close
Share with your friends

Appointment details

Appointment type

Joint & Several Liquidators – 23 March 2020 to current

Joint & Several Voluntary Administrators – 4 July 2019 – 22 March 2020

Appointees Hayden White, Wayne Rushton and Stephen Parbery
Companies subject to Administration Berrington Care Group Pty Ltd ACN 138 074 352
Berrington Group Pty Ltd ACN 609 745 726
Office Perth
Old and young hands on a cane

KPMG contact

Separator line

Background information

On Thursday, 4 July 2019, Hayden White, Wayne Rushton and Stephen Parbery of KPMG were appointed as Joint and Several Voluntary Administrators (“the Administrators”) of Berrington Care Group Pty Ltd and Berrington Group Pty Ltd (collectively “the Companies”) by its common sole director.

Voluntary administration is a statutory process designed to provide for the business, property and affairs of an insolvent company to be administered in a way that maximises the chances of the company continuing in existence, or if that is not possible to provide for a better return for a company's creditors and members than if the company was immediately wound up.

On 11 March 2020 the Administrators completed the sale of the Berrington business to Bethanie and the second creditors’ meeting was held on 23 March 2020. It was at the second creditors’ meeting that the creditors resolved for the Companies to be wound up and the Administrators became Liquidators.

The Liquidators will continue to progress their statutory investigations into the potential breaches identified in the Administrators report to creditors dated 13 March 2020. 

Proposed acquisition of Berrington by Bethanie

On 5 December 2019, the Companies entered into a business sale agreement with The Bethanie Group Inc (ABN 60 992 323 648) (Bethanie) for the proposed acquisition by Bethanie of the aged care business of the Companies (Transaction). If the Transaction completes, Bethanie will take over ownership and control of Berrington Como and Berrington Subiaco. All residents will be able to remain in those facilities and Bethanie will take on the responsibility of providing these residents with accommodation and care in accordance with the Aged Care Act 1997 (Cth) (Act).

Following completion of the Transaction on Wednesday, 11 March 2020, the following has occurred:

  • All Berrington Como and Berrington Subiaco places will be provided by Bethanie.
  • Each resident of Berrington Como and Berrington Subiaco will have a resident agreement with Bethanie.
  • All employees who accept offers of employment from Bethanie, which are unconditional or become unconditional prior to completion, will be employed by Bethanie.
  • All obligations to refund any outstanding accommodation payment balances at completion of the Transaction will be met.
  • All other RADs or accommodation bonds previously paid to BCG will become obligations of Bethanie.

Application to extend convening period

On 22 July 2019, the Administrators filed an application with the Supreme Court of Western Australia under sections 439A(6) and 447A(1) of the Corporations Act 2001 (Act) to extend the convening periods to hold the second creditors meetings of the Companies. Under section 439A of the Act, the current convening periods of the Companies are due to expire on 1 August 2019. On 25 July 2019, the Administrators received the requested extensions for the convening periods up to and including 1 November 2019 (i.e. three month extension).

On 28 October 2019, the Administrators filed a further application with the Supreme Court of Western Australia under sections 439A(6) and 447A(1) of the Act to further extend the convening periods, and on 29 October 2019, the Court made Orders extending the convening period for the second meetings of creditors up to and including 14 February 2020.

On 4 February 2020, the Administrators filed a further application with the Supreme Court of Western Australia to further extend the convening periods, and on 6 February 2020, the Court made Orders extending the convening period for the second meetings of creditors up to and including 14 April 2020.

The Administrators' opinion is that this additional time is required for a number of key reasons, including to enable the Administrators to complete the sale of Berrington’s business with the preferred bidder, to continue liaising with the Australian Government Department of Health regarding the Companies, and to enable the Administrators to complete their investigations.

First meeting of creditors

The Administrators hosted a meeting on Tuesday, 16 July 2019, in accordance with section 436E of the Corporations Act 2001 (“the Act”).

The purpose of this meeting was to allow creditors to determine:

  • whether a committee of inspection should be appointed
  • the appointment of an alternative administrator should such a resolution be put before the meeting.

Second meeting of creditors

The Administrators hosted a concurrent second meeting of creditors on Monday, 23 March 2020, in accordance with section 439A of the Act. The key purpose of this meeting was to allow creditors to:

  • consider the report of the Administrators
  • fix the remuneration and disbursements of the Administrators
  • resolve whether to wind up the entities
  • if it was resolved that the entities be wound up, to fix the remuneration and disbursements of the Liquidators.

 

Separator line

Latest updates

Read the latest updates regarding the external administration of Berrington Care Group.

11 March 2020

On 11 March 2020 the Administrators completed the sale of the Berrington business to Bethanie and the second creditors’ meeting was held on 23 March 2020. It was at the second creditors’ meeting that the creditors resolved for the Companies to be wound up and the Administrators became Liquidators.

The Liquidators will continue to progress their statutory investigations into the potential breaches identified in the Administrators report to creditors dated 13 March 2020. 

Separator line
Separator line
Separator line
Separator line
Separator line

ASIC insolvency material

The Australian Securities & Investments Commission provides resources on insolvency for directors, practitioners, employees, creditors and investors.

Separator line

Support

Coping with the emotional impact of financial distress.

Beyond Blue

beyondblue offers some useful resources for people struggling with the emotional impact of financial distress.

The beyondblue Support Service provides confidential, one-on-one counselling with a trained mental health professional.
Phone: 1300 22 4636

Lifeline

Lifeline offers phone crisis counselling for people who are experiencing financial and emotional hardship.

Phone: 13 11 14 Australia-wide
Online crisis support chat (7:00pm to 4:00am daily)

Separator line