Restructuring, Turnaround and Insolvency Specialists

Official Liquidation

Case Study 1 – The Reigonal Services Company

The business of the company operated as an earthmoving equipment importer and on seller, as well as completing contracted earthmoving tasks in the Bendigo and Regional areas.

Upon our appointment we immediately located the company’s contact details and made brief contact with the director.  The director initially refused to speak with us.  So we then attended the principle place of business as per the Australian Securities and Investments Commission (“ASIC”) database, in Bendigo, Victoria to investigate the affairs of the company and secure any assets.  Whilst in Bendigo we also located the company’s accountant via the registered office who was able to provide assistance and open a dialog with the director.  We note that we were unable to locate the director in the initial stages, however, with ASIC’s and the company’s accountant assistance we were able to locate and question the director.

We note that our initial investigations identified some of the items of earthmoving plant and equipment were located at a Melbourne based plant and equipment auctioneer and we were able to secure these assets for the benefit of creditors. Further, we note the director advised that the former director, and former partner in the business, had possession of a leased company vehicle (no equity was determined in the vehicle) had claimed to be in satisfaction of a director’s loan account, which was recovered for the benefit of ordinary unsecured creditors, as it reduced the claim of the lessor.  The return to the creditors in this administration was approximately 52 cents in the dollar.

 

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