What is a liquidation?
- A Liquidation is the orderly winding up of the affairs of a company. It requires the appointed registered liquidator to manage and finalise all residual matters in respect to the company in liquidation. Please refer to ASIC's Liquidation: A guide for creditors for a general outline of the relevant tasks to be undertaken by a Liquidator.
What is a court liquidation?
- A court liquidation is a type of liquidation that specifically comes about as a result of an order made by a Court, following a winding up application made to the Court, usually commenced by, but not limited to, a creditor of that company.
What is our role as liquidators?
As Liquidators, our role includes, but is not limited to the following:
- Collect, protect and realise any available assets of the subject company;
- Conduct investigations into the affairs of the subject company, including investigations into potential voidable transactions and/or possible claims against company officers that may be commercial to set aside/pursue recoverability;
- Enquire about the company’s failure and possible offences/breach of duties by company officers, and report possible offences and/or breaches to ASIC;
- Distribute any surplus proceeds from realisations to priority creditors and then unsecured creditors, following the payment of the costs of the liquidation, and subject to the rights of secured creditors; and
- Apply for deregistration of the subject company, following the completion of the liquidation, after which the company ceases to exist as a legal entity and is no longer able to carry out any business or other activity in its own right.
I am a creditor or investor. How do I lodge a claim?
I am a creditor or investor and I have already lodged a claim form. What should I do now?
- If you have already lodged a claim form in the liquidation, nothing further is required from you at this stage.
- Please check this web page periodically for any development updates.
How long will the liquidation process take?
- There is no set timeframe for the duration of a liquidation process.
- The duration of a liquidation is dependent upon various factors, including complexities of the residual matters in the liquidation.
- A liquidation process can take up to several years to conclude in circumstances where there are complexities, ongoing investigations, assets unable to be sold etc.
I am an investor. Will I receive the outstanding principal and/or interest that remains outstanding to me?
- Any distribution to creditors is dependent on adequate asset realisations and recoveries from any claims identified during the course of our investigations in the liquidations.
- A further update on potential returns (if any) will be provided to creditors once all known assets are realised, and our investigations are complete.
In the event that sufficient realisations and recoveries (net of secured interests) are made to enable a distribution in a liquidation, what is the general order of payments?
- The broad order of payment pursuant to section 556 of the Corporations Act 2001 is as follows:
- Petitioning creditor costs;
- Costs and expenses of the subject liquidation, including the Liquidators’ fees;
- Outstanding employee wages and superannuation (if any);
- Outstanding employee leave, including annual leave, personal leave and long service leave (if any);
- Employee retrenchment pay (if any); and
- Unsecured creditors and investors.
- The above order is subject to the rights of secured creditors.
I am a secured creditor. What are my rights?
- If you are a secured creditor and you have a valid security interest, you can appoint an independent and suitably qualified person (i.e. a receiver) to take control of, and realise some or all of the secured assets of the subject company, in order to have your secured debt repaid.
- Another option is to ask us as the Liquidators of the subject company, to deal with the secured assets on your behalf. In this scenario, we would need to account to you for the costs of collecting and selling these assets.
- In order to appropriately exercise any secured creditor rights, you must ensure that you have a valid security interest, and that all requisite steps have been taken as set out in the relevant agreement. You may wish to seek your own legal advice to confirm your position on this matter.
I am a creditor. Should I engage lawyers to represent my interests in a liquidation process?
- It is entirely up to the individual as to whether or not to engage lawyers to represent their interests in a liquidation. Regardless of whether a creditor or investor has legal representation, we will continue to keep all creditors updated on the progress of the liquidations as and when appropriate.
I am a creditor or investor of a company that is part of the Corporate Group, but the company is not listed in the Schedule of Companies (PDF 40KB). What should I do?
- As we are not in control of these entities, any enquiries or correspondence in respect to same should be directed to the registered director(s) of that entity. Alternatively, you may wish to seek your own legal advice in respect to the options available to you.
I have moved or changed my email, how do I update my information for future correspondence?
How will I receive further information?
- All updates will be uploaded to this web page as and when available.
- Accordingly, please check this web page periodically for any updates.
- Email notifications will be sent to known investors and creditors as new information becomes available.
Should creditors have any queries in respect to the above, or in relation to the conduct of the liquidation process, contact us by email on firstname.lastname@example.org.