INSOLVENCY
MANAGEMENT
CASE STUDY 4


Creditors’ Voluntary Winding-Up

Background

M was a top-end restaurant located at leased premises in Sydney CBD. It boasted a great reputation, award-winning chefs and an immaculate fit-out. Much of its business came from executive lunches and theatre patrons.

Following the opening of another excellent restaurant nearby, trading losses were incurred and the business became insolvent. Efforts to either have the rent reduced or to sell the business were unsuccessful.

Suppliers of food, liquor and utilities were unpaid for supplies provided in the previous 45-60 days; and there were substantial rental arrears. The company also had a secured creditor. The bank indicated that it did not wish to appoint a receiver.

Levi Consulting determined that there was no advantage in seeking a Deed of Company Arrangement.




Conclusion

Meetings for M's members and creditors were convened and the company entered into creditors’ voluntary liquidation. At the creditors’ meeting, creditors had the opportunity to hear from the liquidator, he directors, and thereafter monitor the liquidator’s progress.

The liquidator (David Levi) performed an investigation into the causes of the failure and prepared a report for the consideration of creditors.

Take a moment to call David Levi at 02 9016 4113 or email dlevi@leviconsulting.com.au. And let us help you get your company to where it needs to be.
This case study is not a substitute for formal advice concerning your circumstances. Liability limited by a Scheme approved under the Professional Standards Legislation.

Levi Consulting Pty Ltd ABN 73 136 770 208