Background

  • The company was placed into liquidation in September 2012 by ATO
  • Unrelated creditor claims exceed $553,000
  • The directors engaged an unregulated pre-insolvency advisor to assist with the company’s insolvency and restructure
  • Shortly prior to the liquidation:
    • A new company was set up with the assistance of the pre-insolvency advisor
    • Some company assets were sold to the new company
    • An additional $22,000 was paid from the old company to the new company
    • $36,200 was paid to the advisor on the directors’ behalf from company funds

The challenge

  • To recover $22,000 paid to the new company  prior to liquidation
  • To recover $36,200 paid to the advisor on the directors’ behalf
  • Determine if the new company paid for the purchase of the existing company’s assets

How Pilot helped

  • We successfully recovered the full amount of $58,200 from the directors and new company for the benefit of creditors
  • Investigations were undertaken to confirm that the new company had paid consideration for assets transferred from the old company

In summary

WARNING: Make sure you seek advice from an accredited and experienced advisor to ensure your restructure is done properly.

To learn more contact Nigel Markey, Ann Fordyce  or Brad Hellen from our Restructuring division on (07) 3023 1300.