Our Experience

We were engaged by the Board of New Zealand women’s fashion retailer, Max Fashions to explore options to avoid insolvency due to COVID-19. We developed a restructuring plan that reduced payments to suppliers, closed unprofitable stores and reduced rent on remaining stores, using a Creditors Compromise to compel minority dissenting creditors to comply with the restrucutring. The restructure saved over 200 jobs and more than half of the retail network.

McGrathNicol was appointed administrators of the Ziera Shoes wholesale and retail businesses, who own around 50 stores across New Zealand and Australia. Using our retail expertise, we quickly implemented a trading strategy that increased turnover five fold, whilst securing a sale of the IP to Munro Group. Negotiating stock releases from suppliers reduced creditor claims and increased recoveries further, resulting in secured creditors being repaid in full and the majority of unsecured creditors receiving almost 90% of their claims.

We were appointed receivers of the legacy Hawkins Construction business in New Zealand following a sale of the majority of the business and assets to Downer Engineering. We undertook detailed reviews of remaining construction disputes, managed the engagement of experts and lawyers, and negotiated resolutions to long-running disputes to generate recoveries, using our specialist construction industry experience and knowledge.

We were appointed to assist an infrastructure company facing insolvency due to a single large onerous contract. Our role involved assessing the restructuring options, considering the impact of various options on different stakeholders, and executing the preferred plan. We negotiated an exit from the contract for the company, providing the client with the means to continue with the project, rescuing the business from potential insolvency, and consequently avoiding any losses for creditors.

Appointed Administrators to Mediacloud Australia, a cloud-based broadcast platform for the delivery of media content to a select number of customers, including the Special Broadcasting Service Corporation (SBS), TVSN Channel Pty Ltd and Indigenous Community Television Limited. As Voluntary Administrators, we successfully traded and sold the core business and assets to a blue-chip Australian Telecommunications provider.

We were appointed Administrators and subsequently Deed Administrators of the Australian operations of Dr Roebuck's, an Australian based global “clean beauty” skincare brand. We negotiated and effected a trade sale of the physical and IP assets to a well known spa operator which allowed for employee, secured and participating unsecured creditors to be repaid in full.

We were appointed Liquidators by the court (at the application of ASIC). The financial services provider had ceased trading with a number of determinations outstanding from the Australian Financial Complaints Authority in response to complaints raised by former clients. We undertook a detailed statutory investigations which included a reconstruction of its general ledger account in order to properly assess events leading up to the liquidation. We also assisted claimants with unpaid determinations to seek claims against a government established compensation scheme.

Receivership over a purpose built, self-storage facility from a long term leasehold interest in the Perth Airport precinct, which generated annual underlying earnings of circa $1.0 million. We stabilised and maintained operations, whilst undertaking a going concern realisation campaign. Notwithstanding the onset of COVID-19 at the critical juncture of the campaign, we secured an above market sale to a listed REIT and successfully navigated complicated Federal and State Government, Airports Act and FIRB approvals.

We were engaged by a large, privately owned zinc mine with east coast operations that had suffered sustained losses due to production delays, rising AISC and a falling commodity price. The directors sought safe harbour protection while taking steps to implement a turnaround plan and attempt a sale and recapitalisation process that would maximise the return to creditors.

We were engaged by a national independent grocery delivery business seeking safe harbour protection. The business comprised of over 100 franchisees with a turnover exceeding $100 million. The unsustainable business model resulted in continued losses, leading the directors to seek safe harbour protection whilst a formal sale process was attempted as an alternate to the immediate appointment of a voluntary administrator.

Engaged by an ASX listed livestock and shipping business that had breached numerous facility agreements due to financial underperformance. The directors sought safe harbour protection whilst a turnaround plan was designed and implemented which included negotiation of standstill arrangements, sale and lease back of key assets and a potential sale transaction. The turnaround plan was successfully completed.

Conducted the wind down of the Red Lea Group’s farm, logistics, processing and retail operations. We pro-actively engaged with stakeholders including employees, farmers and franchisees to minimise the impact. Our investigations identified the transfer of assets and potential claims against related parties. We negotiated a Deed of Company Arrangement, as an alternative to liquidation. It is expected that full payment will be made to secured and priority creditors.

We were appointed Receivers of The Coomboona Group by the primary secured creditor on the back of a shareholder dispute. Together with our dairy industry alliance partner, we quickly stabilised cash flow and rationalised operations (herd size, management structure, feed regime) to facilitate the going concern sale of the business. Our client’s mortgage was acquired by the 2nd ranking charge holder with our client making a full recovery including costs.

As Receiver and Manager, appointed by a private investment and advisory firm, we managed a controlled wind down of the business and developed and implemented comprehensive realisation strategies across a portfolio of assets, including a fleet of equipment, various downstream equity interests and a portfolio of residential and commercial property.

We undertook an independent review of a large New Zealand residential home builder for the board and its financier, to highlight strategic risks and steps the company could take to mitigate these risks. Our review covered the businesses stock (land and buildings), management systems, impacts of market forces, cash flow and capital structure.

Appointed Administrators to Toys R US, Australia's largest speciality toy retailer, with 44 stores, over 2500 employees during peak times and annual turnover of c.$300m. We traded the business to realise over $100m in stock while running a dual track sales process for the business and intellectual property, including websites, customer lists and licences. We returned to the secured creditor 4-5 times the funds they were willing to accept in respect of a going concern sale.

Appointed as Voluntary Administrators over this mobile advertising technology start-up following a legal dispute with Google. Notwithstanding significant constraints, we realised Unlockd’s technology and IP assets via a multi-jurisdictional sale campaign, in parallel to pursuing litigation funding for claims against Google.

We were appointed as Voluntary Administrators to the RCR Group following a high level review of cash flow forecasts and a capital raising process. RCR had operations across Australia, New Zealand and Asia and expanded into building solar farms, with 15 solar farm construction projects in progress upon our appointment. We traded and sold the majority of RCR’s businesses, are settling disputes with solar farm counterparties and planning for the distribution of funds to secured and priority creditors.

Engaged by the secured noteholders initially as Restructuring advisors and subsequently Receivers and Managers of Quintis Limited. We restructured the operations, removing cost and improving the financial recovery from institutional and high net worth clients. After conducting a public sale process we concluded a loan to own transaction with the bondholders. The transaction was novel and utilised a DOCA and Scheme of Arrangement mechanism, as well as an application under Chapter 15 of the Bankruptcy Code in the US.

Receivership and controllership appointments over the entities that operate and own ‘Alfred and Constance’ (pub/restaurant) and ‘Limes Hotel’ (21 rooms) in Brisbane. We implemented a trading strategy and reopened each venue. The assets were marketed for sale as going concerns through a hospitality industry specialist agent.

With no offers for the Topshop New Zealand business, we were appointed receivers and leveraged our retail expertise to maximise returns from stock through targeted marketing and merchandising. We also generated proceeds from assigning leases and recovering overpaid rent, resulting in preferential creditors being paid in full and a return for the secured creditor.

Baralaba held a large coal tenement portfolio across the Bowen, Surat and Galilee Basins in Queensland. As Administrators, we facilitated a sale and recapitalisation of the business including negotiating how to split value between lenders and creditors. Our role required a detailed understanding of each resource and its modelling assumptions and the ability to understand the nuances of the capital structure to ensure value was allocated in accordance with creditor rights.

As Administrators of this ASX/NZX listed education provider we ensured the schools continued uninterrupted, with full support of the regulators and major stakeholders. Managing a prompt sale to a major private education provider significantly reduced contingent liabilities that would otherwise have crystallised from the loss of jobs, abandonment of leases, and cessation of teaching.

We were appointed Voluntary Administrators of the ASX listed, stapled investment trusts that formed the BrisConnections group of companies, including its subsidiary companies which operated the AirportLink tunnel in Brisbane. The Group entered into Deeds of Company Arrangement and were subsequently wound up. The Group had over 100 employees and a large number of stakeholders.

Engaged as advisors to the syndicate of senior lenders of the Royal Adelaide Hospital who were collectively owed $2.5bn. We undertook a review of the financial model and the implications of delayed completion on project economics, worked with the syndicate’s legal advisors to understand the legal and commercial impact of unresolved disputes and represented the lenders’ interests in a protracted mediation occurring between the disputing parties. The hospital is now open and operating normally and we are currently concluding a settlement of the disputes between the key stakeholders.

As Administrators of Pumpkin Patch, we investigated and reported on the key causes of the failure of this ASX/NZX listed children’s clothing retailer, which were set out in our public report to creditors and shareholders. Key causes were an inefficient store network, failed international expansion, poor systems, and excessive dividends.

Appointed as Voluntary Administrators of Dick Smith, an ASX listed electronics retailer that operated over 390 stores under 4 different brands across Australia and New Zealand. Our appointment occurred following a short period of advising management and the board in relation to cash flow, solvency and options. With receivers appointed over the main retail trading entity, we managed and sold the specialist Apple reseller business, in addition to achieving a number of legal recovery actions.

Lead advisor to an international syndicate of banks across Australia, Asia and the UK owed in excess of AUD$800m. Our in depth analysis and strategic guidance assisted our clients to evaluate and improve the restructuring options presented by the Company and ultimately exit at optimal value. We also played a central role in formulating the debt for equity recapitalisation structure which was ultimately implemented.

As Receivers and Mangers we successfully traded and sold the core satellite telecommunications and teleport business to a global communications provider. Concurrently, we leveraged US Bankruptcy proceedings to preserve NewSat’s interest in a satellite in the US while we explored recapitalisation options in respect of the listed entity.

We were engaged by Racing Queensland to undertake independent business reviews on a number of regional racing facilities throughout Queensland. Our reviews focused on recent financial performance, budgets and financial models and the investment in and utilisation of Racing Queensland assets. We also analysed restructuring strategies that could be used to achieve sustainable business performance during a time of a challenging racing industry environment.

As Receivers of South Canterbury Finance, New Zealand’s largest non-bank deposit taker, we stabilised the business and operations, improved credit processes, and protected the value of assets. We managed the successful sale of key assets including Scales Corporation, Helicopters NZ, Dairy Holdings, the Business, Consumer and Rural loan books and managed the run off of Southbury Insurance.

We negotiated funding to continue the farming operations of Cubbie Group. Through careful stakeholder management and clear communication strategies, we were able to navigate through complex political and public relations issues to capitalise on favourable seasonal conditions. This allowed us to generate unprecedented trading profits and position Cubbie’s unique assets for a ground-breaking sale transaction.

As Receivers & Managers we stabilised the business, curtailed trading losses and marketed the various businesses for sale. We negotiated and concluded 12 sale agreements over a 6 month period while trading each of the business divisions. Full repayment to priority creditors was achieved in addition to a greater than expected return to the secured lender.

Receivership of ASX listed Agribusiness company Great South Limited, which promoted managed investment schemes in forestry, horticulture and viticulture. Our role involved the management of multiple stakeholders and sale of the key forestry assets following pre-sale due diligence of financial and operational information.

Lead financial advisor to the Australian lender group, comprising eight banks and numerous US private placement noteholders, collectively owed circa AUD$4.5 billion. We implemented a ground breaking 3 year stabilisation plan and restructured Centro Properties Group assets. The consolidated Group remains listed on the ASX and continues to trade successfully.

Receivership of major wine producer Evans & Tate, as the business had suffered poor financial performance due to inadequate management, unviable contracts, under capitalisation and market over supply. We negotiated and implemented a new third party national distribution agreement to replace the existing sales force which was costly and ineffective. The business and brands were successfully sold to McWilliams Wines.