Information about the Company’s affairs

PERTH – Suite 2, Level 2, 1160 Hay Street, WEST PERTH WA 6005 | PO Box 92 West Perth WA 6872 Tel +61 8 6145 0700 SYDNEY - Level 35, Tower One, 100 Barangaroo Towers, SYDNEY NSW 2000 Tel +61 2 8114 4400

ABN 34 799 701 147

Liability limited by a scheme approved under Professional Standards Legislation.

21 June 2021 Circular to Creditors Dear Sir/Madam SCHLAGER BUILDING SERVICES PTY LTD (in Liquidation) ACN 601 882 188 (the Company) Formerly trading as Schlager Homes Please be advised that I was appointed Liquidator of the Company on 8 June 2021. I enclose my notice of appointment as lodged with the Australian Securities and Investments Commission (ASIC) for your information. You have been sent this circular because you are listed as a creditor of the Company. As Liquidator, I now control the Company’s operations and I am in the process of assessing the Company’s financial position. The Company’s Director has been requested to prepare a statement about the Company’s business, property, affairs and financial circumstances as at the date of my appointment. I raise the following matters regarding the liquidation.

1 Information about the Company’s affairs

I am required by section 497(1) of the Corporations Act 2001 (the Act) to send each creditor the following information:

• a summary of the affairs of the entity in the prescribed form; and • a list setting out the names of all creditors, the addresses of those creditors and the

estimated amounts of their claims, as shown in the records of the entity. In this regard, I enclose the following documents: Document Description

Summary of affairs (form 509)

• This form has been prepared by the Director of the Company and discloses the estimated assets and liabilities of the Company.

Creditors listing • This schedule comprises the creditors’ claims according to the

books and records of the Company. We have yet to verify these amounts.

Creditors Rights in Liquidations

• A publication by ARITA containing information on creditors rights in a liquidation

Short guide to the Personal Property Securities Act • Information to assist creditors.

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2 Declaration of Independence, Relevant Relationships and Indemnities

Pursuant to section 506A(2) of the Act and the Australian Restructuring, Insolvency and Turnaround Association (ARITA) Code of Professional Practice, I enclose my ‘Declaration of Independence, Relevant Relationships and Indemnities’ for the Company.

3 Conduct of the Liquidation to date

The Company operated a residential construction business in the Perth metropolitan and Albany regional areas in Western Australia. I understand that the business ceased trading immediately prior to my appointment in June 2021. Activities performed to date during the liquidation process include:

• meetings and correspondence with the Director regarding books and records and the Company’s potential assets;

• informing key agencies, service providers and utilities of the Company’s liquidation; • lodgements with ASIC regarding the liquidation; • dealings with the Director regarding the prescribed forms he is to provide to me; • assembling and bringing in Company’s books and records; • reviewing books and records received to date; • reviewing and assessing all contracts on foot as at the date of my appointment and

preparing correspondence to the Company’s clients; • drafting reports and documents for creditors; and • attending to creditors’ queries.

4 Trading

4.1 Trading accounts

As indicated above, the Company is no longer trading. Please note that I do not accept liability for the supply of any goods and services from the date of appointment. If there are any outstanding or unfulfilled orders placed by the Company prior to my appointment, including those under which there are goods in transit, please contact Terrence Chong of this office on 08 6145 0700 or [email protected] to obtain written confirmation that the order should proceed. You may be aware that creditors are entitled to claim for dividend in the liquidation for debts owed by the Company as at 8 June 2021. I will write to you again once I have completed my investigations into the Company’s affairs and determined whether or not there are sufficient funds to pay a dividend to creditors.

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4.2 Consignment stock, goods subject to purchase money security interests and liens / pledges

If you supplied consignment stock to the Company, or believe you provided stock subject to a purchase money security interest (formerly a retention of title clause), or claim a lien / pledge over any of the Company’s assets, please contact Terrence Chong of this office as a matter of urgency. Please see the attached short guide to the Personal Property Securities Act for your information.

4.3 Contracts / agreements

As Liquidator, I expressly refrain from personally adopting any of the Company’s contracts existing at the date of his appointment. All contracts are currently under review and I will advise the parties directly about the status of their contracts as soon as practicable.

5 Legal proceedings

The appointment of a liquidator stays proceedings in a court against the Company. You cannot commence or continue a proceeding against the Company without leave of the Court. Please contact my office if you are party to any proceedings against the Company.

6 Employees

All of the Company’s employees were terminated on appointment.

7 Investigations

An investigation of the Company’s affairs will be conducted. Creditors who have any information which would assist my investigation are requested to write to me setting out full particulars. Specifically, please provide details on the following issues:

• any demands, writs, judgements or other legal action taken by you against the Company;

• copies of correspondence sent to and received from the Company regarding unpaid accounts; and

• advise when trading first commenced with the Company.

8 Remuneration proposal

My remuneration is paid from the realisation of the Company’s assets or from money paid to me by others, such as the Company’s Director. Please note that I have not received an indemnity of any kind or an up front payment from the Director in this liquidation. If there are insufficient funds available in the liquidation, I may not get paid in full. I wish to have my remuneration approved by the Company’s creditors. To avoid the costs of convening a creditors’ meeting I am requesting approval by way of a proposal. In this regard, I enclose the following documents:

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Document Description

Remuneration Approval Report

• To cover the Liquidator’s costs in relation to completing thewinding up of the Company, for the period 8 June 2021 tofinalisation of the liquidation, in the estimated amount of $105,866plus GST.

Notice of Proposal 1 to Creditors

• This form contains the details of the proposal to creditors relatingto the Liquidator’s remuneration for the period 8 June 2021 to 21June 2021, in the sum of $56,151 plus GST.


• This form contains the details of the proposal to creditors relatingto the Liquidator’s remuneration for the period 22 June 2021 tofinalisation, in the sum of $49,715 plus GST.


• This form contains the details of the proposal to creditors relatingto the Company’s books and records.

Proof of Debt Form • This form is used to document a creditor’s claim and must beprovided in order to vote on the proposal.

Information sheet: Proposals without meetings

• A publication by the ARITA containing information on approvingremuneration without a meeting.

I request that you return the Notice of Proposal to Creditors forms to my office by 13 July 2021.

An information sheet concerning approval of remuneration in external administrations can be obtained from ASIC at www.asic.gov.au.

Should you have any queries in respect of this matter please do not hesitate to contact Terrence Chong of this office on 08 6145 0700 or [email protected].

Yours faithfully For the Company

Dermott McVeigh Liquidator

Encl.

ASIC Form 505 Ref 154422831 Page 1 of 2

Australian Securities &Investments Commission

Electronic Lodgement

Document No. 7EBI19803

Lodgement date/time: 08-06-2021 16:00:33

Reference Id: 154422831

Form 505Corporations Act 2001

415(1), 427(2), 427(4), 450A(1)(a),499(2C)(a) & (b), 537(1) & (2),

Insolvency Practice Rules (Corporations) 2016s70-60(2)

Corporations Regulations 20015.3B.50, 5.3B.54, 5.5.06

External Administration or ControllershipAppointment of an administrator or controller

Liquidator details

Registered liquidator number

342611

Registered liquidator name

DERMOTT JOSEPH MCVEIGH

Company details

Company name

SCHLAGER BUILDING SERVICES PTYLTD

ACN

601 882 188

Industry division

CONSTRUCTION

Industry group

Residential Building Construction

ANZSIC Code

301

Add a new appointment

Appointee detailsLiquidator No. 342611

Person Name

DERMOTT JOSEPH MCVEIGH

Address

Form 505 - Appointment of an administrator or controllerLiquidator: 342611 - DERMOTT JOSEPH MCVEIGH

ASIC Form 505 Ref 154422831 Page 2 of 2

AVIOR CONSULTING, 'AVIORCONSULTING AVIOR CONSULTING'SUITE 2 LEVEL 2 1156-1160 HAY STREETWEST PERTH WA 6005 Australia

Type of Appointment Appointed Singly

Appointment Details

Provide the date of appointment.08-06-2021

Type of administratorLiquidator of creditors' voluntary liquidation

Method of appointmentother appointment

Authentication

This form has been authenticated byName DERMOTT JOSEPH MCVEIGHThis form has been submitted byName Dermott Joseph MCVEIGHDate 08-06-2021

PaymentYou need to pay the fee (and any late fees ifrequired) by Bpay or cheque in accordancewith the instructions on your invoice

For more help or informationWeb www.asic.gov.auAsk a question? www.asic.gov.au/questionTelephone 1300 300 630

ASIC Form 509 17 January 2011 Page 1 of 2

Australian Securities & Investments Commission

Lodgement details Who should ASIC contact if there is a query about this form?Name

ASIC registered agent number (if applicable)

Company/entity name

ACN/ABN/ARBN/ARSN

Telephone number

Postal address

Email address (optional)

Company detailsCompany name

ACN

Summary of assets and liabilitiesDate to which summary is made upDate

/ / [D D] [M M] [Y Y]

If there is insufficient space in any section of the form, you may attach an annexure and submit as part of this lodgement

Presentation of summary of affairs of a company


497(2)(b)(i)

Eve Switka

324611

Avior Consulting

(08) 6145 0700

PO Box 92, West Perth, WA 6872

[email protected]

SCHLAGER BUILDING SERVICES PTY LTD

601 882 188

0 8 0 6 2 1

ASIC Form 509 17 January 2011 Page 2 of 2

Continued... Summary of assets and liabilities

Valuation (Show whether cost or net book amount)

Estimated realisable values

1 Assets not specifically charged(a) interest in land(b) sundry debtors(c) cash on hand(d) cash at bank(e) stock as detailed in inventory(f) work in progress as detailed in inventory(g) plant and machinery as detailed in inventory(h) other assets

2 Assets subject to specific charges less amounts owing

TOTAL assets

TOTAL estimated realisable values

3 Less preferential creditors entitled to priority over the holders of debentures under any floating charge

4 Less amounts owing and secured by debenture or floating charge over company’s assets to:

5 Less preferential creditors estimated amount available for unsecured creditors

6 Creditors (unsecured) amount claimed

7 Balances owing to partly secured creditors total claims security held

8 Contingent assets estimated to produce

9 Contingent liabilities estimated to rank for estimated deficiency/surplus (subject to costs of administration/liquidation)

Share capital issuedpaid up

SignatureName of person signing

Capacity

Signature

Date signed

/ / [D D] [M M] [Y Y]

Lodgement Send completed and signed forms to: Australian Securities and Investments Commission, PO Box 4000, Gippsland Mail Centre VIC 3841.

For more informationWeb www.asic.gov.auNeed help? www.asic.gov.au/questionTelephone 1300 300 630

ASHER DANIEL ARTHUR SCHLAGER

Director

1 5 0 6 2 1

$25,000gb

$485,000

$550,000

$575,000

$70,000

$34,246.43

ASIC Form 509 Guide 1 July 2014 Page 1 of 1

Guide:Presentation of summary of affairs of a companyThis guide does not form part of the form. It is included by ASIC to assist you in completing and lodging the Form 509.

Signature This form must be signed by a director or secretary.

Lodgement period 7 days prior to the holding of the meeting of creditors.

Lodgement fee A lodgement fee applies to this form.

For information on fees refer to www.asic.gov.au/forms.

Other forms to be completed This form should be lodged with Form 529 - Regulation 5.6.12(6)

Additional information The date given as ‘date to which summary is made up’ must not be earlier than the date of the declaration by a majority of the directors under subsection 494(1)If this summary of affairs is sent out to creditors in accordance with subparagraph 497(2)(b)(i), it must be made up to the latest practicable date before the notices are sent.

How to provide additional information

AnnexuresIf there is insufficient space in any section of the form, you may submit annexures as part of this lodgement.

To make any annexure conform to the regulations, you must1. use A4 size paper of white or light pastel colour with a margin of at least 10mm on all sides2. show the company name and ACN3. number the pages consecutively4. print or type in BLOCK letters in dark blue or black ink so that the document is clearly legible when photocopied5. mark the annexure with an identifying letter or symbol eg a,b,c or 1,2,3 etc.6. endorse the annexure with the words:

This annexure (mark) of (number) pages referred to in form (form number and title)7. sign and date the annexure

The annexure must be signed by the same person(s) who signed the form.

Privacy The information provided to ASIC in this form may include personal information. Please refer to our privacy policy (www.asic.gov.au/privacy) for information about how we handle your personal information, your rights to seek access to and correct personal information, and to complain about breaches of your privacy.

LodgementSend completed and signed forms to: Australian Securities and Investments Commission, PO Box 4000, Gippsland Mail Centre VIC 3841.

For more informationWeb www.asic.gov.auNeed help? www.asic.gov.au/questionTelephone 1300 300 630

Australian Securities & Investments Commission


497(2)(b)(i)

Creditors listingSchlager Building Services Pty Ltd (in Liquidation)As at 8 June 2021

Creditor Amount ($) Address Related Party360 Logistics 11,881.65 Unit 4a 5 Mumford Pl BALCATTA WA 6021 NoABSI - 321 Selby Street OSBORNE PARK WA 6017 YesAdvanced Traffic Management (WA) Pty Ltd 400.40 PO Box 1944 Midland WA 6936 NoAlana Magee & Stephen Pollard - 4 Tanah Close KINGSLEY WA 6026 NoAlbany Allsoils Landscape Supplies 25.00 1 Lower Denmark Rd ROBINSON WA 6330 NoAlbany Central Cabinets 666.60 15 Barker Road Albany WA 6330 NoAlbany Scaffold Hire 10,818.50 PO Box 1101 Albany WA 6331 NoAlbany Skips and Waste Services Pty Ltd 3,490.00 Albany WA 6331 NoAline Cohen & Jane Billham - 12 Golden Gr COODANUP WA 6210 NoAndrew & Erin McClean - NoAndrew Whyte Refrigeration & Airconditioning 5,651.80 18 Charles St MILPARA WA 6330 NoAnh Tuan Duong and Thi Kim Bich Nguyen - 296 Alexander Dr DIANELLA WA 6059 NoAntonia Oudman - 216 Grey Street West ALBANY WA 6330 NoAustralian Taxation Office 388,124.56 via ATO Portal NoBDO Accounting 39,827.09 PO Box 700 West Perth WA 6872 NoBertola Hire Albany Pty Ltd 4,877.00 PO Box 236 Alabany WA 6331 NoBest Bar Pty Ltd 9,330.06 367 Mandurah Rd EAST ROCKINGHAM WA 6168 NoBest Electrical and Gas 22,488.72 6 Graham St CENTENNIAL PARK WA 6330 NoBluescope Distribution Pty Ltd - 1/6 Wellard Street BIBRA LAKE WA 6163 NoBrent Glynndon Van Ingen-Kal & Maria Louise Cashmore - 11 Bird Street MOSMAN PARK WA 6012 NoBunnings 14,241.52 348-354 Albany Highway Albany WA 6330 NoCaldwell Land Surveys Pty Ltd 1,012.00 PO Box 5358 Albany WA 6332 NoCamtrans Albany Pty Ltd 16,380.10 23 Graham Street Albany WA 6330 NoCarmela Le Map - 73 Raymond St YOKINE WA 6060 NoCleanaway - NoCommonwealth Bank Of Australia 95,356.61 NoCottage & Engineering Surveys 3,553.00 87-89 Guthrie St OSBORNE PARK WA 6017 NoDavid Kilkenny - 37 Greenshields St MIRA MAR WA 6330 NoDecoria WA Painting 8,800.00 NoDelia McLeod - 44 Hanover Place MOUNT CLARENCE WA 6330 NoDirect Bath Repairs - NoElite Compliance Pty Ltd - NoEngenuity Engineering 385.00 Level 4 1101 Hay St WEST PERTH WA 6005 NoEzquerra/Engstrom, Juan & Annika - 18 Kathleen St BASSENDEAN WA 6054 NoF Daniele, F Daniele & Terse Pty Ltd - 68 Hare Street MIDDLETON BEACH WA 6330 NoFair Entitlement Guarantee - NoFranks Loader Services 4,053.22 60 Hanson St MIRA MAR WA 6330 NoGemma Laskey & Sean Smith - 42 Persimmon Pl KALAMUNDA WA 6076 NoGina Soumelidis - Unit 1 372 Belgravia St CLOVERDALE WA 6105 NoGoad Resources Pty Ltd 599.50 29-31 Mccook St FORRESTDALE WA 6112 NoGreat Southern Geotechnics Pty Ltd 121.00 5A/209 Chester Pass Road Albany WA 6000 No


Creditor Amount ($) Address Related PartyGreat Southern Interiors 16,099.05 313 Hortin Rd KRONKUP WA 6330 NoGreat Southern Pest & Weed Control 1,975.64 3/34 Albert Street Centennial Park WA 6330 NoGSN Contracting Pty Ltd 8,545.90 10 Regent Dr ALEXANDER HEIGHTS WA 6064 NoHeath Developments - 132-136 Railway Street COTTESLOE WA 6011 NoHolcim (Australia) Pty Ltd 3,809.52 Locked Bag 5007 Baulkham Hills BC NSW 1755 NoHulk Steel Services Pty Ltd 1,100.00 63 Castella Dr CAVERSHAM WA 6055 NoHunter Automotive Group Pty Ltd - 398 Albany Hwy Albany WA 6330 NoIdeal Electrics 2,282.50 PO BOX 3152 YOKINE WA 6060 NoIndustrial Progress Corporation Pty Ltd - NoInfrabuild Trading Pty Ltd And Ors - NoIsobel Lyall - 68 Roberts St BAYSWATER WA 6053 NoJ Marwick Carpentry 4,741.00 22 Henley Gr MIRA MAR WA 6330 NoJackenzie Holdings Pty Ltd - NoJames Langridge and Bella Walters - Lot 62, 3 Breaksea Crescent Collingwood Heights WA 6330 NoJDS Metal Doorframes 1,917.85 21 Alloa Rd MADDINGTON WA 6109 NoJJ's Great Southern 247.50 3 Whidby St ORANA WA 6330 NoJohn Rich & Kate O'Brien - PO Box 5824 Albany WA 6332 NoKG Hastie 19,923.55 29 Rycraft Dr ALBANY WA 6330 NoKings Plumbing 26,851.00 10 Prior St CENTENNIAL PARK WA 6330 NoLaminex Group Pty Limited - NoLoch Carpentry Solutions 17,721.00 7 Dowel Ct OCEAN REEF WA 6027 NoMCB Construction 7,025.00 24 Stirling St ROBINSON WA 6330 NoMetro Ceramic Tiles 2,801.01 226-228 Albany Highway Albany WA 6330 NoMetro Scaffold Hire Pty Ltd 9,831.48 PO Box 2498 Malaga WA 6944 NoMoore Joinery & Cabinet Makers 1,492.19 PO Box 1089 Albany WA 6330 NoMortlock Timber 2,255.41 PO Box 137 Cunderdin WA 6407 NoNarelle & Hudson Williams - 14 Hume Cnr YAKAMIA WA 6330 NoNeville's Hardware & Building Supplies 877.75 P.O. Box 1058 Albany WA 6331 NoNicholai Knuppe - Unit 17 46 Vancouver St ALBANY WA 6330 NoOctagon BKG Lifts 10,202.10 PO Box 2065 Palmyra DC WA 6961 NoOfficeworks 237.42 160 Albany Highway Albany WA 6330 NoO'keefe's Paints Albany 126.30 58 Serpentine Rd ALBANY WA 6330 NoPaul and Shane Lewis - PO Box 1163 Denmark WA 6333 NoPeter & Janet Dunbar - Unit 2 12 Cannaregio Sq MANDURAH WA 6210 NoPinelock Systems Pty Ltd 7,306.20 Unit 7 Albany WA 6330 NoProvost Electrical 5,442.53 NoRebecca Newman - 22 Louise St NEDLANDS WA 6009 NoReece Australia Pty Ltd 2,277.75 135 Chester Pass Rd MILPARA WA 6330 NoRevroof Pty Ltd t/a Revolution Roofing 14,726.61 55b Hector Street OSBORNE PARK WA 6017 NoRoger & Claire Jeffery - 21 Bendigo Way CITY BEACH WA 6015 NoRoss Hunter Painting 8,000.00 No


Creditor Amount ($) Address Related PartyRP & GJ Sankey 6,833.20 121 Lancaster Rd MCKAIL WA 6330 NoSam Purgavie - NoSchlager Architects WA Pty Ltd 24,768.34 29 Peels Pl ALBANY WA 6330 YesSchlager Group Australia Pty Ltd (in Liquidation) 885,341.29 PO Box 92 WEST PERTH WA 6005 YesSchlager Group Pty Ltd 110,088.61 321 Selby Street OSBORNE PARK WA 6017 YesShane Hanley 4,296.00 NoSmartstruct Solutions Pty Ltd - NoSparke Helmore Lawyers 2,813.80 Level 11, Eastpoint Plaza, 233 Adelaide Terrace Perth WA 6000 NoSt Clare Family & Occupational Practice 728.20 202 Middleton Rd MIRA MAR WA 6330 NoStructerre Consulting Engineers 1,502.60 P.O. Box 792 Balcatta WA 6914 NoStuart Hope & Aileen Ross - NoT & G Earthmoving Contractors 2,062.50 PO Box 2165 Kardinya WA 6163 NoT Keen Carpentry 4,741.00 PO BOX 526 ALBANY DC WA 6331 NoTermico Pest Management - NoThe Oliver Family Trust - NoTony and May Quinn - 4 Boronia Street Albany WA 6330 NoToyota Finance Australia Ltd - PO Box 9215 SCORESBY VIC 3179 NoTracy Barker & Martin Hale - 166 Whatley Cres MAYLANDS WA 6051 NoTrendshield T/A Fire Defender 649.93 P O Box 218 Clontarf QLD 4019 NoUnited Tools Albany 170.70 36 Sanford Rd CENTENNIAL PARK WA 6330 NoVancouver Waste Services 404.08 16 Anthony Rd Albany WA 6330 NoVibrant Window Cleaning 110.00 18 Catling Cl WARRENUP WA 6330 NoVicki Wilson - 8 Brentham St LEEDERVILLE WA 6007 NoVolkswagen Financial Services Australia Pty Limited - Locked Bag 4002 CHULLORA NSW 2190 NoWA Concrete Construction - NoWA Fire & Safety 660.00 3 Willerin Mews MAIDA VALE WA 6057 NoWade Marshall Plumbing 22,545.60 PO Box 212 Albany WA 6331 NoWater Corporation 416.05 NoWellington and Reeves 4,709.20 P O Box 5242 Albany WA 6330 NoWestern Technical Services 7,568.96 Unit 1 7 Quantum Link WANGARA WA 6065 NoWestpac Banking Corporation - PO BOX 7664 CLOISTER SQUARE WA 6850 NoZedwhyex Pty Ltd ATF Rinnic Family Trust - 68 Hare Street MIDDLETON BEACH WA 6330 NoTotal 1,900,309.65

Specific queries about the liquidation should be directed to the liquidator’s office.

AUSTRALIAN RESTRUCTURING INSOLVENCY & TURNAROUND ASSOCIATION

Creditor Rights in Liquidations

Requests must be reasonable.

They are not reasonable if:

Both meetings and information:

(a) complying with the request would prejudice the interests of one or more creditors or a third party

(b) there is not sufficient available property to comply with the request

(c) the request is vexatious

Meeting requests only:

(d) a meeting of creditors dealing with the same matters has been held, or will be held within 15 business days

Information requests only:

(e) the information requested would be privileged from production in legal proceedings

(f) disclosure would found an action for breach of confidence

(g) the information has already been provided

(h) the information is required to be provided under law within 20 business days of the request

If a request is not reasonable due to (b), (d), (g) or (h) above, the liquidator must comply with the request if the creditor meets the cost of complying with the request.

Otherwise, a liquidator must inform a creditor if their meeting or information request is not reasonable and the reason why.

As a creditor, you have rights to request meetings and information or take certain actions:

Right to request a meeting

Right to request

information

Right to give directions to

liquidator

Right to appoint a reviewing liquidator

Right to replace

liquidator

Right to request a meeting

Right to request information

In liquidations, no meetings of creditors are held automatically. However, creditors with claims of a certain value can request in writing that the liquidator hold a meeting of creditors.

A meeting may be requested in the first 20 business days in a creditors’ voluntary liquidation by ≥ 5% of the value of the debts held by known creditors who are not a related entity of the company. Otherwise, meetings can be requested at any other time or in a court liquidation by: ▪ > 10% but < 25% of the known value of creditors on the condition

that those creditors provide security for the cost of holding the meeting

▪ ≥ 25% of the known value of creditors ▪ creditors by resolution, or ▪ a Committee of Inspection (this is a smaller group of creditors

elected by, and to represent, all the creditors).

If a request complies with these requirements and is ‘reasonable’, the liquidator must hold a meeting of creditors as soon as reasonably practicable.

Liquidators will communicate important information with creditors as required in a liquidation. In addition to the initial notice, you should receive, at a minimum, a report within the first three months on the likelihood of a dividend being paid.

Additionally, creditors have the right to request information at any time. A liquidator must provide a creditor with the requested information if their request is ‘reasonable’, the information is relevant to the liquidation, and the provision of the information would not cause the liquidator to breach their duties.

A liquidator must provide this information to a creditor within 5 business days of receiving the request, unless a longer period is agreed. If, due to the nature of the information requested, the liquidator requires more time to comply with the request, they can extend the period by notifying the creditor in writing.

AUSTRALIAN RESTRUCTURING INSOLVENCY & TURNAROUND ASSOCIATION PAGE 2

12112 (LIQ) - INFO - CREDITOR RIGHTS INFORMATION SHEET V2_0.DOCX Version: July 2017

Creditors, by resolution, may give a liquidator directions in relation to a liquidation. A liquidator must have regard to these directions, but is not required to comply with the directions.

If a liquidator chooses not to comply with a direction given by a resolution of the creditors, they must document their reasons.

An individual creditor cannot provide a direction to a liquidator.

Creditors, by resolution, may appoint a reviewing liquidator to review a liquidator’s remuneration or a cost or expense incurred in a liquidation. The review is limited to:

▪ remuneration approved within the six months prior to the appointment of the reviewing liquidator, and ▪ expenses incurred in the 12 months prior to the appointment of the reviewing liquidator.

The cost of the reviewing liquidator is paid from the assets of the liquidation, in priority to creditor claims.

An individual creditor can appoint a reviewing liquidator with the liquidator’s consent, however the cost of this reviewing liquidator must be met personally by the creditor making the appointment.

Creditors, by resolution, have the right to remove a liquidator and appoint another registered liquidator.

For this to happen, there are certain requirements that must be complied with:

Meeting request Information and notice Resolution at meeting

Right to appoint a reviewing liquidator

Right to replace liquidator

Right to give directions to liquidator

A meeting must be reasonably requested by the required number of creditors.

Creditors must inform the existing liquidator of the purpose of the request for the meeting.

Creditors must determine who they wish to act as the new liquidator (this person must be a registered liquidator) and obtain:

▪ Consent to Act, and ▪ Declaration of

Independence, Relevant Relationships and Indemnities (DIRRI).

The existing liquidator will send a notice of the meeting to all creditors with this information.

If creditors pass a resolution to remove a liquidator, that person ceases to be liquidator once creditors pass a resolution to appoint another registered liquidator.

For more information, go to www.arita.com.au/creditors.

Specific queries about the liquidation should be directed to the liquidator’s office.

http://www.arita.com.au/creditors

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ABN 34 799 701 147


Corporations Act 2001 Sections 506A SCHLAGER BUILDING SERVICES PTY LTD (in Liquidation) ACN 601 882 188 (the Company) Formerly trading as Schlager Homes Declaration of Independence, Relevant Relationships and Indemnities The purpose of this document is to assist creditors with understanding any relevant relationships that I, the Liquidator, have with parties who are closely connected to the Company and any indemnities or upfront payments that have been provided to me. None of the relationships disclosed in this document are such that my independence is affected. This information is provided so you have trust and confidence in my independence and, if not, you can ask for further explanation or information and can act to remove and replace me if you wish. This declaration is made in respect of myself, my partners, Avior Consulting and its staff. I am a Professional Member of the Australian Restructuring Insolvency & Turnaround Association (ARITA). I acknowledge that I am bound by the ARITA Code of Professional Practice.

A Independence

I have assessed my independence and I am not aware of any reasons that would prevent me from accepting this appointment. There are no other known relevant relationships, including personal, business and professional relationships that should be disclosed beyond those I have disclosed in this document.

B Circumstances of appointment

(i) How I was referred this appointment

This appointment was not referred to me. My staff and I became aware of the Company’s financial difficulty through my roles as Liquidator of the Company’s parent, Schlager Group Australia Pty Ltd (In Liquidation) (SGA) and as Trustee of the Schlager Group Creditors’ Trust following the restructure of Schlager Group Pty Ltd (SGPL).

(ii) Did I meet with the Company, the directors or their advisers before I was appointed?

☒ Yes ☐ No My partner, Kelly Meyn, contacted the Company’s director, Mr Asher Schlager, on 3 June 2021 to discuss the Company’s situation. On 4 June 2021, Kelly and I met with Mr Schlager.

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These interactions were for the purposes of discussing:

• the Company’ financial position; and• the potential options available to the Company.

On 8 June 2021, I was appointed Liquidator of the Company. This was done by way of a resolution by Mr Schlager as sole director to hold a directors’ meeting, the purpose of which was to convene a members’ meeting. SGA is the sole member. As Liquidator of SGA I held the meeting of the Company’s members and signed the resolution that the Company be placed in liquidation and that I be appointed as liquidator.

The process leading to my appointment as the Company’s Liquidator was done at the insistence of Mr Schlager. As the Company’s sole member, I resolved that the Company be wound up because it was evident to me that it was insolvent.

I received no remuneration for this advice.

In my opinion, these discussions and meeting do not affect my independence for the following reasons:

• My advice was limited to assessing the Company’ financial position, the consequencesof insolvency and restructuring options;

• Advice was given in relation to the Company only. I did not advise the director personallyor others;

• The Courts and the Code specifically recognise the need for practitioners to provideadvice on the insolvency process and the options available and do not consider thatsuch advice results in a conflict or an impediment to accepting the appointment;

• The nature of the advice is such that it would not be subject to review and challengeduring the Liquidation; and

• The pre-appointment advice will not influence my ability to fully comply with the statutoryand fiduciary obligations associated with the Liquidation in an objective and impartialmanner.

I have provided no other information or advice to the Company, its director and advisors prior to my appointment beyond that outlined in this DIRRI.

C Declaration of Relationships

Within the previous two years, I, or my firm, have had a relationship with:

The Company? ☐ Yes ☒ NoThe directors? ☒ Yes ☐ NoAny associates of the Company? ☒ Yes ☐ NoA former insolvency practitioner appointed to the Company? ☐ Yes ☒ NoA secured creditor entitled to enforce a security over the whole or substantially the whole of the Company’ property?

☐ Yes ☒ No

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Do I have any other relationships that I consider are relevant to creditors assessing my independence?

☐ Yes ☒ No

Relationship with the Company’s director

In my role as Voluntary Administrator of SGA and SGPL, I met with Mr Schlager on 20 April 2021 because of the debts owed by the Company to those entities. The debts owed appeared to be approximately $885,000 and I wished to understand how the Company intended to repay them.

Shortly after that meeting, Mr Schlager sent me a proposal to settle the debts owed to SGA and SGPL, and also to acquire the shares of the Company held by SGA. I rejected Mr Schlager’s proposal and he submitted another offer that was commercially more attractive. The second offer involved payments totalling $160,000. I was prepared to accept this offer because I had previously formed the view that the Company was insolvent and did not have the financial capacity to repay the loans owing to SGA and SGPL. I reviewed the offer and the Company’s financial circumstances with the Committees of Inspection of SGA and SGPL, and both committees supported acceptance of Mr Schlager’s proposal.

A share sale agreement was entered into with Mr Schlager on 21 May 2021. The Company was not a party to it. Mr Schlager has informed me he did not intend to complete the agreement. Accordingly, SGA remains the owner of all of the shares of the Company and the debts owed by the Company to SGA and SGPL remain unchanged.

I do not consider the above relationship to be a threat to my independence as Liquidator of the Company.

Relationships with the Company’s associates

As explained above, I was appointed Voluntary Administrator of SGA and SGPL on 14 April 2021. I am now the Liquidator of SGA and Trustee of the Schlager Group Creditor’s Trust. Loan accounts exist between the three entities such that, in the event a dividend is payable in relation to those claims, I may be required to adjudicate a claim of an entity I am the Liquidator or Trustee of. Where that event arises and there is uncertainty about the value of the claim(s), a conflict of interest will likely exist. I may resolve the conflict by engaging an external insolvency practitioner to adjudicate the claim(s) and/or apply to Court for directions.

I note there is no indication currently that any dividend will be payable in relation to the loan accounts. Accordingly, I do not consider that a conflict of interest currently exists.

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D Indemnities and up-front payments

I have not received any up-front payments or indemnities for this appointment. This does not include any indemnities I may be entitled to under the law. Dated 21 June 2021:

..................................................... Dermott McVeigh Voluntary Administrator Notes: 1. The assessment of independence has been made based on an evaluation of the significance of any threats

to independence and in accordance with the requirements of the relevant legislation and professional Standards.

2. If circumstances change, or new information is identified, I am required under the Corporations Act 2001 and ARITA’s Code of Professional Practice to update this Declaration and provide a copy to creditors with my next communication as well as table a copy of any replacement declaration at the next meeting of the insolvent’s creditors. For creditors’ voluntary liquidations and voluntary administrations, this document and any updated versions of this document are required to be lodged with ASIC.


ABN 34 799 701 147


SCHLAGER BUILDING SERVICES PTY LTD (in Liquidation) ACN 601 882 188 (the Company) Formerly trading as Schlager Homes Remuneration Approval Report Schedule 2 to the Corporations Act 2001, Section 70-50 Insolvency Practice Rules (Corporations) 2016, Section 70-45

1 Executive summary

To date, the total remuneration that has been approved in the liquidation is nil. This Remuneration Approval Report details approval sought for the following fees:

Period Amount

(ex GST) $

Resolution 1: 8 June 2021 to 21 June 2021

56,151

Resolution 2: 22 June 2021 to the finalisation of the liquidation*

45,205

Total 101,356

2 Declaration

I, Dermott McVeigh of Avior Consulting, have undertaken a proper assessment of this remuneration claim for my appointment as Liquidator 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. I am satisfied that the remuneration claimed is in respect of necessary work, properly performed, or to be properly performed, in the conduct of the liquidation.

3 Statement on remuneration

3.1 Remuneration methods

There are four basic methods that can be used to calculate the remuneration charged by an insolvency practitioner as follows:

3.1.1 Time Based (hourly rates) This is the most common method. The total fee charged is calculated by reference to the hourly or time unit rate charged for each person who carries out the work multiplied by the number of hours spent by each person on necessary work properly performed.

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3.1.2 Fixed fee The total fee charged is normally quoted at the commencement of the liquidation and is the total cost for the liquidation. Sometimes, a practitioner will finalise the liquidation for a fixed fee.

3.1.3 Percentage The total fee charged is based on a percentage of a particular variable, such as the gross proceeds of asset realisations.

3.1.4 Contingency The insolvency practitioner’s fee is contingent on achieving a particular outcome.

3.2 Remuneration method chosen

Given the nature of this liquidation, I propose that the remuneration of the Liquidator be calculated using the time-based method. Time based remuneration is appropriate in this liquidation given that:

• it ensures actual time is billed at an hourly rate applicable to staff experience; • it ensures that remuneration claimed is only for necessary work properly performed in

the liquidation; and • it covers tasks required to be undertaken in the liquidation which not only relate to

asset realisations but also to reporting requirements and other tasks of an administrative or statutory nature.

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3.3 Explanation of hourly rate

The hourly rates for my remuneration calculation are set out in the following table, together with a general guide showing the qualifications and experience of staff engaged in the liquidation and the role they take. The hourly rates encompass the total cost of providing professional services and should not be compared to an hourly wage.

Schedule of Hourly Rates & General Guide to Staff Experience:

Title Rate ($)

Experience

Partner / Appointee 600 The Partner/Appointee is likely a registered liquidator and member of the CAANZ and the ARITA, bringing specialist skills to the liquidation or insolvency tasks.

Senior Manager 475

Generally, more than 7 years’ experience with at least 4 years as a Manager. University degree; member of the CAANZ and the ARITA; very strong knowledge of relevant insolvency legislation and issues.

Manager 400

Generally, 4-7 years’ experience with well-developed technical and commercial skills. University degree; member of CAANZ and, generally, the ARITA; strong knowledge of relevant insolvency legislation and issues. Controls 2-4 staff.

Senior Analyst 330 Generally, 2-4 years’ accounting or insolvency experience. University degree; completing the CAANZ’s CA program. Good knowledge of basic insolvency legislation and issues.

Analyst 220 Generally, 1-3 years’ accounting or insolvency experience. University degree, CAANZ’s CA program commenced.

Personal Assistant/ Administration 180 Appropriate skills, including books and records management and

accounts processing particular to the liquidation.

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4 Remuneration

The following information is provided to assist creditors in their understanding of how the Liquidator’s remuneration is calculated and substantiated. The remuneration I am asking the creditors of the Company to approve is as follows:

For Period Amount ($) Rates to apply

When it will be drawn

Work already done (Resolution 1)

8 June 2021 to 21 June 2021

56,151 See section 3.3 of this report

Immediately, when funds are available or at the end of the Liquidation

Future work (Resolution 2)

22 June 2021 to the finalisation of the liquidation

45,205 See section 3.3 of this report

Immediately, when funds are available or at the end of the Liquidation

Total 101,356

Please refer to the following appendices for further detail of the resolutions being proposed:

Appendix Description

A For actual resolutions being proposed to creditors. These resolutions also appear in the Notice of Proposal to Creditors forms provided to you with the Liquidator’s Initial Circular dated 21 June 2021.

B For a breakdown of time spent by staff members on each major task for work already done during the liquidation of the Company, and for estimates of time required for tasks yet to be performed in the liquidation.

C For details of the work already completed and the future work that I intend to do during and to the finalisation of the liquidation of the Company.

Approval for the future remuneration sought is based on our best estimate of the necessary work to complete the liquidation of the Company. Should additional work beyond my estimate be required, further approval may be sought from creditors. If further approval is sought, creditors will be provided with a further remuneration report on the time spent on tasks, along with an update on the progress of the liquidation. Factors that may delay the progress of the liquidation and increase the remuneration incurred include:

• unexpected litigation; • disputes with creditors in relation to their claims; • complications regarding employees and their entitlements; and • delays in realising the assets of the Company.

5 Likely impact on dividend

A Liquidator is entitled to be remunerated for work that is necessary and properly performed. The work carried out by the Liquidator may produce funds that are available for distribution to a company’s creditors.

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If the remuneration is approved, I will draw these funds from the funds available in the liquidation. If insufficient funds are available, I will not be remunerated fully. I will receive payment prior to the payment of most creditors in the liquidation; this will reduce the dividend payable (if any) to creditors of the Company.

6 Remuneration recoverable from external sources

The Liquidator has not received, but is entitled to receive, funding from external sources in respect of remuneration. The Liquidator may receive funding from ASIC to further investigate the actions of the director and Company’s officers.

7 Disbursements

Disbursements are divided into three types:

• External professional services - these are recovered at cost. An example of an externally provided professional service is legal fees.

• External non-professional costs – these are recovered at cost. Examples of external non-professional expenses include travel, accommodation and search fees.

• Firm non-professional costs – such as photocopying, printing and postage. These costs, if charged to the liquidation, would be recovered at cost.

I am not required to seek creditors’ approval for costs paid to third parties or for disbursements where I am recovering a cost incurred on behalf of the liquidation. However, I must account to creditors for such expenditure and I must be satisfied that those disbursements are appropriate, justified and reasonable. Details of these disbursements are included in the receipts and payments, please refer to section 8 of this report.

8 Summary of receipts and payments

A summary of the receipts and payments for the liquidation from the date of appointment to 21 June 2021 is presented at Appendix D.

9 Queries

If you require further information in respect of the above, or have other questions, please contact Terrence Chong of this office on 08 6145 0700, or via email at [email protected].

10 Information available

I am a professional member of the ARITA and Avior Consulting follows the ARITA Code. A copy of the Code may be found on the ARITA website at www.arita.com.au. You can also access information which may assist you on the following websites:

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• ARITA at www.arita.com.au/creditors • ASIC at www.asic.gov.au (search for INFO 85).

Dated 21 June 2021

Dermott McVeigh Liquidator

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Appendix A – Remuneration resolutions being sought

Resolution 1: 8 June 2021 to 21 June 2021 That the remuneration of the Liquidator, as set out in the Remuneration Approval Report dated 21 June 2021, for the period from 8 June 2021 to 21 June 2021 be fixed up to an amount of $56,151 plus any applicable GST and may be paid.

Resolution 2: 22 June 2021 to the finalisation of the liquidation That the remuneration of the Liquidator, as set out in the Remuneration Approval Report dated 21 June 2021, for the period from 22 June 2021 to completion of the liquidation be fixed up to an amount of $45,205 plus any applicable GST. Should approval be required in relation to additional remuneration incurred, such approval will be sought in a separate resolution placed before creditors.

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Appendix B – Time spent and to be spent by staff on each major task group

Employee Position Rate ($) Hrs Amount Hrs Amount Hrs Amount Hrs Amount Hrs Amount

McVeigh, Dermott Joseph Appointee 600 - - - - 10.3 6,180 - - 10.3 6,180 Meyn, Kelly Partner 600 13.2 7,920 0.5 300 - - 5.8 3,480 19.5 11,700 Switka, Eve Senior Manager 475 10.2 4,845 3.8 1,805 - - 8.7 4,133 22.7 10,783 Schmidt, Miriam Manager 400 18.7 7,480 22.6 9,040 - - 4.2 1,680 45.5 18,200 Chong, Terrence Senior Analyst 330 4.8 1,584 17.0 5,610 2.4 792 3.4 1,122 27.6 9,108 Ward, Kaitlyn Administration 180 - - - - - - 1.0 180 1.0 180 Total 46.9 21,829 43.9 16,755 12.7 6,972 23.1 10,262 126.6 56,151

Resolution 1: 8 June 2021 to 21 June 2021 TotalAdministrationAssets Creditors Investigation

Employee Position Rate ($) Hrs Amount Hrs Amount Hrs Amount Hrs Amount Hrs Amount

McVeigh, Dermott Joseph Appointee 600 - - 2.0 1,200 4.0 2,400 - - 6.0 3,600 Meyn, Kelly Partner 600 3.0 1,800 2.0 1,200 4.0 2,400 0.5 300 9.5 5,700 Switka, Eve Senior Manager 475 5.0 2,375 4.0 1,900 8.0 3,800 1.0 475 18.0 8,550 Schmidt, Miriam Manager 400 8.0 3,200 8.5 3,400 15.0 6,000 1.0 400 32.5 13,000 Chong, Terrence Senior Analyst 330 10.0 3,300 12.0 3,960 19.0 6,270 2.5 825 43.5 14,355 Total 26.0 10,675 28.5 11,660 50.0 20,870 5.0 2,000 109.5 45,205

Investigation TotalResolution 2: 22 June 2021 to completion AdministrationAssets Creditors

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Appendix C – Details of work during the liquidation

Schlager Building Services Pty Ltd (in Liquidation)

Tasks

Task Area General Description

Resolution 1 Work already done

8 June 2021 to 21 June 2021

Resolution 2 Future work


Ass

ets

Receivables • Conducting review of receivables

• Correspondence with debtors

• Making enquiries to assess the recoverability of outstanding amounts

• Preparation of letters to debtors requesting payments of amounts outstanding

• Following up outstanding debtors and considering further action required

• Reconciling debtor receipts

Cash at Bank • Preparing correspondence to banks to request accounts be frozen

• Submitting request to banks to provide account information and bank statements

• Preparation of transfer request for the cash at bank to the liquidation account

• Communicating with bank representatives as required

• Reconciling bank account

Plant & Equipment • Reviewing asset listing and depreciation schedule

• Conducting motor vehicle enquiries and ownership searches

• Reviewing motor vehicle finance contracts and payout figures

• Liaising with finance providers

• Preparing letters to financiers to disclaim motor vehicle finance contracts

• Preparing notices of disclaimers on ASIC portal

• Further liaising with finance providers as required

• Arranging valuation to be undertaken of plant and equipment

• Arranging sale of plant and equipment if required

Other assets • Reviewing and investigating other potential assets of the Company

• Reviewing residential construction contracts on foot at appointment and assessing commerciality of continuing with the contracts

• Disclaiming construction contracts

• Liaising with third party builders to potentially take over contracts

• Preparing confidentiality agreements and datarooms for third party builders

• Liaising with third party builders regarding contracts

• Assisting with transfer of contracts (if required)

TOTAL Assets 46.9 hours $21,829

26.0 hours $10,675

Cre

dit

ors

Correspondence • General correspondence • General correspondence

Creditor enquiries, requests and directions

• Receiving and responding to creditor enquiries by telephone and email

• Considering reasonableness of creditor requests

• Compiling and collating information requested by creditors

• Updating contact information of creditors

• Liaising and attending to enquiries from clients with residential contracts on foot at appointment

• Receiving and responding to creditor enquiries by telephone and email

• Compiling and collating information requested by creditors

• Liaising and attending to enquiries from clients with residential contracts on foot at appointment

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Tasks



8 June 2021 to 21 June 2021



Cre

dit

ors

(Co

nti

nu

ed)

Secured creditors • Corresponding with secured creditors, including notification of appointment

• Conducting PPSR search and reviewing results

• Preparing correspondence to registered security interest holders

• Corresponding with secured creditors

• Reviewing information provided by secured creditors

• Assessing validity of security interests held

Dealing with Proofs of Debts

• Receiving proofs of debt

• Maintaining proof of debts register

• Receiving proofs of debt

• Maintaining proof of debts register

• Requesting further substantiation or correction of form particulars

Creditor reports/proposals

• Preparation of initial correspondence to creditors and their representatives

• Preparing proposal notices and voting forms

• Forwarding notice of proposal to all known creditors

• Responding to stakeholder queries and questions

• Preparing correspondence to creditors

• Following up creditor responses to remuneration notice of proposal

• Responding to stakeholder queries and questions

• Preparing Statutory Report by Liquidator

• Preparing and lodging results of proposals without meeting of creditors withASIC

Employees • Reviewing and preparing correspondence to employees, including notice oftermination of employment

• Reviewing employee payroll details in Xero

• Preparing letters to employees advising of their entitlements and optionsavailable

• Assessing employee priority claims

• Liaising with the Fair Entitlement Guarantee scheme

• Reviewing outstanding superannuation

• Correspondence with Child Support

• Liaising with the Fair Entitlement Guarantee scheme

• Arranging preparation and lodgement of Superannuation Guarantee ChargeStatements

TOTAL Creditors 43.9 hours $16,755

28.5 hours $11,660

Inve

stig

atio

n Conduct

investigations • Reviewing and analysing the Company’s financial records

• Reviewing and analysing the Company’s non-financial records

• Reviewing correspondence provided by external parties

• Liaising with the Department of Mines, Industry Regulation and Safety asrequired

• Preparation of investigation file

• Conducting investigations into the Company’s books and records

• Reviewing potential legal claims

• Correspondence and discussions with the Company’s accountants

• Correspondence and discussions with the Company’s stakeholders

• Reviewing and analysing the Company’s non-financial records

• Reviewing correspondence provided by external parties

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Tasks



8 June 2021 to 21 June 2021



Inve

stig

atio

n

(Co

nti

nu

ed)

Insolvent trading, voidable transactions and other investigations

• Conducting statutory investigations into voidable transactions

• Conducting investigations into potential breaches of directors’ duties

• Analysing and assessing the commerciality of potential liquidator recoveries

• Conducting investigations to determine date of insolvency

• Assessment of potential claim

• Preparing insolvent trading report

• Determining viability of insolvent trading claim against Director

• Conducting statutory investigations into voidable transactions

• Conducting investigations into potential breaches of directors’ duties

• Conducting investigations to determine date of insolvency

• Analysing and assessing the commerciality of potential liquidator recoveries

• Pursuing recovery of preferential payments to the Australian Taxation Officeand other creditors, as appropriate

• Analysing, assessing and pursuing recovery of potential voidable transactions

Report to ASIC • Preparing report to ASIC outlining findings from investigation

• Reviewing response from ASIC

TOTAL Investigation 12.7 hours $6,972

50.0 hours $20,870

Ad

min

istr

atio

n

Correspondence • Notifying relevant agencies, service providers and other authorities ofappointment

• Preparing correspondence to service providers regarding transfer and orcancellation of services

• Correspondence with Chamber of Commerce and Industry WA

• General correspondence

Reports/Updates/Meetings with stakeholders

• Telephone calls with key management and staff

• Preparing and Reviewing DIRRI

• Telephone calls with key management and staff

•

Document maintenance, file review, checklist

• Filing of documents

• Conducting file reviews and updating checklists

• Completing liquidator reviews

• Filing of documents

• Conducting file reviews and updating checklists

Bank account administration

• Correspondence with banks

• Opening liquidation bank account

• Banking of deposits

• Preparation of payments

• Bank account reconciliations

Directors • Correspondence with Director

• Preparing requests for Report on Company Activities and Property and booksand records

• Correspondence with Director as required

ASIC forms and lodgements

• Lodging notifications with ASIC

• Preparing and lodging statutory forms

• Preparing and lodging statutory forms

• Corresponding with ASIC regarding statutory forms as required

ATO and other statutory reporting

• Preparing and lodging notification of appointment

• Adding Company’s ABN to liquidator’s portal on ATO

• Preparing and lodging Business Activity Statements

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Tasks



8 June 2021 to 21 June 2021



Ad

min

istr

atio

n

(Co

nti

nu

ed)

General administration

• Setting up administrative management processes

• Conducting risk assessments

• Managing internal accounting software

Planning / Review • Appointment day action planning and team meetings

• Engagement planning

• Holding discussions regarding the status of liquidation

• Holding discussions regarding the status of liquidation

Books and records / storage

• Receipt of books and records

• Filing of books and records

• Receipt of additional books and records

• Filing of books and records

TOTAL Administration 23.1 hours $ 10,262

5.0 hours $2,000

TOTAL All tasks 126.6 hours $56,151

109.5 hours $45,205

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Appendix D – Summary of receipts and payment For the period 8 June 2021 – 21 June 2021

Receipts Amount ($)

Chamber of Commerce and Industry WA 27,954

Debtor collections 3,179

Total receipts 31,133

Payments

Total payments -

Cash at bank as at 21 June 2021 31,133

Notice of Proposal to Creditors

Corporations Act 2001 Insolvency Practice Rules (Corporations) 2016 Division 75-130

SCHLAGER BUILDING SERVICES PTY LTD (in Liquidation) ACN 601 882 188 (the Company) Formerly trading as Schlager Homes

Proposal 1 for creditor approval – Liquidator’s remuneration

That the remuneration of the Liquidator, as set out in the Remuneration Approval Report dated 21 June 2021, for the period from 8 June 2021 to 21 June 2021 be fixed up to an amount of $56,151 plus any applicable GST, and may be paid.

Reasons for the proposal and the likely impact on creditors if passed

The proposal is a request to creditors to approve the Liquidator’s remuneration for tasks already completed. If the remuneration is approved, the Liquidator will draw these funds from the funds available in the liquidation. This will reduce the dividend payable (if any) to creditors of the Company. Failure to approve the Liquidator’s remuneration via this proposal will result in a meeting of creditors being called to seek the remuneration approval. This will result in additional time and costs being incurred in the liquidation, for which further remuneration will be sought by the Liquidator.

Vote on proposal

Creditors have the option of approving, not approving or objecting to the proposal being resolved without a meeting of creditors. Please select the appropriate Yes, No or Object box referred to below:

Yes ☐ I approve the proposalNo ☐ I do not approve the proposalObject ☐ I object to the proposal being resolved without a meeting of creditors

Your claim against the Company must be admitted for the purposes of voting by the Liquidator for your vote to count. Please select the option that applies:

☐ I have previously submitted a Proof of Debt and supporting documents☐ I have enclosed a Proof of Debt and supporting documents with this form

Creditor details

Name of creditor: _________________________________ ACN/ABN: __________________

☐ I am not a related party creditor of the Company☐ I am a related party creditor of the Company, relationship: ____________________________

Address: _______________________________________________________________________

Name of authorised person: ________________________________________________________

Signature: _____________________________________________ Date: ___________________

Please complete this document and return with any supporting documents by no later than 5pm, Tuesday, 13 July 2021 for your vote to be counted, to [email protected] or c/- Avior Consulting, PO Box 92, WEST PERTH WA 6872.




Proposal 2 for creditor approval – Liquidator’s remuneration

That the remuneration of the Liquidator, as set out in the Remuneration Approval Report dated 21 June 2021, for the period from 22 June 2021 to completion of the liquidation be fixed up to an amount of $45,205 plus any applicable GST. Should approval be required in relation to additional remuneration incurred, such approval will be sought in a separate resolution placed before creditors.


The proposal is a request to creditors to approve the Liquidator’s remuneration for tasks yet to be completed. If the remuneration is approved, the Liquidator will draw these funds from the funds available in the liquidation. This will reduce the dividend payable (if any) to creditors of the Company. Failure to approve the Liquidator’s remuneration via this proposal will result in a meeting of creditors being called to seek the remuneration approval. This will result in additional time and costs being incurred in the liquidation, for which further remuneration will be sought by the Liquidator.

Vote on proposal



Your claim against the Company must be admitted for the purposes of voting by the Liquidator for your vote to count. Please select the option that applies:


Creditor details

Name of creditor: _________________________________ ACN/ABN: __________________

☐ I am not a related party creditor of the Company☐ I am a related party creditor of the Company, relationship: ____________________________

Address: _______________________________________________________________________


Signature: _____________________________________________ Date: ___________________





PROPOSAL 3 for creditor approval – company books and records

That the Liquidator be authorised, subject to obtaining the approval of the Australian Securities & Investments Commission (ASIC) pursuant to Insolvency Practice Schedule section 70-35(3), to dispose of the books and records of the Company 12 months after the dissolution of the Company or earlier at the discretion of ASIC.


The proposal is a request to creditors to authorise the Liquidator to dispose of the books and records of the Company 12 months after the dissolution of the Company, or earlier subject to obtaining approval from ASIC. Failure to obtain approval for this proposal will result in a meeting of creditors being called. This will result in additional time and costs being incurred in the liquidation, for which further remuneration will be sought by the Liquidator.

Vote on proposal



Your claim against the Company must be admitted by the Liquidator for the purposes of voting for your vote to count. Please select the option that applies:


Creditor details

Name of creditor: ___________________________________ ACN/ABN: __________________

☐ I am not a related party creditor of the Company☐ I am a related party creditor of the Company, relationship: _____________________________

Address: _______________________________________________________________________


Signature: _____________________________________________ Date: ___________________


FORMAL PROOF OF DEBT FORM FORM 535

Corporations Act 2001 Regulation 5.6.47 Insolvency Practice Rules (Corporations) 2016 Sections 75-85, 75-86, 75-87

SCHLAGER BUILDING SERVICES PTY LTD (in Liquidation)

ACN 601 882 188 (the Company)

Formerly trading as Schlager Homes

To the Liquidator of the Company

1. This is to state that Schlager Building Services Pty Ltd (in Liquidation) was on 8 June 2021, and still is,justly and truly

indebted to ……………………………………………………………………………………………………… (name of creditor)

for ……………………………………dollars and ……………………………cents (amount) (amount)

Particulars of the debt are:

Date Consideration Amount ($) Remarks (state how the debt arose) (include details of voucher substantiating

payment)

2. To my knowledge or belief the creditor has not, nor has any person by the creditor’s order, had or receivedany satisfaction or security for the sum or any part of it except for the following: (insert particulars of all securitiesheld. If the securities are on the property of the Company, assess the value of those securities. If any bills or othernegotiable securities are held, show them in a schedule in the following form).

Date Drawer Acceptor Amount Due Date

*3. (STRIKE OUT IF NOT APPLICABLE) I am employed by the creditor and authorised in writing by thecreditor 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. (STRIKE OUT IF NOT APPLICABLE) I am the creditor’s agent authorised in writing to make this statementin writing. I know the debt was incurred for the consideration stated and that the debt, to the best of my knowledgeand belief, remains unpaid and unsatisfied.

Date:

Signature:

Name:

Phone Number:

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

ARITA ACN 002 472 362

Level 5, 191 Clarence Street, Sydney NSW 2000 Australia | GPO Box 4340, Sydney NSW 2001 t +61 2 8004 4344 | e [email protected] | arita.com.au

AUSTRALIAN RESTRUCTURING INSOLVENCY & TURNAROUND ASSOCIATION

Information sheet: Proposals without meetings

You may be a creditor in a liquidation, voluntary administration or deed of company arrangement (collectively referred to as an external administration).

You have been asked by the liquidator, voluntary administrator or deed administrator (collectively referred to as an external administrator) to consider passing a proposal without a meeting.

This information sheet is to assist you with understanding what a proposal without a meeting is and what your rights as a creditor are.

Meetings of creditors were previously the only way that external administrators could obtain the views of the body of creditors. However, meetings can be very expensive to hold.

A proposal without a meeting is a cost effective way for the external administrator to obtain the consent of creditors to a particular course of action.

The external administrator is able to put a range of proposals to creditors by giving notice in writing to the creditors. There is a restriction under the law that each notice can only contain a single proposal. However, the external administrator can send more than one notice at any single time.

The notice must:

• include a statement of the reasons for the proposal and the likely impact it will have on creditorsif it is passed

• invite the creditor to either:o vote yes or no to the proposal, oro object to the proposal being resolved without a meeting, and

• specify a period of at least 15 business days for replies to be received by the externaladministrator.

If you wish to vote or object, you will also need to lodge a Proof of Debt (POD) to substantiate your claim in the external administration. The external administrator will provide you with a POD to complete. You should ensure that you also provide documentation to support your claim.

If you have already lodged a POD in this external administration, you do not need to lodge another one.

The external administrator must also provide you with enough information for you to be able to make an informed decision on how to cast your vote on the proposal. With some types of proposals, the law or ARITA’s Code of Professional Practice sets requirements for the information that you must be provided.

What types of proposals can be put to creditors?

What information must the notice contain?

What is a proposal without a meeting?

AUSTRALIAN RESTRUCTURING INSOLVENCY & TURNAROUND ASSOCIATION PAGE 2

22302 - INFO - Proposals information sheet v1_0.docx Version: July 2017

For example, if the external administrator is asking you to approve remuneration, you will be provided with a Remuneration Approval Report, which will provide you with detailed information about how the external administrator’s remuneration for undertaking the external administration has been calculated.

You can choose to vote yes, no or object to the proposal being resolved without a meeting.

A resolution will be passed if more than 50% in number and 50% in value (of those creditors who did vote) voted in favour of the proposal, but only so long as not more than 25% in value objected to the proposal being resolved without a meeting.

If the proposal doesn’t pass and an objection is not received, the external administrator can choose to amend the proposal and ask creditors to consider it again or the external administrator can choose to hold a meeting of creditors to consider the proposal.

The external administrator may also be able to go to Court to seek approval.

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. The external administrator will also be unable to put the proposal to creditors again without a meeting.

You should be aware that if you choose to object, there will be additional costs associated with convening a meeting of creditors or the external administrator seeking the approval of the Court. This cost will normally be paid from the available assets in the external administration.

This is an important power and you should ensure that it is used appropriately.

The Australian Restructuring Insolvency and Turnaround Association (ARITA) provides information to assist creditors with understanding external administrations and insolvency.

This information is available from ARITA’s website at artia.com.au/creditors.

ASIC also provides information sheets on a range of insolvency topics. These information sheets can be accessed on ASIC’s website at asic.gov.au (search for “insolvency information sheets”).

What are your options if you are asked to vote on a proposal without a meeting?

What happens if the proposal doesn’t pass?

What happens if I object to the proposal being resolved without a meeting?

Where can I get more information?

How is a resolution passed?

Information about the Company’s affairs

Documents

Transcript of Information about the Company’s affairs