated with the realisation of the assets of the Company, being debtors and the proceeds of sale of
the Business;
– Investigations into the recovery of potential unfair preference payments and other antecedent transactions;
– Attendance to statutory requirements; and
– Investigation into the affairs of the Company. Liquidators’ realisations to date
Summary of receipts and payments
A summary of the receipts and payments in the liquidation to date is attached as Part 6 of Annexure B.
Creditors are advised that the Liquidators’ account of receipts and payments can be inspected at the offices of Ferrier
Hodgson, Level 25, One International Towers Sydney, 100 Barangaroo Avenue, Sydney New South Wales during
business hours.
Asset realisations
We have set out below a summary of the RATA for the Company as submitted to us by the Directors showing the
ERV of assets, together with realisations to date applicable to those assets:
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 3
RATA ERV
$
Realisations to date
$
Cash at bank 562 1,950
Sundry debtors 438,631 9,787
Motor vehicles 85,000 Nil
Total assets 524,193 11,737
We make the following comments in relation to our investigations in relation to the Company’s assets:
2.1.2.1 Cash at bank
The Company held one bank account which had a balance of $1,950.03 at the date of our appointment. Subsequent
to our appointment, further debtor funds were deposited into this account after the date of liquidation. The account
was closed on 14 August 2018 with a balance of $11,736.74 transferred to the Liquidators’ bank account.
2.1.2.2 Sundry debtors
The RATA disclosed debtors owing to the Company with an ERV of $438,630.83. Debtors are subject to the
registered security interest of AIF who are taking steps to collect debts directly. In the event that AIF collects sufficient
funds to discharge their security interest, any surplus recoveries will be accounted for to the Liquidators.
The sum of $9,786.71 was deposited by debtors directly to the Company’s pre-liquidation bank account subsequent to
our appointment. These funds have been paid to AIF in accordance with their security interest.
2.1.2.3 Motor vehicles
The RATA disclosed two motor vehicles which were subject to finance arrangements. Our enquiries have confirmed
that these vehicles and the associated finance agreements were transferred to D.K.A.K prior to our appointment as
part of the sale of Business transaction (refer to further information on this transaction at section 3.5.2).
In addition to the motor vehicles disclosed by the Directors, a search of the database maintained by the Roads &
Maritime Service revealed that the Company owned five other motor vehicles. Four of these vehicles were
unencumbered. These vehicles were also included in the sale to D.K.A.K.
An assessment of the leased vehicles confirmed that there was no equity in those vehicles and we have disclaimed
the leases to avoid any ongoing liability.
3 Investigation into the Company’s affairs As at the date of this report, our report pursuant to Section 533 of the Act on the outcome of our investigation into the
affairs of the Company has not been lodged with ASIC as our investigations into the affairs of the Company are yet to
be finalised. Once finalised, our report will be filed with ASIC.
The salient points from our investigations to date are summarised hereunder.
Statutory information
The Company was incorporated on 25 May 1998.
ASIC records reveal the following statutory information in relation to the Company at the date of our appointment:
Location Address
Registered office / Principal place of business 158 Marrickville Road Marrickville NSW 2204
Office held Name Date appointed Date ceased
Director Chris Phylactou 25/05/1998 N/A
Director / Secretary Athanasia Phylactou 25/05/1998 N/A
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 4
Shareholder Class of shares No. of shares held Fully paid
Chris Phylactou ORD 1 Yes
Athanasia Phylactou ORD 1 Yes
History of the Company and reasons for its failure
History of the Company
The Directors have advised that the Company operated a wholesale hospitality business trading as “Exotic Cuisine”
that prepared uncooked portioned protein (chicken/veal). Its customers included clubs and restaurants.
The Directors have advised the Business was sold 1 June 2018 to D.K.A.K. The sale to D.K.A.K. settled on 31 July
2018 just prior to the Company being placed into liquidation.
Reasons for failure
The Directors have advised that the reason for the Company’s financial difficulties was due to poor management of
the Company’s operations by staff during the Directors’ absence because of ill health. The Directors have also
attributed the failure to RLC’s decision to refuse supply and terminate a payment arrangement it had entered into with
the Company (refer to further comments at section 3.6.1.4).
The Company was wound up on the application of RLC filed on 9 July 2018. The debt due to RLC at the date of
liquidation was $1,525,178.49 in respect of goods supplied to the Company between 7 December 2015 and 15
February 2018.
The Liquidators attribute the failure of the Company to:
Poor strategic management of the Company;
Inadequate cashflow;
Insufficient working capital; and
Trading losses.
Books and records
Section 286 of the Act requires a company to keep written financial records that correctly record and explain the
company’s transactions, financial position and performance and would enable true and fair financial statements to be
prepared. The financial records must be retained for a period of seven years after the transactions covered by the
records are completed.
The failure to maintain books and records in accordance with Section 286 provides a rebuttable presumption of
insolvency which might be relied upon by a Liquidator in an application for compensation for insolvent trading.
The ATO has provided us with the Company’s RBA, SGC account, income tax account, correspondence with the
Company and case notes.
We have received records from the Directors and their solicitors including:
Contract for sale of the Business to D.K.A.K.;
Deed of covenant of assignment of lease dated 2 August 2018;
Bizval Valuation Report dated 18 July 2018;
Transfer of Lease from the Company to D.K.A.K.; and
A portable hard drive, not currently accessible, which we have been advised contains a copy of the Company’s
accounting records.
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 5
We have also received the following documents:
CBA Bank statements for the period 14 August 2018 to 6 August 2017;
Business Activity Statement for 2016 and 2017;
Factoring facility agreement with AIF;
General security deed with AIF;
Debtors ledger as at 16 August 2018;
FY17 income tax return;
Special purpose financial reports for FY15 to FY17; and
Draft special purpose financial report for FY18.
Based on our review of the books and records received, we believe the Company’s books and records were
maintained in accordance with Section 286 of the Act.
As we have not been able to access the Company’s electronic accounting records to date, we have not been able to
verify the accuracy of the information provided to us to date.
Deficiency statement
Based on the RATA received from the Directors and our investigations, the following is an indication of our current
assessment as to the ERV of the assets and liabilities of the Company:
RATA ERV
$
Liquidator’s ERV
$
Assets
Sundry debtors 438,631 Unknown
Cash on hand / cash at bank 562 1,950
Motor vehicles 85,000 Nil
Total assets 524,193 1,950
Liabilities
Preferred creditors 351,134 352,170
Secured creditors 126,000 Unknown
Unsecured creditors 1,691,352 1,721,424
Related party creditors - 823,752
Total liabilities 2,168,486 2,897,346
Estimated deficiency (1,644,293) (2,895,396)
Our comments are as follows:
Assets
Please refer to our comments at section 2.1.2 in relation to asset realisations.
Liabilities
3.4.2.1 Preferred creditors
The RATA disclosed an amount of $351,134.24 owed to the ATO for SGC debts.
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 6
The ATO has submitted a proof of debt for SGC in the amount of $352,169.78 for unpaid employee superannuation
entitlements for the period 1 July 2016 to 30 June 2017.
3.4.2.2 Secured creditors
AIF holds a registered security interest over all the present and after acquired property of the Company. This security
interest includes the debts due to the Company and the proceeds from the sale of the Business.
AIF had advised that the amount required to discharge its security at the date of liquidation was $182,629.78. AIF
have since lodged a proof of debt subject to their security interest indicating that the debt due at 6 September 2018
was only $133,697.86.
We have requested that AIF provide an accounting of collections to date, so we may determine whether there will be
funds available for unsecured creditors.
3.4.2.3 Unsecured creditors
We estimate the Company’s liability to unsecured creditors to be $1,721,423.93, principally comprised of the debts
due to RLC ($1.5m) and the ATO ($152k).
3.4.2.4 Related party creditors
The Directors have advised that they are creditors of the Company for outstanding loans. We have not been provided
with information regarding the loans to date. The Company’s financial statements disclose the following loans from the
Directors:
FY15
$
FY16
$
FY17
$
FY18 (draft)
$
Loan from Directors 44,817 778,897 805,433 823,752
Voidable transactions
Unfair preferences
Section 588FA of the Act gives the Liquidator 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).
Until we are able to access the Company’s accounting records (refer comments at section 3.3) we are unable to form
a view as to whether the Company has made payments to creditors that would constitute unfair preference payments.
Uncommercial transactions
Section 588FB of the Act requires the Liquidator to investigate transactions which may be deemed to be
uncommercial, having regard to the detriment to the Company (if any) suffered as a consequence of the transaction in
the period two years prior to the appointment.
In addition, Section 588FDA of the Act refers to “unreasonable director-related transactions” and requires the
Liquidator to investigate such transactions, having regard to the detriment to the Company (if any) suffered as a
consequence of the transaction.
The Directors have advised us that the business was sold to D.K.A.K. for $75,000, to be paid in weekly instalments
commencing from 8 June 2018. The contract for sale was exchanged on 1 June 2018 with settlement occurring on 31
July 2018.
We have been advised that D.K.A.K. is a company owned and controlled by the Directors’ adult children.
The sale price was apportioned as follows:
Equipment: $61,165
Goodwill: $5,000
Trading stock: $8,835
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 7
In support of the transaction, the Directors provided a business valuation report prepared by an independent firm. This
report concluded that due to the historical financial performance and position of the Business, it had no fair market
value.
The valuer considered the capitalisation of earnings method of valuation but because the future maintainable earnings
of the Company returned a negative value (based on trading results between FY15 and FY18), this method of
valuation could not be adopted.
The valuer also considered the net asset backing method of valuation. This method of valuation takes into account
tangible assets of the Company as disclosed in the Company’s FY18 balance sheet (in this case plant and equipment
($24,094) and motor vehicles ($221,074). There had been no material movement in the value of these assets from
FY17. This valuation method determined an enterprise value of $245,000. However, after taking into account
adjustments for the Company’s current assets and total liabilities, the Company’s equity value was also determined to
be Nil.
We have raised a number of concerns with the Directors in relation to the values attributed to equipment and trading
stock in the sale contract. In particular, the draft FY18 accounts record closing stock on hand at 30 June 2018 of
$115,000. Only $8,835 has been attributed to stock in the sale. We have been advised that the information we have
requested to assess the value for stock and equipment is included on a hard drive which we have been unable to
access at this stage.
Our enquiries into the sale of the Business are continuing at this stage.
Unfair loans
Section 588FD of the Act requires investigations of transactions which may be deemed to be unfair loans to the
Company. A loan to the Company is considered to be unfair if and only if, interest on the loan is extortionate, or the
charges in relation to the loan were extortionate.
From the information available to us we have not identified any transactions which would constitute unfair loans to the
Company.
Voidable transactions – related parties
Section 588FE(4) of the Act requires investigations of transactions which may be deemed to be insolvent transactions
with a related party entered into within 4 years of the commencement of the winding up.
From the information available to us, we have not identified any transactions which would constitute voidable
transactions with related parties in addition to the sale of Business discussed in Section 3.5.2.
Insolvent trading
Section 588G of the Act provides that directors are obliged to prevent a company from:
– Incurring a debt whilst insolvent; or
– 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.
Indicators of insolvency
From a review of the financial information provided to us, we have identified the following indicators of insolvency:
3.6.1.1 Endemic shortage of working capital – balance sheet test
According to the available financial statements, it would appear that the Company had net asset and working capital
positions as follows:
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 8
Net asset position (total assets less total liabilities)
FY15
$
FY16
$
FY17
$
FY18 (draft)
$
Total assets 1,092,024 1,332,894 1,034,476 1,339,446
Total liabilities 2,101,716 2,492,719 2,767,093 3,343,142
Net asset surplus / (deficiency) (1,009,692) (1,159,825) (1,732,617) (2,003,696)
Working capital position (current assets less current liabilities)
FY15
$
FY16
$
FY17
$
FY18 (draft)
$
Current assets 641,643 874,462 527,672 831,734
Current liabilities 1,411,451 444,453 726,794 1,151,117
Working capital surplus / (deficiency) (769,808) (430,009) (199,122) (319,383)
It appears that working capital was insufficient to meet the Company’s obligations as and when they fell due from at
least 30 June 2015.
3.6.1.2 Availability of other cash resources – cash flow test
Profitability
According to the available financial statements, it would appear that the Company had trading results as follows:
FY15
$
FY16
$
FY17
$
FY18 (draft)
$
Sales 5,475,041 4,944,176 4,431,183 4,233,268
Cost of sales 3,856,459 3,541,924 2,993,894 2,956,691
Gross profit 1,618,582 1,402,252 1,437,289 1,276,577
Expenses 1,764,745 1,481,546 1,510,484 1,435,928
Net profit / (loss) (146,163) (79,294) (73,195) (159,351)
The Company incurred trading losses from FY15 until the date of our appointment.
Access to alternative sources of finance
The Directors advised that they obtained funding to improve cashflow through invoice financing with AIF. AIF took
over from the Company’s previous invoice financier, Scottish Pacific Business Finance, just prior to liquidation.
The Directors also advised that the Company did not have any significant assets or security to offer to secure any
other source of finance other than unsecured loans from their own personal resources.
The Company’s financial statements reflect loans from the Directors in the sum of $823,752. The majority of these
funds were advanced during FY16 ($734,080). Between 1 July 2016 and 30 June 2018, the Directors advanced
approximately $44,855 to assist with working capital requirements.
Disposal of non-core assets
We are not aware of any non-core assets which the Company could dispose of in order to assist with the payment of
current liabilities.
Dishonoured payments
We have not identified any dishonoured payments made by the Company.
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 9
3.6.1.3 Overdue Commonwealth and State taxes
The debt due to the ATO at the date of liquidation is $504,321.11 comprised of RBA debts ($152,151.33) and SGC
($352,169.78). The RBA debt has continued to accrue since 19 November 2016 and the SGC debt from 1 July 2016.
At the date of liquidation, the Company had outstanding BAS’ for the period June to August 2018, income tax returns
and PAYG payment summaries for FY18 and FY19.
Information provided by the ATO confirms that the Company entered into multiple payment arrangements in respect of
its SGC and RBA debts as far back as 2 December 2016 (which was breached on 3 April 2017).
3.6.1.4 Creditor forbearances / communications
The Directors have advised that creditors began pressing for payment of debts in mid-2017.
Based on the information provided to us, RLC requested full payment of its debt ($1,355,677.21) within 7 days on 29
April 2016. On 14 July 2017, the Company acknowledged the debt due to RLC in the sum of $1,425,740.56 and
confirmed a payment schedule for $1,175.740.56 (Old Debt) comprising:
– 26 weekly payments of $6,000 commencing 7 July 2017 and ending 29 December 2017;
– 26 weekly payments of $9,000 thereafter;
– 13 weekly payments of $10,000 thereafter; and
– 13 weekly payments of $12,000 thereafter to repay the balance of the Old Debt.
A review of the available bank statements for the Company indicates that the payment plan for the Old Debt was first
breached on 11 August 2017 after which the Company only made 15 out of the scheduled 20 remaining weekly
payments under the first tranche of instalment payments.
On 10 January 2018 the Company commenced paying RLC $9,000 per week but only made four payments between
10 January 2018 and 8 February 2018.
On 16 February 2018 RLC placed the Company’s accounts on credit hold and stopped supply of stock and advised
the Company that the debt was being referred to their solicitor for recovery action. At this time the total debt due to
RLC was $1,526,125.49, an increase of $100,384.93 from the time the payment arrangement commenced in July
2017.
On 26 February 2018, RLC served a statutory demand on the Company for unpaid debts in the sum of $1,525,178.49.
Insolvent trading conclusion
Section Indicator of insolvency Date
3.6.1.1 Endemic shortage of working capital 30 June 2015
3.6.1.2 Availability of other cash resources 30 June 2015
3.6.1.3 Overdue Commonwealth and State taxes 3 April 2017
3.6.1.4 Creditor forbearances / communications 11 August 2017
Having regard to the above, it is our opinion that the Company was insolvent from at least 3 April 2017, being the time
when the Company breached the first of many payment arrangements it entered into with the ATO.
Section 588H of the Act provides a number of statutory defences available to the Director which would have to be
considered in deciding whether to commence an insolvent trading action. In their defence the Directors could argue
that they:
– Took steps to allow the Company to continue trading, such as entering into payment arrangements with
creditors;
– Progressed a sale of the Business to avoid further debts being incurred and preserve some value.
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 10
Any decision to commence an action against the Directors for insolvent trading must have regard to the following:
– The costs of litigation and the unknown likelihood of success;
– The quantum of creditor claims – we estimate that the debts incurred by the Company at a time when it was
insolvent to be $649,031.56;
– The fact that the liquidation is presently devoid of funds; and
– The Directors’ capacity to meet a claim for compensation. Our enquiries have confirmed that the Directors have
no real property registered in their name. The property formerly owned by the Directors appear to have been
transferred to a related party in May 2016.
Having regard to the above, we believe there is no commercial merit in pursuing an insolvent trading claim against the
Directors at this stage. If funds become available after AIF is discharged, a decision can then be made as to whether
to progress a claim against the Directors.
We note that Section 588R entitles creditors to commence proceedings under Section 588M against the Director of
the Company subject to the consent of the Liquidator.
Should creditors have any further information that may assist our investigations into the conduct of the Company’s
affairs, they should communicate details in writing to our office within 7 days from the date of this report.
4 Return to creditors At this stage, it is uncertain what dividend, if any, might be paid to unsecured creditors. We do not intend formally
fixing a day on or before which creditors must submit particulars of their debts or claims. However, we enclose a Proof
of Debt form (Annexure C) which creditors may complete and return together with documentation to support their
claim.
5 Liquidators’ remuneration and internal disbursements Creditors will recall from the initial notice to creditors that we estimated that our total remuneration for the liquidation
would be $40,000 to $50,000 (excluding GST). Pursuant to Section 75-40 of Schedule 2 to the Act, we propose to
have our remuneration approved by a proposal without holding a meeting. The main purpose of the section is to
reduce the costs of the liquidation associated with convening a meeting of creditors when it is not necessary to do so.
A summary of our proposed remuneration and internal disbursements is set out below:
Proposal
1
"That the remuneration of the Liquidators, as set out in the Remuneration Approval Request dated 6
November 2018, for the period from 6 August 2018 to 26 October 2018 be fixed in the amount of
$36,999.00, plus any applicable GST, and may be paid."
2
"That the remuneration of the Liquidators, as set out in the Remuneration Approval Request dated 6
November 2018, for the period from 27 October 2018 to completion be fixed up to a maximum amount
of $20,000.00, plus any applicable GST, but subject to upward revision by resolution of creditors, and
that the Liquidators be authorised to make periodic payments on account of such accruing
remuneration as incurred."
3
"That the internal disbursements of the Liquidators, as set out in the Remuneration Approval Request
dated 6 November 2018, for the period from 6 August 2018 to 26 October 2018 be fixed in the
amount of $45.14, plus any applicable GST, and may be paid."
4
"That the internal disbursements of the Liquidators, as set out in the Remuneration Approval Request
dated 6 November 2018, the period from 27 October 2018 to completion be fixed up to a maximum
amount of $1,000.00, plus any applicable GST, but subject to upward revision by resolution of
creditors and that the Liquidator be authorised to make periodic payments on account of such
accruing disbursements as incurred."
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 11
Further details of our remuneration and internal disbursements are contained in the attached Remuneration Approval
Request (Annexure B). Also attached are a Notices of Proposal to Creditors (Annexures A1 to A4) and a Form 535
– Proof of Debt (Annexure C) for the purposes of making particulars of your claim known to the Liquidators.
Creditors have the option of approving, not approving and/or objecting to the proposals being resolved without a meeting
of creditors.
You are invited to either:
– vote YES or NO on the enclosed Notices of Proposal to Creditors; or
– object to the proposal being resolved upon without a meeting of creditors.
If your vote or objection to the proposal being resolved upon without a meeting is to be considered, your completed Notices
of Proposal to Creditors must be received at this office by close of business, 30 November 2018.
If more than 25% in value of creditors responding to the proposal object to the proposal being resolved without a
meeting, the proposal will not pass even if the required majority vote yes. In this case, the proposal cannot be put to
creditors again without a meeting. In this instance, there will be additional costs associated with convening a meeting of
creditors or the Liquidator seeking the approval of the Court. These costs will normally be paid from the available assets
in the liquidation.
We do not propose to hold a meeting of creditors at this stage unless a creditor specifically requests me to do so
pursuant to Section 75-15 of Schedule 2 to the Act.
6 Conclusion The following matters will continue to be progressed:
– Continue enquiries regarding the commerciality of the sale of the Business;
– Review of records once access to hard drive is obtained through the Company’s software provider;
– Monitor collection of debtors by AIF;
– Collection of proceeds from sale of Business from D.K.A.K. on behalf of AIF;
– Completing our investigations into the Company’s affairs including finalising our assessment as to whether the
Company has made any payments to creditors that would constitute unfair preference payments; and
– Completing our reporting to ASIC.
We may write to you again with further information on the progress of the liquidation.
We expect to have completed this liquidation within 12 months.
Should you have any questions, please contact Corinne Kim of this office on 02 9286 9930.
Dated this 6th day of November 2018
R L Duggan
Liquidator
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 12
Glossary
Abbreviation Description
ACN Australian Company Number
Act The Corporations Act 2001
AIF Australian Invoice Finance Limited
ASIC Australian Securities and Investments Commission
ATO Australian Taxation Office
BAS Business Activity Statement
Business Exotic Cuisines
Company Chris & Sia Enterprises Pty Limited (In Liquidation)
D.K.A.K. D.K.A.K. Pty Ltd
Department Department of Jobs and Small Business
Directors Chris Phylactou and Anthasia Phylactou
ERV Estimated Realisable Value
FY Financial Year
GST Goods and Services Tax
RATA Report as to Affairs
RBA Running Balance Account
RLC Red Lea Chickens Pty Ltd (Subject to a Deed of Company Arrangement)
SGC Superannuation Guarantee Charge
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 13
Annexures
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 14
Notice of Proposal to Creditors
Date: 6 November 2018
Corporations Act 2001
Insolvency Practice Schedule 75-40
Return to no later than 30 November 2018 to: Ferrier Hodgson GPO Box 4114, SYDNEY NSW 2001
Tel: 02 9286 9999 Fax: 02 9286 9888
Email: [email protected]
Indebted Company: Chris & Sia Enterprises Pty Limited (In Liquidation) ACN 082 736 285
Date of Appointment: 6/08/2018
A. Name and Contact Details of Creditor 1 (the Creditor)
(if in a personal capacity, given name and surname; if a corporate entity, full name of company, etc) 2 of
(insert address) 3 Tel: 4 Email:
Tick this box to elect to receive electronic notification of notices or documents, in accordance with Section 600G
of the Corporations Act 2001, at the email address specified above.
5 Select one of the following options:
I am not a related creditor of the Company
I am a related party creditor of the Company, relationship: _____________________________________________
B. Details of Debt or Claim 1 Select one of the following options:
I have previously submitted a proof of debt form and supporting documents
I have enclosed a proof of debt form and supporting documents with this proposal form
A. Proposal for creditor approval
"That the remuneration of the Liquidators, as set out in the Remuneration Approval Request dated 6 November 2018,
for the period from 6 August 2018 to 26 October 2018 be fixed in the amount of $36,999.00, plus any applicable GST,
and may be paid."
B. Reasons for the proposal and the likely impact it will have on creditors if it is passed
Approval via a proposal reduces the costs of the administration. There are insufficient funds to allow the payment of a
dividend to creditors at this stage. The Liquidators’ remuneration and disbursements are paid as priority ahead of the
payment of creditors.
C. Vote on proposal
Creditor are given the option of approving, not approving or objecting to the proposed resolution being resolved without a
meeting of creditors. Please place an “X” in one (only) of the following options to indicate your vote1:
Yes – I approve the proposal No – I do not approve the proposal I object to the proposal being
resolved without a meeting
D. Signature 1 Dated:
2 Signature:
3 Name / Capacity:
A1 – Notice of proposal to creditors
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 15
Notice of Proposal to Creditors
Date: 6 November 2018
Corporations Act 2001
Insolvency Practice Schedule 75-40
Return to no later than 30 November 2018 to: Ferrier Hodgson GPO Box 4114, SYDNEY NSW 2001
Tel: 02 9286 9999 Fax: 02 9286 9888
Email: [email protected]
Indebted Company: Chris & Sia Enterprises Pty Limited (In Liquidation) ACN 082 736 285
Date of Appointment: 6/08/2018
E. Name and Contact Details of Creditor 1 (the Creditor)
(if in a personal capacity, given name and surname; if a corporate entity, full name of company, etc) 2 of
(insert address) 3 Tel: 4 Email:
Tick this box to elect to receive electronic notification of notices or documents, in accordance with Section 600G
of the Corporations Act 2001, at the email address specified above.
5 Select one of the following options:
I am not a related creditor of the Company
I am a related party creditor of the Company, relationship: _____________________________________________
F. Details of Debt or Claim 1 Select one of the following options:
I have previously submitted a proof of debt form and supporting documents
I have enclosed a proof of debt form and supporting documents with this proposal form
G. Proposal for creditor approval
"That the remuneration of the Liquidators, as set out in the Remuneration Approval Request dated 6 November 2018, for
the period from 27 October 2018 to completion be fixed up to a maximum amount of $20,000.00, plus any applicable
GST, but subject to upward revision by resolution of creditors, and that the Liquidators be authorised to make periodic
payments on account of such accruing remuneration as incurred."
H. Reasons for the proposal and the likely impact it will have on creditors if it is passed
Approval via a proposal reduces the costs of the administration. There are insufficient funds to allow the payment of a
dividend to creditors at this stage. The Liquidators’ remuneration and disbursements are paid as priority ahead of the
payment of creditors.
I. Vote on proposal
Creditor are given the option of approving, not approving or objecting to the proposed resolution being resolved without a
meeting of creditors. Please place an “X” in one (only) of the following options to indicate your vote1:
Yes – I approve the proposal No – I do not approve the proposal I object to the proposal being
resolved without a meeting
J. Signature 1 Dated:
2 Signature:
3 Name / Capacity:
A2 – Notice of proposal to creditors
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 16
Notice of Proposal to Creditors
Date: 6 November 2018
Corporations Act 2001
Insolvency Practice Schedule 75-40
Return to no later than 30 November 2018 to: Ferrier Hodgson GPO Box 4114, SYDNEY NSW 2001
Tel: 02 9286 9999 Fax: 02 9286 9888
Email: [email protected]
Indebted Company: Chris & Sia Enterprises Pty Limited (In Liquidation) ACN 082 736 285
Date of Appointment: 6/08/2018
K. Name and Contact Details of Creditor 1 (the Creditor)
(if in a personal capacity, given name and surname; if a corporate entity, full name of company, etc) 2 of
(insert address) 3 Tel: 4 Email:
Tick this box to elect to receive electronic notification of notices or documents, in accordance with Section 600G
of the Corporations Act 2001, at the email address specified above.
5 Select one of the following options:
I am not a related creditor of the Company
I am a related party creditor of the Company, relationship: _____________________________________________
L. Details of Debt or Claim 1 Select one of the following options:
I have previously submitted a proof of debt form and supporting documents
I have enclosed a proof of debt form and supporting documents with this proposal form
M. Proposal for creditor approval
"That the internal disbursements of the Liquidators, as set out in the Remuneration Approval Request dated 6
November 2018, for the period from 6 August 2018 to 26 October 2018 be fixed in the amount of $45.14, plus any
applicable GST, and may be paid."
N. Reasons for the proposal and the likely impact it will have on creditors if it is passed
Approval via a proposal reduces the costs of the administration. There are insufficient funds to allow the payment of a
dividend to creditors at this stage. The Liquidators’ remuneration and disbursements are paid as priority ahead of the
payment of creditors.
O. Vote on proposal
Creditor are given the option of approving, not approving or objecting to the proposed resolution being resolved without a
meeting of creditors. Please place an “X” in one (only) of the following options to indicate your vote1:
Yes – I approve the proposal No – I do not approve the proposal I object to the proposal being
resolved without a meeting
P. Signature 1 Dated:
2 Signature:
3 Name / Capacity:
A3 – Notice of proposal to creditors
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 17
Notice of Proposal to Creditors
Date: 6 November 2018
Corporations Act 2001
Insolvency Practice Schedule 75-40
Return to no later than 30 November 2018 to: Ferrier Hodgson GPO Box 4114, SYDNEY NSW 2001
Tel: 02 9286 9999 Fax: 02 9286 9888
Email: [email protected]
Indebted Company: Chris & Sia Enterprises Pty Limited (In Liquidation) ACN 082 736 285
Date of Appointment: 6/08/2018
Q. Name and Contact Details of Creditor 1 (the Creditor)
(if in a personal capacity, given name and surname; if a corporate entity, full name of company, etc) 2 of
(insert address) 3 Tel: 4 Email:
Tick this box to elect to receive electronic notification of notices or documents, in accordance with Section 600G
of the Corporations Act 2001, at the email address specified above.
5 Select one of the following options:
I am not a related creditor of the Company
I am a related party creditor of the Company, relationship: _____________________________________________
R. Details of Debt or Claim 1 Select one of the following options:
I have previously submitted a proof of debt form and supporting documents
I have enclosed a proof of debt form and supporting documents with this proposal form
S. Proposal for creditor approval
"That the internal disbursements of the Liquidators, as set out in the Remuneration Approval Request dated 6
November 2018, the period from 27 October 2018 to completion be fixed up to a maximum amount of $1,000.00, plus
any applicable GST, but subject to upward revision by resolution of creditors and that the Liquidator be authorised to
make periodic payments on account of such accruing disbursements as incurred."
T. Reasons for the proposal and the likely impact it will have on creditors if it is passed
Approval via a proposal reduces the costs of the administration. There are insufficient funds to allow the payment of a
dividend to creditors at this stage. The Liquidators’ remuneration and disbursements are paid as priority ahead of the
payment of creditors.
U. Vote on proposal
Creditor are given the option of approving, not approving or objecting to the proposed resolution being resolved without a
meeting of creditors. Please place an “X” in one (only) of the following options to indicate your vote1:
Yes – I approve the proposal No – I do not approve the proposal I object to the proposal being
resolved without a meeting
V. Signature 1 Dated:
2 Signature:
3 Name / Capacity:
A4 – Notice of proposal to creditors
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 18
Creditor Assistance Sheet: Completing a Proposal Form
Section A – Name and Contact Details of Person or Entity
1. Insert the full name of the employee, individual, sole trader, partnership or company that the debt is owed to. 2. Insert the address of the employee, individual, sole trader, partnership or company that the debt is owed to. 3. Insert the telephone number of the employee, individual, sole trader, partnership or company that the debt is owed to. 4. Insert the email address of the employee, individual, sole trader, partnership or company that the debt is owed to. 5. Indicate whether or not you are a related party creditor of the Company (including its directors and officers). Provide
details of your relationship to the Company (if applicable)
Section B – Details of Debt or Claim
1. Ensure that you have previously completed a Form 535 – Proof of Debt or Claim. If you have not previously done so, please complete the Form 535 which is attached to this letter and submit it to the Liquidator with this proposal form.
Section E – Voting Instructions
1. Insert an ‘X’ in one (only) of the boxes to indicate your vote – i.e. ‘Yes – I approve the proposal’, ‘No – I do not approve the proposal’ or ‘I object to the proposal being resolved without a meeting’.
Section D – Signature Instructions
1. Insert the date that the proposal form is being signed. 2. The form should be signed by one of the following persons:
• If the debt is owed to an employee/individual, then the individual that the debt is owed to; or
• If the debt is owed to a sole trader, then the sole trader that the debt is owed to; or
• If the debt is owed to a partnership, then one of the partners of the partnership; or
• If the debt is owed to a company, then a duly authorised office of the company (normally a director or secretary of the company).
3. Insert the name of the person signing the form, and note their capacity (that is, their role):
• If the debt is owed to a sole trader, note their capacity as proprietor, eg: “[Full name], proprietor”; or
• If the debt is owed to a partnership, note their capacity as partner, eg: “[Full name], partner of the firm named in Section A above”; or
• If the debt is owed to a company, note their capacity as director or secretary, eg: “[Full name], director/secretary of the company named in Section A above”]
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 19
Schedule 2 to the Corporations Act 2001, Section 60-10 Insolvency Practice Rules (Corporations) 2016, Section 70-45
Chris & Sia Enterprises Pty Limited (In Liquidation) (the Company)
ACN 082 736 285
Remuneration Approval Request
This report contains the following information:
– Part 1: Declaration
– Part 2: Executive summary
– Part 3: Remuneration
– Part 4: Disbursements
– Part 5: Report on progress of the administration
– Part 6: Summary of receipts and payments
– Part 7: Questions
– Part 8: Approval of remuneration and internal disbursements
– Schedule A: Resolution 1 details
– Schedule B: Resolution 2 details
Next steps for creditors:
– Please review the contents of this report, which sets out the proposals to be approved by creditors without a
meeting.
– Refer to Section 4 of the report to creditors dated 6 November 2018 for details as to how you can submit your
vote on the proposals contained in this report.
1 Declaration We, Robyn Duggan and Ryan Eagle of Ferrier Hodgson, have undertaken a proper assessment of this remuneration
claim for our appointment as Liquidators of the Company in accordance with the Corporations Act 2001 (Cth) (the
Act), the Australian Restructuring Insolvency & Turnaround Association (ARITA) Code of Professional Practice (the
Code) and applicable professional standards.
We are satisfied that the remuneration claimed is in respect of necessary work, properly performed, or to be properly
performed, in the conduct of the liquidation.
2 Executive summary
Summary of remuneration approval sought for the Company
To date, no remuneration has been approved and paid in the liquidation of the Company.
This report details approval sought for the following remuneration:
Period Amount (ex GST)
$
Current remuneration approval sought:
Resolution 1: 6 August 2018 to 26 October 2018 36,999.00
Resolution 2: 27 October 2018 to completion 20,000.00 Total current remuneration approval sought 56,999.00
Please refer to Part 3 for full details of the calculation and composition of the remuneration approval being sought.
B – Remuneration approval request
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 20
Summary of internal disbursements approval sought for the Company
To date, no internal disbursements have been approved and paid in the liquidation of the Company. This report
details approval sought for the following internal disbursements:
Period Amount (ex GST)
$
Current internal disbursements approval sought:
Resolution 1: 6 August 2018 to 26 October 2018 45.14
Resolution 2: 27 October 2018 to completion 1,000.00
Total current internal disbursements approval sought 1,045.14
Please refer to Part 4 for full details of the calculation and composition of the internal disbursements approval being
sought.
Comparison to estimate of costs provided to creditors in the Initial Remuneration Notice
The remuneration approval sought differs to the estimate of costs provided to creditors in the Initial Remuneration
Notice included in our letter dated 28 August 2018 for the following reasons:
– Additional time to investigate the commerciality of the sale of the Business;
– More communications than originally anticipated with the Directors and their solicitors to obtain all relevant books
and records for the Company;
– Additional communications with AIF and its solicitors in relation to its security and accounting for funds received;
and
– Delays in obtaining information generally to progress investigations.
3 Remuneration
Remuneration claim resolutions
We will be seeking approval of the following resolutions with respect to our remuneration. Details to support these
resolutions are included in Part 3.2.
Resolution 1:
"That the remuneration of the Liquidators, as set out in the Remuneration Approval Request dated 6 November 2018, for
the period from 6 August 2018 to 26 October 2018 be fixed in the amount of $36,999.00, plus any applicable GST, and
may be paid."
Resolution 2:
"That the remuneration of the Liquidators, as set out in the Remuneration Approval Request dated 6 November 2018, for
the period from 27 October 2018 to completion be fixed up to a maximum amount of $20,000.00, plus any applicable
GST, but subject to upward revision by resolution of creditors, and that the Liquidators be authorised to make periodic
payments on account of such accruing remuneration as incurred."
Details of remuneration
The basis of calculating the remuneration claims are set out below, including the details of the major tasks performed
and the costs associated with each of those major tasks.
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 21
Resolution 1: 6 August 2018 to 26 October 2018
The below table sets out time charged to each major task area performed by the Liquidators and their staff for the period 6 August 2018 to 26 October 2018, which is the basis of
the Resolution 1 claim. Please refer to Schedule A for further details with respect to the tasks performed.
Employee Position Rate Total
(ex
GST)
Assets Creditors Investigation Dividend Administration
$/Hour Hrs $ Hrs $ Hrs $ Hrs $ Hrs $ Hrs $
DUGGAN, Robyn Partner $650.00 9.10 $5,915.00 1.60 $1,040.00 1.40 $910.00 3.80 $2,470.00 0.00 $0.00 2.30 $1,495.00
EAGLE, Ryan Partner $650.00 0.20 $130.00 0.00 $0.00 0.00 $0.00 0.00 $0.00 0.00 $0.00 0.20 $130.00
CRABTREE-MORTON, James Assistant Manager $425.00 36.60 $15,555.00 0.60 $255.00 2.90 $1,232.50 31.10 $13,217.50 0.00 $0.00 2.00 $850.00
WOLTERS, Alexandra Accountant $290.00 4.20 $1,218.00 0.00 $0.00 0.00 $0.00 0.00 $0.00 0.00 $0.00 4.20 $1,218.00
KIM, Corinne Accountant $290.00 48.90 $14,181.00 1.1 $319.00 2.10 $609.00 16.40 $4,756.00 0.00 $0.00 29.30 $8,497.00
Total (excluding GST) 99.00 36,999.00 3.30 1,614.00 6.40 2,751.50 51.30 20,443.50 0.00 0.00 38.00 12,190.00
GST
3,699.90 161.40 275.15 2,044.35 0.00 1,219.00
Total (including GST) 40,698.90 1,775.40 3,026.65 22,487.85 0.00 13,409.00
Average Hourly Rate $373.73 $489.09 $429.92 $398.51 $0.00 $320.79
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 22
Resolution 2: 27 October 2018 to completion
The below table sets out the expected costs for the major tasks likely to be performed by the Liquidators and their staff
for the period 27 October 2018 to completion, which is the basis of the Resolution 2 claim. Please refer to Schedule B
for further details with respect to the tasks likely to be performed.
Task Hours Amount
$
Assets 12.00 4,800.00
Creditors 8.00 3,200.00
Investigation 15.00 6,000.00
Administration 15.00 6,000.00
Total 50.00 20,000.00
Total remuneration reconciliation
Comparison between current total and previous estimates
At this point in time we estimate that the total remuneration for this liquidation will be $56,999.00 (excluding GST).
The above estimate differs to the estimate of costs provided to creditors in the Initial Remuneration Notice included in
our report dated 28 August 2018 for the reasons set out in part 2.3.
Future remuneration requests
In preparing this report, we have made our best estimate at what we believe the liquidation will cost to complete and we
do not anticipate that we will have to ask creditors to approve any further remuneration. However, should the liquidation
not proceed as expected, we will advise creditors and we may seek approval of further remuneration and provide
details on why the remuneration has changed. Matters that may affect the progress and the cost of the liquidation,
include:
– The time to discharge the debt due to AIF;
– The time to manage collection of remaining debtors (if any); and
– Any further action identified once access is obtained to the Company’s electronic accounting records.
Likely impact on dividends
As outlined in section 4 of the report to creditors, there are presently insufficient funds to allow the payment of a
dividend to unsecured creditors. The Liquidator’s remuneration and disbursements are paid as priority ahead of the
payment of creditors. The work undertaken by the Liquidator is necessary for the ongoing conduct of the liquidation.
4 Disbursements
Types of disbursements
Disbursements are divided into three types:
– Externally provided professional services. These are recovered at cost. An example is legal fees.
– Externally provided non-professional costs such as travel, accommodation and search fees. These disbursements
are recovered at cost.
– Internal disbursements such as photocopying, printing and postage. These disbursements, if charged to the
liquidation, would generally be charged at cost; although if a data room is utilised, the fee will comprise an initial
setup fee and then a fee based on the duration and size of the data room or the number of users per month.
Certain services provided by Ferrier Hodgson may require the processing of electronically stored information into
specialist review platforms. Where these specialist resources are utilised, the fee will be based on units (e.g.
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 23
number of computers), size (e.g. per gigabyte) and/or period of time (e.g. period of hosting). The relevant rates for
internal disbursements are set out below:
Disbursement type Charges (excl GST)
Advertising At cost
ASIC industry funding model levy – metric events At prescribed ASIC rates
Couriers At cost
Data room set-up $450.00
Data room hosting – Option A Variable – see separate table below
Data room hosting – Option B (incl 100GB of data) $84.95 per user per month
eDiscovery services Variable
Photocopying / printing (colour) $0.50 per page
Photocopying / printing (mono) $0.20 per page
Photocopying / printing (outsourced) At cost
Postage At cost
Searches At cost
Staff travel reimbursement Up to $100/day
Staff vehicle use At prescribed ATO rates
Storage and storage transit At cost
Telephone calls At cost Note: Above rates are applicable for the financial year ending 30 June 2019. Disbursements charged at cost do not require creditor approval.
Data room hosting fees by size (MB) Charges per month (excl GST)
0-300 $950
300-1000 $950 + $2.50/MB
1000-5000 $2,500 + $1.25/MB
5000+ $7,500 + $0.60/MB
Disbursements paid from the liquidation to Ferrier Hodgson to date
There have been no disbursements paid from the liquidation to Ferrier Hodgson to date. Future disbursements
provided by Ferrier Hodgson will be charged to the liquidation on the same basis as the table in Part 4.1.
Disbursement claim resolutions
We will be seeking approval of the following resolutions with respect to our disbursements. Details to support these
resolutions are included in Part 4.4.
Resolution 1:
"That the internal disbursements of the Liquidators, as set out in the Remuneration Approval Request dated 6 November
2018, for the period from 6 August 2018 to 26 October 2018 be fixed in the amount of $45.14, plus any applicable GST,
and may be paid."
Resolution 2:
"That the internal disbursements of the Liquidators, as set out in the Remuneration Approval Request dated 6 November
2018, for the period from 27 October 2018 to completion be fixed up to a maximum amount of $1,000.00, plus any
applicable GST, but subject to upward revision by resolution of creditors, and that the Liquidators be authorised to make
periodic payments on account of such accruing disbursements as incurred."
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 24
Details of disbursements
Retrospective internal disbursement claim
The following internal disbursements have been claimed by our firm, Ferrier Hodgson, for the period 6 August 2018 to
26 October 2018 which is the basis of the Resolution 1 claim.
Disbursements claimed Basis Total (excl GST)
$
Photocopying / printing (colour) Colour (0.50 per page)
Mono (0.20 per page)
9.00
Photocopying / printing (mono) Colour (0.50 per page)
Mono (0.20 per page)
36.14
Total 45.14
Prospective internal disbursement claim
Future disbursements provided by our firm, Ferrier Hodgson, will be charged to the liquidation on the same basis as set
out in Part 4.1. Approval of the payment of these disbursements at those rates to a capped amount of $1,000.00 is
being sought.
5 Report on progress of the liquidation The Remuneration Approval Request must be read in conjunction with the report to creditors dated 6 November 2018
which outlines the progress of the liquidation.
6 Summary of receipts and payments A summary of receipts and payments for the period 6 August 2018 to 5 November 2018 is set out in the table below:
Receipts and payments Total (inc. GST)
$
Receipts
Cash at Bank 1,950.03
Debtors 9,786.71
Proceeds from sale of Business 15,623.13
Total receipts 27,359.87
Payments
Payment to secured creditor – debtors subject to security interest 9,786.71
Bank charges 1.80
Total payments 9,788.51
Closing cash at bank 17,571.36
7 Approval of remuneration and internal disbursements For information about how approval of the resolutions for remuneration and internal disbursements will be sought, refer
to section 5 of the report to creditors dated 6 November 2018.
8 Questions If you require further information in respect of the above, or have other questions, please contact Corinne Kim of this
office on 02 9286 9930.
The partners of Ferrier Hodgson are members of ARITA. Ferrier Hodgson follows the Code. A copy of the Code may be
found on the ARITA website at www.arita.com.au.
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 25
An information sheet concerning approval of remuneration in external administrations can also be obtained from the
Australian Securities & Investments Commission website at www.asic.gov.au.
Dated this 6th day of November 2018
R L Duggan
Liquidator
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 26
Schedule A – Resolution 1
The below table contains more detailed descriptions of the tasks performed within each task area performed by the
Liquidators and their staff for the period 6 August 2018 to 26 October 2018, which is the basis of the Resolution 1 claim
in section 3.2.1.
Task area General description Includes
Assets
3.30 hours
$1,614.00
(excl GST)
Assets subject to specific charges – All tasks associated with realising a charged
asset
Debtors – Reviewing and assessing debtors ledgers
Other assets – Tasks associated with realising other assets
Leasing
– Reviewing leasing documents
– Liaising with owners / lessors
– Tasks associated with disclaiming leases
Creditors
6.40 hours
$2,751.50
(excl GST)
Creditor enquiries, requests and
directions
– Receive and respond to creditor enquiries
– Maintaining creditor request log
– Review and prepare initial correspondence to
creditors and their representatives
– Considering reasonableness of creditor
requests
– Compiling information requested by creditors
Secured creditor reporting
– Notifying PPSR registered creditors of
appointment
– Preparing reports to secured creditor
– Responding to secured creditor’s queries
Creditor reports
– Preparing reports on results of investigation
(including statutory reports)
– General reports to creditors
Dealing with proofs of debt
– Receipting and filing proofs of debt when not
related to a dividend
– Corresponding with OSR and ATO regarding
proofs of debt when not related to a dividend
Proposals to creditors – Preparing proposal notices and voting forms
Investigation
51.30 hours
$20,443.50
(excl GST)
Conducting investigation
– Reviewing Company’s books and records
– Review and preparation of Company nature
and history
– Conducting and summarising statutory
searches
– Preparation of comparative financial statements
– Preparation of deficiency statement
– Review of specific transactions and liaising with
directors regarding certain transactions
– Preparation of investigation file
ASIC reporting – Preparing statutory investigation reports
Correspondence – General correspondence
Document maintenance / file review /
checklist
– Administration reviews
– Filing of documents
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 27
Task area General description Includes
Administration
38.00 hours
$12,190.00
(excl GST)
– File reviews
– Updating checklists
Insurance
– Identification of potential issues requiring
attention of insurance specialists
– Correspondence with insurer regarding initial
and ongoing insurance requirements
Bank account administration
– Preparing correspondence opening and closing
accounts
– Requesting bank statements
– Bank account reconciliations
– Correspondence with bank regarding specific
transfers
ASIC forms
– Preparing and lodging ASIC forms
– Correspondence with ASIC regarding statutory
forms
ATO and other statutory reporting – Notification of appointment
– Preparing BASs
Planning / review – Discussions regarding status / strategy of
administration
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 28
Schedule B – Resolution 2
The below table contains more detailed descriptions of the tasks performed within each task area likely to be performed
by the Liquidators and their staff for the period 27 October 2018 to finalisation of the liquidation, which is the basis of
the Resolution 2 claim in section 3.2.2:
Task area General description Includes
Assets
12.00 hours
$4,800.00
(excl GST)
Assets subject to specific charges – All tasks associated with realising a charged
asset
Debtors
– Correspondence with debtors
– Reviewing and assessing debtors ledgers
– Liaising with debt collectors and solicitors
Other assets – Tasks associated with realising other assets
Creditors
8.00 hours
$3,200.0
(excl GST)
Creditor enquiries, requests and
directions
– Receive and respond to creditor enquiries
– Maintaining creditor request log
– Review and prepare initial correspondence to
creditors and their representatives
– Considering reasonableness of creditor
requests
– Obtaining legal advice on requests
– Documenting reasons for complying or not
complying with requests or directions
– Compiling information requested by creditors
Secured creditor reporting – Responding to secured creditor’s queries
Creditor reports
– Preparing reports on results of further
investigations (including statutory reports) and
convening meetings if required
– General reports to creditors
Dealing with proofs of debt
– Receipting and filing proofs of debt when not
related to a dividend
– Corresponding with OSR and ATO regarding
proofs of debt when not related to a dividend
Proposals to creditors – Preparing proposal notices and voting forms
Investigation
15.00 hours
$6,000.00
(excl GST)
Conducting investigation
– Reviewing Company’s books and records
extracted from hard drive
– Review of specific transactions and liaising with
directors regarding certain transactions
– Lodgement of investigation with ASIC
– Preparation and lodgement of supplementary
report if required
Examinations (if considered
necessary)
– Preparing brief to solicitor
– Liaising with solicitor(s) regarding examinations
– Attendance at examination
– Reviewing examination transcripts
– Liaising with solicitor(s) regarding outcome of
examinations and further actions available
Litigation / recoveries (if considered
necessary)
– Internal meetings to discuss status of litigation
– Preparing brief to solicitors
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 29
Task area General description Includes
– Liaising with solicitors regarding recovery
actions
– Attending to negotiations
– Attending to settlement matters
ASIC reporting
– Preparing statutory investigation reports and
lodgement
– Liaising with ASIC
Administration
15.00 hours
$6,000.00
(excl GST)
Correspondence – General correspondence
Document maintenance / file review /
checklist
– Administration reviews
– Filing of documents
– File reviews
– Updating checklists
Bank account administration
– Preparing correspondence opening and closing
accounts
– Requesting bank statements
– Bank account reconciliations
– Correspondence with bank regarding specific
transfers
ASIC forms
– Preparing and lodging ASIC forms
– Correspondence with ASIC regarding statutory
forms
ATO and other statutory reporting – Notification of appointment
– Preparing BASs
Finalisation
– Notifying ATO of finalisation
– Cancelling ABN / GST / PAYG registration
– Completing checklists
– Finalising WIP
Planning / review – Discussions regarding status / strategy of
administration
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 30
Form 535 Formal Proof of Debt or Claim Form
Corporations Act 2001, Regulation 5.6.49(2)
Return to:
Ferrier Hodgson GPO Box 4114, SYDNEY NSW 2001
Tel: 02 9286 9999
Fax: 02 9286 9888
Email: [email protected]
Indebted Company: Chris & Sia Enterprises Pty Limited (In Liquidation) ACN 082 736 285
Date of Appointment: 6/08/2018
A. Name and Contact Details of Creditor 1 (the Creditor)
(if in a personal capacity, given name and surname; if a corporate entity, full name of company, etc) 2 of
(insert address) 3 Tel: 4 Email:
Tick this box to elect to receive electronic notification of notices or documents, in accordance with Section 600G of
the Corporations Act 2001, at the email address specified above.
B. Details of Debt or Claim
1 Amount owing:
(insert dollars and cents, inclusive of GST if applicable)
2 Nature of Debt or Claim:
(insert description of debt and/or reference any supporting documentation)
3 Select one of the following options:
The Creditor is an unsecured creditor of the indebted Company
The Creditor is a secured creditor of the indebted Company
The Creditor is an employee / former employee of the indebted Company
The Creditor is a related party (please indicate: secured / unsecured)
For all claims:
4 I have attached supporting documentation to substantiate the Creditor’s claim (secured creditors must attach evidence of
security)
5 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 details and value of security where relevant)
C. Signature
1 Dated:
2 Signature:
3 Name / Capacity:
C – Proof of debt
Chris & Sia Enterprises Pty Limited (In Liquidation) – Statutory Report by Liquidator – 6 November 2018 31
Creditor Assistance Sheet: Completing a Proof of Debt Form
Section A – Name and Contact Details of Creditor
6. Insert the full name of the employee, individual, sole trader, partnership or company that the debt is owed to.
7. Insert the address of the employee, individual, sole trader, partnership or company that the debt is owed to.
8. Insert the telephone number of the employee, individual, sole trader, partnership or company that the debt is owed to.
9. Insert the email address of the employee, individual, sole trader, partnership or company that the debt is owed to.
Section B – Details of Debt or Claim
2. The amount owing should only include debts or claims which arose prior to the date of appointment.
3. Insert the currency if not Australian dollars.
4. Type of creditor: tick one of the options only.
5. For all claims, ensure supporting documentation is attached, such as invoices, statements, agreements.
6. For secured creditors, 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, indicate “refer attached” above
and show them in a schedule in the following form:
Date Drawer Acceptor Amount ($) Due Date
Section C – Signature Instructions
1. Insert the date that the proof of debt form is being signed.
2. The form should be signed by one of the following persons:
• If the debt is owed to an employee/individual, then the individual that the debt is owed to; or
• If the debt is owed to a sole trader, then the sole trader that the debt is owed to; or
• If the debt is owed to a partnership, then one of the partners of the partnership; or
• If the debt is owed to a company, then a duly authorised office of the company (normally a director or secretary of
the company).
3. Insert the name of the person signing the form, and note their capacity (that is, their role):
• If the debt is owed to a sole trader, note their capacity as proprietor, eg: “[Full name], proprietor”; or
• If the debt is owed to a partnership, note their capacity as partner, eg: “[Full name], partner of the firm named in
Section A above”; or
• If the debt is owed to a company, note their capacity as director or secretary, eg: “[Full name], director/secretary of
the company named in Section A above”]