SV Partners was recently appointed Administrator to a Company which was subject to ongoing litigation and disputes, with claimants submitting Proofs of Debt in excess of $200 million. Despite not having  proven debts these claimants wielded significant power in the Administration to further their respective positions. It’s not uncommon for parties to assert rights against a company on the basis that, although no present liability exists, a claim relating to pre-administration...

‘Damages’ or ‘Compensation’ referred to in Section 116(2)(g) of the Bankruptcy Act 1966 (‘the Act’) are termed ‘Exempt Money’ or ‘Protected Money’. Common examples include compensation, damages (or rights to recover same) arising from personal injury; wrong done to and/or the death of, the Bankrupt, the Spouse or De Facto partner of the Bankrupt or a member of the family of the Bankrupt.  Sections 116(3) and (4) respectively go on...

As forensic accountants we often prepare business valuations for many varied reasons including: Family law disputes Business interruption calculations Shareholder disputes For the purposes of lending For the purpose of selling, and many more It goes without saying the more profitable and systemised a business is the higher the value of the business. Obviously a business that makes a higher profit is worth more, all things being equal, in comparison to...

Dick Smith and Laura Ashley demise only tip of the iceberg for Australian retail industry Eleven more major Australian retailers with turnovers of $100 million or more are facing the same high risk situation as collapsed retail giants Dick Smith and Laura Ashley, according to commercial data by specialist accounting firm SV Partners.The SV Partners March 2016 Commercial Risk Outlook Report analyses more than 20 million financial records from various sources...

A recent decision handed down by Black J in the New South Wales Supreme Court provides some timely guidance for creditors seeking to rely upon the good faith defence to an unfair preference claim brought by a liquidator. For those who may not know, a liquidator may pursue a creditor under the Corporations Act 2001 (Cth) (the Act) in circumstances where a creditor has received an advantage over other creditors, by...

    A mining company’s successful business turnaround [Read More] Reducing the taxation burden in financial settlements [Read More] How property matters in Bankruptcy [Read More] The Good faith defence to an unfair preference claim brought by a liquidator [Read More]   Australian Accountants, Lawyers & Directors Conference (AALDC) - 5 to 12 January 2017 - Aspen, Colorado [Read More]   Myth Busting Time - Is perception stopping you getting paid? [Read More]             ...

Late last year we were approached by a 63-year old lady who presented with the following ‘financial symptoms’: Assets Liabilities 50% interest in a vacant block - $25,000 Bank debt (unsecured) - $215,000 Motor vehicle - $5,000 Superannuation - $100,000 Income (self-employed) - $50,000 p.a. The debtor’s main income-producing activity from 2002 until 2009 was buying and selling properties.  She encountered financial difficulty during the GFC which, as we know, affected the real estate market and her ability...

Following on from an article we wrote last year, there has been a ruling in the case of Forge Group Power Pty Limited (in liquidation)(receivers and managers appointed) v General Electric International Inc [2016]. Failing to register four gas turbines on the PPSR has turned into a costly exercise for General Electric, with the Supreme Court of NSW ruling in favour of the assets vesting with Forge Group Power Pty Limited (in...

Boom, Bust and Bankruptcy – the consequences of doomed property investments [Read More] FinTech’s - What are they and how are they shaping the banking and financial services sector? [Read More] What is Goodwill, and how to quantify its value [Read More] Case Study - Debt settlement with a bank [Read More] Lessons from the field - What other firms are doing to get paid [Read More] Forge, Turbines and the PPSA [Read More] ...

Imagine this: it is 2009 and you are in your mid-20s. You have purchased your own home having diligently paid the mortgage since you saved your first home deposit. You have done well to have half the mortgage paid off and things are looking bright for the future.One day you see an advertisement for a property investment seminar. It looks like a great opportunity. Just look at how successful the owner...