#3109327v1
Statutory Report by Liquidator ACN 114 920 311 PTY LTD (IN LIQUIDATION) (FORMERLY BULLZYE PTY LTD) ACN 114 920 311 (the Company)
20 May 2020
Cameron Crichton
Joint and Several Liquidator
T (07) 3222 0449
Graham Robert Killer
Joint and Several Liquidator
T (07) 3222 0449
Statutory Report to Creditors 2
Introduction
We refer to our initial correspondence to creditors dated 17 March 2020 in which I advised you of our
appointment as Joint and Several Liquidators on 9 March 2020 and your rights as a creditor in the liquidation.
The purpose of this report is to:
Provide you with an update on the progress of the liquidation;
Provide you with an estimate of the assets and liabilities of the Company;
Provide you with a summary of the trading activities of the Company during the liquidation;
Brief you on the investigations undertaken and further inquiries that need to be undertaken;
Advise you of likely recovery actions; and
Advise you of the likelihood and timing of dividends being paid to different classes of creditors in the
liquidation.
We will also be requesting that you consider our detailed remuneration report and pass resolutions to approve
our remuneration.
The Joint and Several Liquidators have relied on information provided from numerous sources to prepare the
report, including:
Discussions with Gerard Kraatz and Aaron Owens (the Directors) of the Company;
The Reports on Company Affairs and Property provided by the Directors;
Discussions with the Secured Creditors of the Company;
Information available from public sources, such as, Australian Securities and Investments Commission
(ASIC), the Queensland Department of Transport (“TMR”), and Intellectual Property Australia;
A review of the Company's books and records provided to date.
While we have no reason to doubt the accuracy of any information, we have not performed an audit and
reserve the right to alter our conclusions, should the underlying data prove to be inaccurate or change
materially from the date of appointment.
Company Background
Company Affairs
The Company was incorporated on 23 June 2005. The head office operated from a leased premises at Unit 2,
15 Terrace Place, Murarrie, Queensland, and five retail stores were located in Bundaberg, Rockhampton,
Mackay, Toowoomba and Townsville.
The Company operated a country clothing and accessory retail business, selling both online and in the physical
retail stores, selling products such as workwear, gearbags and mudflaps. The Company would also attend
various events and exhibitions each year to further market the business.
We understand the Directors were responsible for the strategic management of the Company and business
operations, with 24 casual and full-time staff undertaking the day to day tasks associated with running the
business.
At the time of this report, all books and records of the Company have been made available to us.
Aaron Owens is the director of one other Company, Aaron Owens Pty Ltd. Our searches indicate that the
Directors have not been associated with any other failed Companies.
Statutory Report to Creditors 3
We were appointed by the Directors and Shareholders of the Company as liquidator on 9 March 2020 while the
Company continued to trade. We continued to trade the Company under a Creditors Voluntary Liquidation.
Cause of the Company’s Failure
The Directors have stated the reason for the Company’s financial difficulties included:
Poor economic conditions;
The effect of COVID-19 on the Company’s supply chain, holding up significant portions of stock in
China;
Inadequate cash flow; and
Trading losses.
Our investigations into the affairs of the Company confirm the Directors’ statement.
Update on the progress of the liquidation
Assets and liabilities
Attached at Appendix A is an analysis of the assets and liabilities of the Company, and comparison to the
Report on Company Activities and Property (ROCAP) as provided by the Directors on 30 and 31 March 2020.
Cash at Bank
On appointment we issued notices to all major Australian financial institutions requesting they immediately
freeze all accounts held in the Company’s name. The following accounts were identified:
Financial Institution Account Type Balance at
appointment Status
Commonwealth Bank of Australia
….718 Overdraft facility
($277,785.85) Receipts after liquidators’ appointment transferred
Australia and New Zealand Banking Group
….615 Business Cheque Account
$496.69 Transferred to liquidation account
Lease Bonds and Bank Guarantees
The Company leased all of the premises that it operated from. Some of these leases were subject to bank
guarantees or cash for up to six months rental security that were held to the benefit of the landlords. With the
exception of the Toowoomba premises, which was being paid month to month, all of the leases had in excess
of 6 months remaining at appointment and we expect that the landlords with entitlement to lease bonds or bank
guarantees will claim them. Approximately c. $61k cash is held as bank guarantees and we do not anticipate
being able to recover these funds.
Stock
On appointment, the most recently prepared report of stock held by the Company estimated stock levels at c.
$423k (valued at cost). The Company had ordered (but not yet paid for) significant levels of stock that became
trapped in China due to the COVID-19 pandemic. This meant the size runs on certain styles of clothing became
limited as stock in Australia became depleted.
We undertook an urgent assessment of the best avenues to realise stock for the benefit of creditors, which
included the options of continued trading through an accelerated closing down sale or a sale of all inventory to
an industry competitor/participant.
An accelerated closing down sale was considered likely to maximize the realisable value of stock while also
preserving the business in the short term whilst we explored opportunities to sell the business, in part or whole
to an industry competitor.
Statutory Report to Creditors 4
The five retail stores held the closing-down sale from 18 March 2020 to 22 March 2020. The stores were closed
following this, with any remaining stock being sent to the head office and sold online.
A summary of our Receipts and Payments as at 20 May 2020 is shown at Appendix C, but we have
summarised the trading operations in the table below.
Estimated profit and loss for trading period from 9 March 2020 to 17 April 2020 Total ($)
Receipts Total Sales 541,458.00
Total Receipts 541,458.00
Payments GST Paid (43,507.65) Postage (37,716.57) Rent & Rates (35,611.16) Wages & Salaries (33,538.67) Insurance (6,028.17) PAYG Paid (5,224.00) Bank Charges (4,359.80) Superannuation Paid (2,919.16) IT (1,766.61) Printing & Stationery (1,415.70) Freight Outwards (1,034.79) Refund (522.00) Waste Removal (328.75)
Total Payments (173,973.03)
Net trading proceeds 367,484.97
Overall, the trading period generated a cash surplus of c. $367k, excluding the Liquidator’s time costs. We
believe the decision to trade has improved the outcome for creditors
Our agents, GraysOnline, have collected the remaining stock and sold it in an auction setting on 13 May 2020
for $19,708.50 (inc. GST) net proceeds to the liquidation. Proceeds have yet to be received by the liquidation,
but these will be remitted to CBA, in accordance with their first-ranking GSA.
Plant & Equipment
Each of the premises on which Bullzye operated held a number of fixtures and fittings. On closure, the fittings
deemed to be commercial to realise were transported to the Head Office.
Our agents, GraysOnline, have collected these fixtures and fittings and sold it in an auction setting on 13 May
2020 for $13,409.14 (inc. GST) net proceeds to the liquidation.
Statutory Report to Creditors 5
Motor Vehicles
On appointment, we conducted a vehicle registration search for the Company, in addition to being provided
information from the Directors, which identified the following vehicles being owned and operated in the
Company’s name:
Vehicle Description Valuation Payout
amount Sale
Status
2010 Holden Commodore
$6,000 - $9,000
Nil $11,300 Sold
2016 Toyota Landcruiser
$50,000 - $55,000
$44,154.35 $48,700 Sold
2017 Expedition Motorhome
$350,000 - $450,000
$366,748.48* N/A Collected by Slattery’s for marketing campaign, in correspondence with
Westpac ahead of sale
2019 Enclosed Dual Axle Trailer
$25,000 - $30,000
$48,827.15* N/A Collected by Slattery’s for marketing campaign, in correspondence with
Westpac ahead of sale
*These two facilities are held by Westpac Banking Corporation and are cross-collateralised.
Proceeds have yet to be received by the liquidation for the vehicles that have been sold, but all proceeds from
vehicle sold will be distributed to CBA, Westpac and Toyota Finance, pursuant to their securities and are
unlikely to be available to unsecured creditors.
Sale of Intellectual Property and Online Business
On appointment, we were made aware of a number of parties who were interested in purchasing the
Company’s remaining stock and/or intellectual property.We commenced an urgent marketing campaign to
these interested parties, providing them with information regarding the Company’s intellectual property.
On Wednesday 15 April 2020, we reached an agreement with a purchaser, who agreed to purchase specified
assets of the Company for $80,001.00 ex. GST, including the Company’s Intellectual Property, website and
available customer/supplier information. This purchase did not include any of the Company’s interests in real
property leases, cash at bank, insurance, stock or any other assets not specified within the agreement.
A condition of the asset sale agreement was for the change of the Company’s name from Bullzye Pty Ltd to its
ACN. This change was completed on 8 May 2020.
We are currently working with the purchaser to ensure all conditions of the agreement are met, and all specified
assets are transferred.
Net proceeds from this sale will be distributed to CBA, in accordance with their first-ranking GSA.
Priority Creditors
On our appointment, the Company employed 9 full time staff members and 17 casual staff members, including
the Directors.
We understand employees are owed outstanding superannuation, accrued annual leave and long service
entitlements.
I have terminated all employees to date, and this will incur notice and redundancy payments to eligible
employees, as dictated by the Fair Work Ombudsman.
The ATO are eligible to claim for outstanding Superannuation Guarantee Charge entitlements in place of
employees. The ATO have been advised of the outstanding superannuation obligations, and I am in the
process of adjudicating on this amount.
I estimate total outstanding employee entitlements to be c. $778k.
Statutory Report to Creditors 6
Pursuant to Section 556 of the Corporations Act 2001, Directors of the Company are only entitled to claim a
maximum of $2,000 for unpaid wages and superannuation, and $1,500 for unpaid annual leave, PILN and long
service leave as a priority claim. As such, c. $179k ranks of entitlements rank as priority claims, while $c. 599k
ranks as unsecured.
Secured Creditors
I have contacted all PPSA registration holders following my appointment and note the current status of the
secured creditors below:
Secured Creditor Number of
registrations Type Role
Australia and New Zealand Banking Group Limited
2 AllPAAP with exception
Awaiting confirmation of discharge of securities
Commonwealth Bank of Australia
1 AllPAAP no exceptions
In correspondence with creditor regarding their security and the liquidation
Westpac Bank Corporation
2 Other Goods In correspondence with creditor regarding sale of specified assets
Dimglen Pty Ltd 2 Motor Vehicle & Other Goods
Awaiting confirmation of discharge of securities
The Trustee for Echelon Retail Unit Trust
1 Other Goods Discharged
Toyota Finance Australia Ltd
1 Other Goods In correspondence with creditor regarding sale of specified assets
Green Group Property Holdings Pty Ltd
1 Other Goods Security questionnaire and proof of debt received
Hanes Australia Pty Ltd
1 Other Goods Discharged
Brand Collective Pty Ltd
1 Other Goods Discharged
RCG Brands Pty Ltd 1 Other Goods Awaiting confirmation of discharge of security
Unsecured Creditors
Attached at Appendix B is a schedule representing the unsecured creditor position of the Company.
A review of the Company’s Books and Records, in addition to the proof of debts received to date, indicates an
unsecured creditor pool of c. $2m.
To date, I have not adjudicated on unsecured creditor claims, and all are subject to change.
Receipts and Payments to date
Attached at Appendix C are details of all receipts and payments in the liquidation to date. I currently have cash
at bank of $412,512.04.
Estimated Outcome Statement
Attached at Appendix D is an estimated outcome statement (EOS), with our current prediction on the flow
funds going for to the conclusion of the liquidation. These figures are estimates only, and are subject to change.
Statutory Report to Creditors 7
Investigations and recovery actions
Investigations undertaken
I have commenced my initial investigations into the affairs of the Company prior to my appointment and any
potential recovery actions that may be available to the Joint and Several Liquidators to pursue.
To date, we have undertaken the following investigations:
Review of adequacy of books and records;
Review of Director’s actions and any potential breaches of director duties;
Assessment of potential insolvent trading; and
Review of potential voidable transactions.
My findings of these investigations are detailed below. Given the limited time that has passed in the liquidation,
and that further investigations will be undertaken, the below findings are preliminary and may be subject to
change. Pursuant to s533 of the Corporations Act (Cth) (the “Act”), I will report any breach to ASIC.
Should it be determined that there are potential claims against the Directors, recovery of such claims will be
dependent on whether the Directors are in a financial position or has the ability to meet such claims. I have
conducted a property search of the Directors, each of whom either jointly own or whose spouse owns a
property. Both of these properties are encumbered by mortgages.
Directors and officers to assist the liquidators
Section 530A of the Corporations Act 2001 (Cth) places a positive obligation on a director to assist the
liquidator of a company. I believe that the Directors have complied with his obligation pursuant to s530A of the
Act.
Director’s obligations to maintain adequate books and records
The Company’s electronic MYOB Accountright file appears to record comprehensive transactions up to the date
of my appointment. In addition, I have collected the Company’s hard drives, and received assistance from the
Directors in interpreting certain information.
At this time I have no evidence to suggest that the Directors have breached their obligations to maintain
adequate books and records of the Company pursuant to s286 of the Act.
Insolvent trading
I have reviewed both the cash flow and balance sheet tests of insolvency and have determined that the
Company likely became insolvent during or before January 2019 based on the following factors:
Persistent Current Ratio (Current Assets divided by Current Liability) less than 1 in FY2019 and
FY2020;
Trading losses in FY19 and FY20, with poorer seasonal financial performances than in previous years;
There were unpaid amounts for significant trade creditors dating back to January 2019;
More than 50% of creditors (in value) aged 90+ days onwards from January 2019 consistently; and
Arrangement of a payment plan with the ATO in January 2019.
If an action regarding insolvent trading is commenced, provided it is commercial to do so, further work will be
completed in respect of determining a date of insolvency.
Statutory Report to Creditors 8
Voidable transactions
Unreasonable director-related transactions
My investigations have not identified any unreasonable director-related transactions at this stage. The Directors
both have advanced monies to the Company in the two years preceding the liquidation as an unsecured loan to
fund the trading of the Company. These loan balances have not decreased in the two years, and in fact have
increased as the Directors have advanced further monies to the Company.
Unfair preference payments
My investigations have uncovered a number of payments to a creditor which may be considered preferential
totaling c. $61k. Further work will be conducted in this regard before any claim against the creditor is made.
Further inquiries to be undertaken
We plan to undertake the following further investigations:
Accurately determine the date of insolvency, if required to establish claims;
Pursue any voidable transaction claims and director-related transactions, where I deem it commercial
to do so;
Report on my investigations and findings to the ASIC, pursuant to s533 of the Act.
Likelihood of a dividend
The likelihood of a dividend being paid to different class of creditors is typically affected by a number of factors
including:
The amount of assets realisable and the costs of realising those assets.
The statutory priority of certain claims and costs.
The value of various classes of claims including secured, priority and unsecured creditor claims.
The volume of enquiries by creditors and other stakeholders.
With this report, I have provided a notice of intention to declare a dividend to priority creditors on or before 24
June 2020. I currently hold sufficient funds to discharge priority creditors in full.
All remaining asset realisations will be applied to partially discharge the debt of the CBA. I am not in a position
at this stage to advice on any unsecured dividend at this stage as this will be contingent on my ability to recover
voidable transactions.
Cost of the liquidation
I am seeking approval of remuneration of $108,821.00 (exclusive of GST) for the period from appointment to
finalisation of the liquidation.
This has marginally increased compared to our previous estimates in the Initial Remuneration Notice because:
The extended campaign to sell the Intellectual Property of the Company;
The duration of the trading period of the Company; and
The remaining work required to fully realise assets for the benefit of creditors.
Attached at Appendix E is a detailed report on my remuneration, called a Remuneration Approval Report. I am
unable to pay my remuneration without the approval of creditors or the court.
I am seeking creditor approval of our remuneration by a proposal without a meeting.
To participate in the proposal, please complete and return the following by no later than 17 June 2020.
Statutory Report to Creditors 9
The “proposal without a meeting” form/s included at Appendix F.
The “proof of debt” form included at Appendix G which enables you to provides information about what the
company owes you, along with supporting documents for your claim (if not returned previously).
The documents can be scanned and emailed to [email protected] or returned via post to our firm’s
address, attention Nathan Bleakley. If you choose to return these documents via post, please ensure that you
allow enough time for us to receive them by the due date.
What happens next in the liquidation?
I will proceed with the liquidation, including:
Sell the remaining assets;
Realise any further available property;
Complete my investigations into the Company’s affairs;
Complete my reporting to the corporate insolvency regulator, the Australian Securities and Investments
Commission (ASIC);
Distribute funds to priority creditors, and declare any subsequent distributions in the liquidation when
appropriate; and
Any other matters relevant to the liquidation.
I may write to you again with further information on the progress of the liquidation.
I expect to have completed this liquidation within 12 months.
Compliance with best practice
I confirm that this report complies with the requirements in the Insolvency Practice Rules (IPR), specifically IPR
70-40, as well as the statements of best practice issued by the Australian Restructuring Insolvency and
Turnaround Association (ARITA) with regard to content of the Statutory Report by Liquidator and the Code of
Professional Practice with regard to remuneration.
What to do next
You should now:
Read the report and attached information.
Determine if and how you are going to vote on the proposal.
Complete and return your proposal voting form and proof of debt by 17 June 2020.
Where can you get more information?
You can access information which may assist you on the following websites:
1 ARITA at www.arita.com.au/creditors
2 ASIC at www.asic.giv.au (search for “insolvency information sheets”).
Statutory Report to Creditors 10
Should you have any queries with respect to the above, you may also contact Nathan Bleakley of my office on
+61 7 3222 0449 or via email on [email protected]. There is also information about this liquidation on
my firm’s website, www.grantthornton.com.au under Creditors Information. Creditors are advised to search
“Bullzye Pty Ltd” at the top of the webpage to easily navigate to the page.
Dated: 20 May 2020
Cameron Crichton
Joint and Several Liquidator
List of attachments
Appendix A - Assets and Liabilities comparison to ROCAP
Appendix B – List of Unsecured Creditors
Appendix C - Joint and Several Liquidators’ receipts and payments
Appendix D – Estimated Outcome Statement
Appendix E - Remuneration Approval Report
Appendix F - Proposals without a meeting
Appendix G - Proof of Debt
No signature required
Statutory Report to Creditors 11
Assets and Liabilities comparison to ROCAP Gerard Kraatz & Aaron Owens ROCAP
As at 9 March 2020
Director’s Book Value
$
Director’s ERV
$
Liquidator’s ERV
$
Assets
Cash at Bank 482 482 497
Cash on Hand at stores 4,229 4,229 4,229
Vehicles 609,000 609,000 400,000
Fixtures and Fittings 118,000 118,000 25,000
Stock 423,203 423,203 560,000
Intellectual Property 50,000 50,000 80,001
Total Assets 1,204,914 1,204,914 1,069,727
Liabilities
Amounts owing to Priority Creditors 131,673 131,673 185,993
Amounts owing to Secured Creditors 820,931 820,931 739,157
Amounts owing to Unsecured Creditors 2,012,815 2,012,815 2,022,022
Total Creditors 2,965,419 2,965,419 2,947,172
Total Surplus (Deficiency) (1,760,505) (1,760,505) (1,877,445)
Appendix A
Statutory Report to Creditors 12
List of Unsecured Creditors Creditor Name Amount
($)
ADT Security 116.54
Au Digital 4,014.04
Australian and New Zealand Banking Group 40,518.36
Australian Taxation Office 55,582.67
Ausure Ruralco Pty Ltd 3,363.70
Bee Dee Bags 3,693.80
Big Pond (Telstra) 1,251.22
BJ & KI Davidson Super Fund 35,861.04
Bonzer Limited 96,890.48
Btap Logistics International Pty Ltd 15,212.99
Bundaberg Broadcasters Pty Ltd 1,980.00
Bullzye - Gift Vouchers Outstanding 1,303.20
Bundaberg Field Day Society 800.00
Bybcah Pty Ltd 9,179.50
Cleanaway 65.92
Dormakaba Australia Pty Ltd 99.00
Ergon Energy 3,625.64
Federal Express 1,865.59
Flaming North Fire Protection 214.50
FTTOA Pty Ltd 194,423.00
Green Group Property Holdings Pty Ltd 9,919.90
IMG Property Management 3,372.51
Inxpress 14,035.58
JJ Richards 454.20
Kraatz, Gerard 557,737.36
Liaise International Pty Ltd 1,750.43
Liive Vision Pty Ltd 1,334.24
Mail Plus 351.45
Mareeba District Rodeo Assn Inc 1,900.00
Michael De Pinto 235.13
Mitchell's Cap Company Pty. Ltd. 21,323.00
Owens, Aaron (Mr) 390,009.69
Oz Hoop Pty. Ltd. 5,225.00
Pinoir Pty. Ltd. 13,597.50
Qic Properties Pty Ltd 13,160.76
Rechenberg Security & Locksmiths 112.40
Red Energy 1,425.02
S.J Davidson & Oceanatic Pty Ltd 80,765.71
Sass Clothing Pty Ltd 9,233.53
Sb Fire Services Pty Ltd 181.50
Spruson & Ferguson 1,309.00
The Man From Snowy River Bush 1,000.00
The Trustee For Darmic Trust 179.00
The Trustee For Kinetic Business Trust 2,560.81
Townsville Window Cleaning 110.00
True Active Ltd 418,227.81
Workcover Qld 2,449.29
Total Unsecured Creditors 2,022,022
Appendix B
Statutory Report to Creditors 13
Joint and Several Liquidators’ receipts and payments
Receipts and payments account as at 20 May 2020 Total ($)
Receipts Total Trading Sales 541,458.00 Sale of Intellectual Property 88,001.10 Fixtures & Fittings 13,409.14 GST Rounding 0.10
Total Receipts 642,868.34
Payments First Dividend for Secured Creditors (53,845.20) GST Paid (48,149.10) Wages & Salaries (33,538.67) Rent & Rates (28,980.24) Postage (19,182.29) Legal Fees (17,039.88) Insurance (6,028.17) Liquidator Fees (5,500.00) PAYG Paid (5,224.00) Bank Charges (4,359.80) Superannuation Paid (2,919.16) IT (1,766.61) Printing & Stationery (1,415.70) Freight Outwards (1,034.79) Refund (522.00) Stamp Duty (480.03) Waste Removal (328.75) ASIC Application Fees (41.00)
Total Payments (230,356.30)
Net cash on hand 412,512.04
Appendix C
Statutory Report to Creditors 14
Estimated Outcome Statement (EOS)
Appendix D
Bullzye Pty Ltd (In Liquidation)Estimated outcome statement (ex. GST)as at 20 May 2020 Amounts ($)
Cash on hand (liquidator's account) 412,512
Cash on hand as at 20 May 2020 412,512
Future realisations
Net proceeds from vehicles 13,716
Stock 17,917
Total estimated available cash 444,145
Trading costs to be discharged
Post-appointment Annual Leave & Leave Loading (3,945)
Remaining Trading Costs to be paid (37,500)
Total trading costs to be discharged (41,445)
Net funds available 402,699
Liquidation costs and expenses
Liquidators time incurred to 17 May 2020 2020 (ex. GST) (83,821)
Liquidator disbursements incurred (excl. legal fees, ex. GST) (2,330)
Total liquidation costs expenses (86,151) (86,151)
Net current position 316,548
Liquidator future costs and expenses
Est. Liquidator time to be incurred (35,000)Est. Liquidator disbursments to be incurred (1,000)
Total estimated future liquidator and legal expenses (35,000)
Net remaining funds 281,548
Priority creditors
Wages (2,000)
Superannuation (73,283)
Annual Leave (19,463)
Leave Loading (2,881)
Long Service Leave (14,190)
PILN (20,385)
Redundancy (53,846)
Total Priority Creditors (184,049)
Net funds remaining for secured creditors 97,499
Secured creditors
Commonwealth Bank Overdraft (225,582)
Voidable Transaction Claim
Preference Payments 61,000
Net funds available unsecured creditors 61,000
Unsecured creditors
Current known unsecured creditors (2,022,682)
Estimated c/$ distribution 0.03$
Prepared by Grant Thornton on 20 May 2020
All figures are estimates only, are subject to change and may vary significantly
Statutory Report to Creditors 15
Remuneration Approval Report
Appendix E
Remuneration Approval Report
ACN 114 920 311 PTY LTD (IN LIQUIDATION) (FORMERLY BULLZYE PTY LTD) ACN 114 920 311 (“the Company”)
#3115847v1
This remuneration approval report provides you with the information you need to be able to make an
informed decision regarding the approval of our remuneration for undertaking the Creditors Voluntary
Liquidation of ACN 114 920 311 Pty Ltd (Formerly Bullzye Pty Ltd).
This report has the following information included:
Part 1: Declaration 3
Part 2: Executive Summary 3
Part 3. Remuneration 4
3.1 Remuneration claim resolutions 4
3.2 Details of remuneration 4
3.3 Total remuneration reconciliation 5
3.4 Likely impact on dividends 5
Part 4: Disbursements 6
4.1 Internal disbursement claim [if required] 6
4.2 Future basis of internal disbursements [if required] 7
Part 5: Approval of remuneration and internal disbursements 7
Part 6: Queries 8
Schedule A – Resolution 1 Summary Table 9
Schedule B – Resolution 1 Table of major tasks for remuneration 10
Schedule C – Resolution 2 Table of major tasks for remuneration 14
Contents
Remuneration Approval Report 2
You should read this report and the other documentation that we have sent you.
To minimise the costs in this Creditors Voluntary Liquidation, we have elected to seek the approval of
creditors for our remuneration and internal disbursements without a meeting.
You can cast your vote by using the included voting forms. These forms then need to be returned to our
office by post, scanned and emailed or faxed. We need to receive your forms by 17 June 2020 for your
vote to count. If you chose to use post, please allow enough time for your letter to be delivered.
If you have any questions, or need any assistance with understanding the materials we have sent to
you, please contact Nathan Bleakley on (07) 3222 0449 or [email protected].
What do you need to do
next?
Remuneration Approval Report 3
Part 1: Declaration Cameron Crichton and Graham Robert Killer of Grant Thornton Australia Limited have undertaken a
proper assessment of this remuneration claim for our appointment as Joint and Several Liquidators of
ACN 114 920 311 Pty Ltd (Formerly Bullzye Pty Ltd) in accordance with the law and applicable
professional standards. We are satisfied that the remuneration claimed is in respect of necessary work,
properly performed, or to be properly performed, in the conduct of the Creditors Voluntary Liquidation.
Part 2: Executive Summary The total remuneration for this appointment is estimated to be $108,821.00 (excluding GST).
Under section 60-1 of the Insolvency Practice Schedule, we are entitled to claim $5,000 (ex. GST) for
remuneration prior to the approval of creditors. The retrospective remuneration claimed below is
inclusive of this amount already paid.
This has marginally increased compared to our previous estimates in the Initial Remuneration Notice
because:
The extended campaign to sell the Intellectual Property of the Company;
The duration of the trading period of the Company; and
The remaining work required to fully realise assets for the benefit of creditors.
Remuneration currently claimed is summarised below:
Period Report Reference
Amount (ex GST)
Current Remuneration claim:
Creditors Voluntary Liquidation
Resolution 1: 9 March 2020 to 17 May 2020 Part 3, Sch A,B $83,821.00
Resolution 2: 18 May 2020 to Finalisation Part 3, Sch C $25,000.00
TOTAL remuneration claimed $108,821.00
* Approval for the future remuneration sought is based on an estimate of the work necessary to the completion of the administration. Should additional work be necessary beyond what is contemplated, further approval may be sought from creditors.
Internal disbursements currently claimed are summarised below:
Period Report Reference
Amount (ex GST)
Current internal disbursements claim:
Creditors Voluntary Liquidation
Resolution 3: 9 March 2020 to 17 May 2020 Part 4 $2,330.10
Resolution 4: 18 May 2020 to Finalisation Part 4 $1,000.00
TOTAL internal disbursements claimed
$3,330.10
* Approval for the future internal disbursements sought is based on an estimate of the internal disbursements necessary to the completion of the administration. Should additional disbursements be necessary beyond what is contemplated, further approval may be sought from creditors.
Remuneration Approval Report 4
Part 3. Remuneration
3.1 Remuneration claim resolutions
We will be seeking approval of the following resolutions to approve our remuneration. Details to support
these resolutions are included in section 3.2 and in the attached Schedules.
Resolution 1 from 9 March 2020 to 17 May 2020: “That the remuneration of the Joint and Several
Liquidators, their partners and staff, for the period from appointment to 17 May 2020, calculated at the
hours spent at the rates detailed in the Initial Remuneration Notice provided to creditors, is approved for
payment in the amount of $83,821.00, exclusive of GST, to be drawn from available funds immediately
or as funds become available.”
Resolution 2 from 18 May 2020 to finalisation: “That the future remuneration of the Joint and Several
Liquidators for the period from 18 May 2020 to finalisation, is determined at a sum equal to the cost of
time spent by the Joint and Several Liquidators and their partners and staff, calculated at the hourly
rates as detailed in the Initial Remuneration Notice provided to creditors, that may be increased at a rate
of up to 5% at 1 July each year (rounded to the nearest $10), up to a capped amount of $25,000.00,
exclusive of GST, and that the Joint and Several Liquidators can draw the remuneration from available
funds as time is incurred on a monthly basis or as funds become available.”
3.2 Details of remuneration
The basis of calculating the remuneration claims are summarised below and the details of the major
tasks performed and the costs associated with each of those major tasks are contained in Schedules B
and C.
Resolution 1 from 9 March 2020 to 17 May 2020: “That the remuneration of the Joint and Several
Liquidators, their partners and staff, for the period from appointment to 17 May 2020, calculated at the
hours spent at the rates detailed in the Initial Remuneration Notice provided to creditors, is approved for
payment in the amount of $83,821.00, exclusive of GST, to be drawn from available funds immediately
or as funds become available.”
The table at Schedule A sets out time charged to each major task area by staff members working on the
Creditors Voluntary Liquidation for the period from appointment to 17 May 2020 which is the basis of the
Resolution 1 claim. More detailed descriptions of the tasks performed within each task area, matching
the amounts below, are contained in Schedule B.
Remuneration Approval Report 5
Resolution 2 from 18 May 2020 to finalisation: “That the future remuneration of the Joint and Several
Liquidators for the period from 18 May 2020 to finalisation, is determined at a sum equal to the cost of
time spent by the Joint and Several Liquidators and their partners and staff, calculated at the hourly
rates as detailed in the Initial Remuneration Notice provided to creditors, that may be increased at a rate
of up to 5% at 1 July each year (rounded to the nearest $10), up to a capped amount of $25,000.00,
exclusive of GST, and that the Joint and Several Liquidators can draw the remuneration from available
funds as time is incurred on a monthly basis or as funds become available.”
The below table sets out the expected costs for the major tasks likely to be performed by the Joint and
Several Liquidators and our staff for the period 1 May 2020 to finalisation is the basis of the Resolution 2
claim. More detailed descriptions of the tasks likely to performed within each task area, matching the
amounts below, are contained in Schedule C.
3.3 Total remuneration reconciliation
In preparing this remuneration approval report, I have made my best estimate at what I believe the
Creditors Voluntary Liquidation will cost to complete and I do not anticipate that I will have to ask
creditors to approve any further remuneration. However, should the Creditors Voluntary Liquidation not
proceed as expected, I will advise creditors and I may seek approval of further remuneration and
provide details on why the remuneration has changed. Matters that may affect the progress and costs of
the liquidation include:
The recovery process on any remaining assets;
The outcome of any recovery pursuits; and
The calculation and process of any distributions to creditors.
3.4 Likely impact on dividends
The Corporations Act sets the order for payment of claims against the company and it provides for
remuneration of the Joint and Several Liquidators to be paid in priority to other claims. This ensures that
when there are sufficient funds, the Joint and Several Liquidators receives payment for the work done to
recover assets, investigate the company’s affairs, report to creditors and ASIC and distribute any
available funds. Even if creditors approve our remuneration, this does not guarantee that we will be
paid, as we are only paid if sufficient assets are recovered.
Total ($)
Task Area
Ass
ets
$
Cre
dito
rs $
Em
plo
yee
s $
Inv
es
tiga
tion
$
Div
ide
nd
$
Ad
min
istra
tion
$
Total (est) $25,000 $5,000 $4,000 $4,000 $4,000 $5,000 $3,000
GST $2,500 $500 $400 $400 $400 $500 $300
Total (incl
GST)
$27,500 $5,500 $4,000 $4,400 $4,400 $5,500 $3,300
Remuneration Approval Report 6
Any dividend to creditors will also be impacted by the amount of assets that we are able to recover and
the amount of creditor claims that are admitted to participate in any dividend, including any claims by
priority creditors such as employees.
The Corporations Act sets the order for payment of claims against the company and it provides for
remuneration of the Joint and Several Liquidators to be paid in priority to other claims. This ensures that
when there are sufficient funds, the Joint and Several Liquidators receives payment for the work done to
recover assets, investigate the company’s affairs, report to creditors and ASIC and distribute any
I am providing my notice of intention to declare a dividend to priority creditors along with my report. This
will be a full dividend to priority creditors.
I am not currently able to confirm what level of dividend will be available to secured and unsecured
creditors, as this is subject to a range of variables, particularly the future realisations and creditor claims.
Part 4: Disbursements Disbursements are divided into three types:
Externally provided professional services - these are recovered at cost. An example of an
externally provided professional service disbursement is legal fees.
Externally provided non-professional costs - these are recovered at cost. Examples of externally
provided non-professional costs are travel, accommodation and search fees.
Internal disbursements such as photocopying, printing and postage. These disbursements, if
charged to the Administration, would generally be charged at cost; though some expenses such as
telephone calls, photocopying and printing may be charged at a rate which recoups both variable
and fixed costs. The recovery of these costs must be on a reasonable commercial basis. Details of
the basis of recovery of each of these costs is discussed below.
We have undertaken a proper assessment of disbursements claimed for Bullzye Pty Ltd in accordance
with the law and applicable professional standards. We are satisfied that the disbursements claimed are
necessary and proper.
We will be seeking creditor approval to pay our internal disbursements from creditors.
4.1 Internal disbursement claim
The following internal disbursements have been claimed by our firm for the period from 9 March 2020 to
17 May 2020. Approval of these disbursements from creditors in the amount of $2,330.10 (ex. GST) is
being sought from creditors via a proposal without a meeting.
Disbursements claimed to 10 May 2020
Basis Total (Excl GST)
Postage (small letter) $1.06 / letter $65.78
Postage (large letter) $2.11 / letter $21.10
Search & Filing Fees At cost $174.42
Advertising Charges – Facebook Marketing for closing down sale At cost $2,022.02
Travel: Car Mileage $0.66/km $14.96
Parking At cost $31.82
Total $2,330.10
Remuneration Approval Report 7
Resolution 3: disbursements from 9 March 2020 to 17 May 2020:
“That the disbursements of the Joint and Several Liquidators, their partners and staff for the period 9
March 2020 to 17 May 2020 be approved for payment in the amount of $2,330.10 plus GST and that the
Joint and Several Liquidators can draw the disbursements immediately or as required.”
4.2 Future basis of internal disbursements
Future disbursements provided by our firm will be charged to the administration on the following basis:
Resolution 4: Disbursements from 18 May 2020 to Finalisation:
“That the future disbursements of the Joint and Several Liquidators, their partners and staff for the
period 18 May 2020 to finalisation of the liquidation be approved as per the schedule of costs below, to
a capped amount of $1,000.00 plus GST and that the Liquidator can draw the disbursements
immediately or as required.”
Internal disbursements Rate (Excl GST)
Courier At Cost
Postage (large) $2.11 / letter
Postage (small) $1.06 / letter
Fax (interstate) $2.00 / page
Fax (local) $1.00 / page
Staff vehicle use $0.66 / km
Rates applicable for financial year ending 30 June 2020
Approval of the payment of these disbursements at the above rates to a capped amount of $1,000.00
plus GST is being sought from creditors via a proposal without a meeting,
Part 5: Approval of remuneration and internal disbursements In summary, we are seeking creditor approval for the following resolutions for our remuneration and
internal disbursements.
Resolution 1
“That the remuneration of the Joint and Several Liquidators, their partners and staff, for the period from
appointment to 17 May 2020, calculated at the hours spent at the rates detailed in the Initial
Remuneration Notice provided to creditors, is approved for payment in the amount of $83,821.00,
exclusive of GST, to be drawn from available funds immediately or as funds become available.”
Resolution 2
“That the future remuneration of the Joint and Several Liquidators for the period from 18 May 2020 to
finalisation, is determined at a sum equal to the cost of time spent by the Joint and Several Liquidators
and their partners and staff, calculated at the hourly rates as detailed in the Initial Remuneration Notice
provided to creditors, that may be increased at a rate of up to 5% at 1 July each year (rounded to the
nearest $10), up to a capped amount of $25,000.00, exclusive of GST, and that the Joint and Several
Liquidators can draw the remuneration from available funds as time is incurred on a monthly basis or as
funds become available.”
Resolution 3
Remuneration Approval Report 8
“That the disbursements of the Joint and Several Liquidators, their partners and staff for the period 9
March 2020 to 17 May 2020 be approved for payment in the amount of $2,330.10 plus GST and that the
Joint and Several Liquidators can draw the disbursements immediately or as required.”
Resolution 4
“That the future disbursements of the Joint and Several Liquidators, their partners and staff for the
period 18 May 2020 to finalisation of the liquidation be approved as per the schedule of costs below, to
a capped amount of $1,000.00 plus GST and that the Liquidator can draw the disbursements
immediately or as required.”
Internal disbursements Rate (Excl GST)
Courier At Cost
Postage (large) $2.11 / letter
Postage (small) $1.06 / letter
Fax (interstate) $2.00 / page
Fax (local) $1.00 / page
Staff vehicle use $0.66 / km
Rates applicable for financial year ending 30 June 2020
Additionally, we are seeking approval of the following resolution in respect of the Company’s books and
records:
Resolution 5
“That the creditors direct the Joint and Several Liquidators to apply to ASIC when appropriate or upon
finalisation of the liquidation for consent to destroy books within the retention period in accordance with
IPS 70-35.”
Part 6: Queries If you have any queries in relation to the information in this report, please contact my staff:
Contact Name: Nathan Bleakley
Contact Number: +61 7 3222 0449
Email: [email protected]
You can also access information which may assist you on the following websites:
ARITA at www.arita.com.au/creditors
ASIC at www.asic.giv.au (search for “insolvency information sheets”).
Remuneration Approval Report 9
Schedule A – Resolution 1 Summary Table Time incurred for period 9 March 2020 to 17 May 2020
IPAA Tasks
Assets Creditors Trade On Investigations Administration Employees Statutory
Employee Position
$/Hr (excl. GST)
Total Hours
Total Costs excl. GST Hrs $ Hrs $ Hrs $ Hrs $ Hrs $ Hrs $ Hrs $
Cameron Crichton
Partner 620.00 41.6 25,792.00 26.7 16,554.00 1.3 806.00 4.3 2,666.00 1.7 1,054.00 5.8 3,596.00 1.8 1,116.00 - -
Sally Pace Senior Manager
515.00 12.4 6,386.00 1.4 721.00 6.5 3,502.00 0.3 154.50 0.7 360.50 2.4 1,236.00 0.2 103.00 0.9 463.50
Benjamin Sanders
Senior Associate
385.00 0.6 231.00 - - - - - - - - 0.6 231.00 - - - -
Kegan Nash
Senior Associate
385.00 0.3 115.50 - - - - - - - - 0.3 115.50 - - - -
Nathan Bleakley
Associate 250.00 175.3 43,825.00 32.1 8,025.00 72.1 17,300.00 23.8 5,950.00 12.5 3,125.00 8.4 2,100.00 20.2 5,050.00 6.2 1,550.00
Barbara Proberts
Treasury 245.00 8.4 2,058.00 1.7 416.50 2.0 490.00 - - 0.8 196.00 - - 0.1 24.50 3.8 931.00
Tanya Brown
Treasury 245.00 20.4 4,998.00 - - 0.4 98.00 - - - - 17.6 4,312.00 - - 2.4 588.00
Kelly Byrnes
EA/PA 200.00 1.5 300.00 - - - - - - - - 1.5 300.00 - - - -
Alexandra Hunt
Operational Services
165.00 0.7 115.50 - - - - - - - - 0.7 115.50 - - - -
Total 261.2 83,821.00 61.9 25,716.50 82.3 22,766.50 28.4 8,770.50 15.7 4,735.50 37.3 12,006.00 22.3 6,293.50 13.3 3,532.50
Remuneration Approval Report 10
Schedule B – Resolution 1 Table of major tasks for remuneration The below table provides a description of the work undertaken in each major task area for the period 9
March 2020 to 17 May 2020
Task Area General Description Includes
Assets
61.9 hours
$25,716.50
Sale of Intellectual Property Preparing an information memorandum
Liaising with interested parties – answering queries, preparing confidential information, negotiations
Discussions with purchaser – negotiations
Instructing solicitors regarding contract and negotiations
Attending to condition of asset sale agreement
Internal meetings to discuss/review offers received
Plant and Equipment Liaising with valuers, auctioneers and interested parties
Arranging collection of stock/fittings from site
Reviewing asset listings
Motor vehicles Completing searches to find vehicles
Liaising with directors and auctioneers for collection of vehicles
Assets subject to specific charges
All tasks associated with realising a charged asset
Liaising with secured creditors to seek guidance of realisation of assets
Stock Seeking updates on stock value during trading period
Reviewing stock values
Liaising with purchasers
Liaising with auctioneers to collect and sell remaining stock
Other Assets Tasks associated with realising other assets
Leasing Reviewing leasing documents
Liaising with owners/lessors
Tasks associated with disclaiming leases
Creditors
82.3 hours
$22,766.50
Creditor Enquiries, Requests & Directions
Receive and respond to creditor enquiries
Maintaining creditor request log
Review and prepare initial correspondence to creditors and their representatives
Considering reasonableness of creditor requests
Compiling information requested by creditors
PPSR Search to the PPSR register
Remuneration Approval Report 11
Task Area General Description Includes
Notify PMSI creditors identified from PPSR register
Receive initial notification of creditor’s intention to claim
Correspondence with PMSI creditors, regarding discharge of security
Meeting claimant on site to identify goods
Secured creditor reporting Notifying PPSR registered creditors of appointment
Responding to secured creditor’s queries
Informing secured creditors regarding realisation of assets
Creditor reports Preparing Statutory Report by Liquidator, investigation, meeting and general reports to creditors
Dealing with proofs of debt Receipting and filing PODs
Employees
22.3 hours
$6,293.50
Employees enquiries
Receive and follow up employee enquiries via telephone
Maintain employee enquiry register
Review and prepare correspondence to creditors via email and post
Preparation of letters to employees advising of their entitlements and options available
Preparation of termination documents including separation certificates
FEG Correspondence with FEG
Completing FEG questionnaires
Calculation of entitlements Calculating employee entitlements
Reviewing employee files and company’s books and records
Reconciling superannuation accounts
Reviewing awards
Liaising with solicitors regarding entitlements
Workers compensation claims Correspondence with insurer regarding initial and ongoing workers compensation insurance requirements
Other employee issues Correspondence with Centrelink
Trade On
28.4 hours
$8,770.50
Trade On Management Liaising with suppliers
Liaising with landlords to continue occupancy
Liaising with management and staff
Calls with staff to answer questions re: trading
Attendance on site
Processing receipts and payments
Management of payments to continue trading
Remuneration Approval Report 12
Task Area General Description Includes
Entering receipts and payments into accounting system
Budgeting and financial reporting
Reviewing company’s budgets and financial statements – comparison of historical data to predict trading scenarios
Preparing budgets/forecasts for trading scenarios
Preparing weekly financial reports
Finalising trading profit or loss
Meetings to discuss trading position with directors and staff
Investigation
15.7 hours
$4,735.50
Conducting investigation Collection of company books and records
Reviewing company’s books and records
Review and preparation of company nature and history
Conducting and summarising statutory searches
Preparation of comparative financial statements
Review of specific transactions and liaising with directors regarding certain transactions
Liaising with directors regarding certain transactions
Preparation of investigation file
Statutory
13.3 hours
$3,532.50
Statutory Reporting Notification of appointment
Lodge and correspondence with statutory bodies
ASIC Forms Preparation and lodging ASIC Forms including 505, 507, 5601, 525s etc.
Administration
37.3 hours
$12,006.00
Insurance Identification of potential issues requiring attention of insurance specialists
Correspondence with insurer regarding initial and ongoing insurance requirements
Reviewing insurance policies
Correspondence with previous brokers
Bank account administration Preparing correspondence opening and closing accounts
Requesting bank statements
Bank account reconciliations
Correspondence with bank regarding specific transfers
ATO and other statutory reporting
Preparing BAS
Planning / Review Discussions regarding status of administration
Books and records / storage Dealing with records in storage
Sending job files to storage
Remuneration Approval Report 13
Task Area General Description Includes
Filing of documents
Total
$83,821.00
Remuneration Approval Report 14
Schedule C – Resolution 2 - Table of major tasks for remuneration The below table provides a description of the work to be undertaken in each major task area for the
period 18 May 2020 to finalisation
Task Area General Description Includes
Assets
$5,000
Sale of Intellectual Property Finalise sale conditions for sale of specified assets
Plant and Equipment Liaising with valuers, auctioneers and interested parties
Arranging collection of stock/fittings from site
Reviewing asset listings
Motor vehicles Liaising with auctioneers to sell vehicle
Review marketing materials for sale of motor vehicles
Assets subject to specific charges
All tasks associated with realising a charged asset
Liaising with secured creditors to seek guidance of realisation of assets
Stock Liaising with auctioneers for sale
Other Assets Tasks associated with realising other assets
Creditors
$4,000
Creditor Enquiries, Requests & Directions
Receive and respond to creditor enquiries
Maintaining creditor request log
Review and prepare initial correspondence to creditors and their representatives
Considering reasonableness of creditor requests
Obtaining legal advice on requests
Documenting reasons for complying or not complying with requests or directions
Compiling information requested by creditors
Secured creditor reporting Preparing reports to secured creditor
Responding to secured creditor’s queries
Creditor reports Finalising statutory report to creditors
Dealing with proofs of debt Receipting and filing POD when not related to a dividend
Proposals to Creditors Preparing proposal notices and voting forms
Forward notice of proposal to all known creditors
Reviewing votes and determining outcome of proposal
Preparation and lodgement of proposal outcome with ASIC
Employees
$4,000
Calculation of entitlements Liaising with employees to confirm entitlements
Employee dividend Correspondence with employees regarding dividend
Remuneration Approval Report 15
Task Area General Description Includes
Correspondence with ATO regarding SGC proof of debt
Calculating dividend rate
Preparing dividend file
Advertising dividend notice
Preparing distribution
Receipting POD
Adjudicating POD
Investigation
$4,000
Conducting investigation Reviewing company’s books and records
Review of specific transactions and liaising with directors regarding certain transactions
Liaising with directors regarding certain transactions
Preparation of investigation file
Lodgement of investigation with the ASIC
Preparation and lodgement of supplementary report if required
ASIC reporting Preparing statutory investigation reports and s533 report
Liaising with ASIC
Dividend
$5,000
Processing proofs of debt Preparation of correspondence to potential creditors inviting lodgement of POD
Receipt of POD
Maintain POD register
Adjudicating POD
Request further information from claimants regarding POD
Preparation of correspondence to claimant advising outcome of adjudication
Dividend procedures Preparation of correspondence to creditors advising of intention to declare dividend
Advertisement of intention to declare dividend
Obtain clearance from ATO to allow distribution of company’s assets
Preparation of dividend calculation
Preparation of correspondence to creditors announcing declaration of dividend
Advertise announcement of dividend
Preparation of distribution
Preparation of dividend file
Preparation of correspondence to creditors enclosing payment of dividend
Administration
$3,000
Document maintenance/file review/checklist
First month, then six monthly administration reviews
Filing of documents
File reviews
Updating checklists
Remuneration Approval Report 16
Task Area General Description Includes
Insurance Identification of potential issues requiring attention of insurance specialists
Reviewing insurance policies
Renewal of insurance policies if required
Correspondence with previous brokers
Bank account administration Preparing correspondence opening and closing accounts
Requesting bank statements
Bank account reconciliations
Correspondence with bank regarding specific transfers
ASIC Form 524 and other forms Preparing and lodging ASIC forms including 505, 524, 533
Correspondence with ASIC regarding statutory forms
ATO and other statutory reporting
Notification of appointment
Preparing BAS
Completing group certificates
Finalisation Notifying ATO of finalisation
Cancelling ABN / GST / PAYG registration
Completing checklists
Planning / Review Discussions regarding status of administration
Books and records / storage Dealing with records in storage
Sending job files to storage
Total
$25,000
Statutory Report to Creditors 16
Proposals without a meeting
Appendix F
#3163597v1
20 May 2020
NOTICE OF PROPOSAL TO CREDITORS
ACN 114 920 311 Pty Ltd (In Liquidation)
(Formerly Bullzye Pty Ltd) ACN 114 920 311 (“the Company”)
Proposal for creditor approval – Resolution 1
“That the remuneration of the Joint and Several Liquidators, their partners and staff, for the period from appointment to 17 May
2020, calculated at the hours spent at the rates detailed in the Initial Remuneration Notice provided to creditors, is approved
for payment in the amount of $83,821.00, exclusive of GST, to be drawn from available funds immediately or as funds become
available.”
Reasons for the proposal and the likely impact it will have on creditors if it is passed
The proposal is being put to creditors to approve remuneration as allowed under law. The proposal if passed will minimise the cost of approving remuneration to the Creditors Voluntary Liquidation, which would otherwise require a meeting of creditors or court application to be approved – which can be costly. Remuneration of the liquidators is to be paid in priority to other claims under the Corporations Act. This ensures that when there are sufficient funds, the liquidators receive payment for the work done to recover assets, investigate the Company’s affairs, report to creditors and ASIC and distribute any available funds. Even if creditors approve our remuneration, this does not guarantee that we will be paid, as we are only paid if sufficient assets are recovered. If sufficient assets are recovered, there may be funds available to pay a dividend to creditors, however this is affected by many variables including the value of assets and complexity of realising those assets, the level of creditors enquiries, the priority of claims (including employee claims) and the total value of creditor claims to be admitted to participate in a dividend. My remuneration approval report, which has been provided with this notice provides more detailed information on remuneration I am seeking to be approved.
Vote on proposal
Creditors have the option of approving, not approving or objecting to the proposal being resolved without a meeting of
creditors. Please select the appropriate Yes, No or Object box referred to below:
Yes 󠆤 I approve the proposal
No 󠆤 I do not approve the proposal
Object 󠆤 I object to the proposal being resolved without a meeting of creditors
Your claim against the Company must be admitted for the purposes of voting by the Creditors Voluntary Liquidation for your
vote to count. Please select the option that applies:
󠆤 I have previously submitted a proof of debt form and supporting documents
󠆤 I have enclosed a proof of debt form and supporting documents with this proposal form
#3163597v1
Creditor details
Name of creditor: ACN / ABN (if applicable):
󠆤 I am not a related creditor of the Company.
󠆤 I am a related creditor of the Company, relationship: .
Address: __________________________________________________________________________________
Name of creditor / authorised person: __________________________________________________
Signature: _____________________________ Date:__________________________
Please complete this document and return with any supporting documents by no later than 17 June 2020 for your vote to be
counted, by email to Nathan Bleakley at [email protected]. If you have any questions please call +61 7 3222 0449.
Completed forms may also be sent by post attention to Nathan Bleakley at GPO Box 1008, Brisbane QLD 4001, although you should ensure
this is sent with sufficient time to arrive by the date the vote closes, which we cannot guarantee.
#3163597v1
20 May 2020
NOTICE OF PROPOSAL TO CREDITORS
ACN 114 920 311 Pty Ltd (In Liquidation)
(Formerly Bullzye Pty Ltd) ACN 114 920 311 (“the Company”)
Proposal for creditor approval
“That the future remuneration of the Joint and Several Liquidators for the period from 18 May 2020 to finalisation, is
determined at a sum equal to the cost of time spent by the Joint and Several Liquidators and their partners and staff,
calculated at the hourly rates as detailed in the Initial Remuneration Notice provided to creditors, that may be increased at a
rate of up to 5% at 1 July each year (rounded to the nearest $10), up to a capped amount of $25,000.00, exclusive of GST,
and that the Joint and Several Liquidators can draw the remuneration from available funds as time is incurred on a monthly
basis or as funds become available.”
Reasons for the proposal and the likely impact it will have on creditors if it is passed
The proposal is being put to creditors to approve remuneration as allowed under law. The proposal if passed will minimise the cost of approving remuneration to the Creditors Voluntary Liquidation, which would otherwise require a meeting of creditors or court application to be approved – which can be costly. Remuneration of the liquidators is to be paid in priority to other claims under the Corporations Act. This ensures that when there are sufficient funds, the liquidators receive payment for the work done to recover assets, investigate the Company’s affairs, report to creditors and ASIC and distribute any available funds. Even if creditors approve our remuneration, this does not guarantee that we will be paid, as we are only paid if sufficient assets are recovered. If sufficient assets are recovered, there may be funds available to pay a dividend to creditors, however this is affected by many variables including the value of assets and complexity of realising those assets, the level of creditors enquiries, the priority of claims (including employee claims) and the total value of creditor claims to be admitted to participate in a dividend. My remuneration approval report, which has been provided with this notice provides more detailed information on remuneration I am seeking to be approved.
Vote on proposal
Creditors have the option of approving, not approving or objecting to the proposal being resolved without a meeting of
creditors. Please select the appropriate Yes, No or Object box referred to below:
Yes 󠆤 I approve the proposal
No 󠆤 I do not approve the proposal
Object 󠆤 I object to the proposal being resolved without a meeting of creditors
Your claim against the Company must be admitted for the purposes of voting by the Creditors Voluntary Liquidation for your
vote to count. Please select the option that applies:
󠆤 I have previously submitted a proof of debt form and supporting documents
󠆤 I have enclosed a proof of debt form and supporting documents with this proposal form
#3163597v1
Creditor details
Name of creditor: ACN / ABN (if applicable):
󠆤 I am not a related creditor of the Company.
󠆤 I am a related creditor of the Company, relationship: .
Address: __________________________________________________________________________________
Name of creditor / authorised person: __________________________________________________
Signature: _____________________________ Date:__________________________
Please complete this document and return with any supporting documents by no later than 17 June 2020 for your vote to be
counted, by email to Nathan Bleakley at [email protected]. If you have any questions please call +61 7 3222 0449.
Completed forms may also be sent by post attention to Nathan Bleakley at GPO Box 1008, Brisbane QLD 4001, although you should ensure
this is sent with sufficient time to arrive by the date the vote closes, which we cannot guarantee.
#3163597v1
20 May 2020
NOTICE OF PROPOSAL TO CREDITORS
ACN 114 920 311 Pty Ltd (In Liquidation)
(Formerly Bullzye Pty Ltd) ACN 114 920 311 (“the Company”)
Proposal for creditor approval
“That the disbursements of the Joint and Several Liquidators, their partners and staff for the period 9 March 2020 to 17 May
2020 be approved for payment in the amount of $2,330.10 plus GST and that the Joint and Several Liquidators can draw the
disbursements immediately or as required.”
Reasons for the proposal and the likely impact it will have on creditors if it is passed
Disbursements have a priority to other claims under the Corporations Act. Certain internal disbursements, being the reimbursement of costs related to the Creditors Voluntary Liquidation incurred by my firm and stuff, must be approved by creditors under the law. These disbursements are charged on a reasonable commercial basis, the details of which are outlined in detail in my Remuneration Approval Report. The proposal if passed will allow the reimbursement of reasonably commercial expenses, properly incurred for the Creditors Voluntary Liquidation to my firm and its staff.
Vote on proposal
Creditors have the option of approving, not approving or objecting to the proposal being resolved without a meeting of
creditors. Please select the appropriate Yes, No or Object box referred to below:
Yes 󠆤 I approve the proposal
No 󠆤 I do not approve the proposal
Object 󠆤 I object to the proposal being resolved without a meeting of creditors
Your claim against the Company must be admitted for the purposes of voting by the Creditors Voluntary Liquidation for your
vote to count. Please select the option that applies:
󠆤 I have previously submitted a proof of debt form and supporting documents
󠆤 I have enclosed a proof of debt form and supporting documents with this proposal form
Creditor details
Name of creditor: ACN / ABN (if applicable):
󠆤 I am not a related creditor of the Company.
󠆤 I am a related creditor of the Company, relationship: .
Address: __________________________________________________________________________________
Name of creditor / authorised person: __________________________________________________
Signature: _____________________________ Date:__________________________
#3163597v1
Please complete this document and return with any supporting documents by no later than 17 June 2020 for your vote to be
counted, by email to Nathan Bleakley at [email protected]. If you have any questions please call +61 7 3222 0449.
Completed forms may also be sent by post attention to Nathan Bleakley at GPO Box 1008, Brisbane QLD 4001, although you should ensure
this is sent with sufficient time to arrive by the date the vote closes, which we cannot guarantee.
#3163597v1
20 May 2020
NOTICE OF PROPOSAL TO CREDITORS
ACN 114 920 311 Pty Ltd (In Liquidation)
(Formerly Bullzye Pty Ltd) ACN 114 920 311 (“the Company”)
Proposal for creditor approval
“That the future disbursements of the Joint and Several Liquidators, their partners and staff for the period 18 May 2020 to
finalisation of the liquidation be approved as per the schedule of costs below, to a capped amount of $1,000.00 plus GST and
that the Liquidator can draw the disbursements immediately or as required.”
Internal disbursements Rate (Excl GST)
Courier At Cost
Postage (large) $2.11 / letter
Postage (small) $1.06 / letter
Fax (interstate) $2.00 / page
Fax (local) $1.00 / page
Staff vehicle use $0.66 / km
Rates applicable for financial year ending 30 June 2020
Reasons for the proposal and the likely impact it will have on creditors if it is passed
Disbursements have a priority to other claims under the Corporations Act. Certain internal disbursements, being the reimbursement of costs related to the Creditors Voluntary Liquidation incurred by my firm and stuff, must be approved by creditors under the law. These disbursements are charged on a reasonable commercial basis, the details of which are outlined in detail in my Remuneration Approval Report. The proposal if passed will allow the reimbursement of reasonably commercial expenses, properly incurred for the Creditors Voluntary Liquidation to my firm and its staff.
Vote on proposal
Creditors have the option of approving, not approving or objecting to the proposal being resolved without a meeting of
creditors. Please select the appropriate Yes, No or Object box referred to below:
Yes 󠆤 I approve the proposal
No 󠆤 I do not approve the proposal
Object 󠆤 I object to the proposal being resolved without a meeting of creditors
Your claim against the Company must be admitted for the purposes of voting by the Creditors Voluntary Liquidation for your
vote to count. Please select the option that applies:
󠆤 I have previously submitted a proof of debt form and supporting documents
󠆤 I have enclosed a proof of debt form and supporting documents with this proposal form
#3163597v1
Creditor details
Name of creditor: ACN / ABN (if applicable):
󠆤 I am not a related creditor of the Company.
󠆤 I am a related creditor of the Company, relationship: .
Address: __________________________________________________________________________________
Name of creditor / authorised person: __________________________________________________
Signature: _____________________________ Date:__________________________
Please complete this document and return with any supporting documents by no later than 17 June 2020 for your vote to be
counted, by email to Nathan Bleakley at [email protected]. If you have any questions please call +61 7 3222 0449.
Completed forms may also be sent by post attention to Nathan Bleakley at GPO Box 1008, Brisbane QLD 4001, although you should ensure
this is sent with sufficient time to arrive by the date the vote closes, which we cannot guarantee.
13 May 2020
#3163597v1
NOTICE OF PROPOSAL TO CREDITORS
ACN 114 920 311 Pty Ltd (In Liquidation)
(Formerly Bullzye Pty Ltd) ACN 114 920 311 (“the Company”)
Proposal for creditor approval
“That the creditors direct the Joint and Several Liquidators to apply to ASIC when appropriate or upon finalisation of the
liquidation for consent to destroy books within the retention period in accordance with IPS 70-35.”
Reasons for the proposal and the likely impact it will have on creditors if it is passed
The proposal is being put to creditors to allow records to be destroyed upon finalisation of the liquidation, with ASIC consent. Liquidators are otherwise required to maintain all books for 5 years which represents a significant cost to the liquidation. By passing the proposal, and subject to ASIC’s consent, much of this cost can be avoided. The Liquidator will still retain information, and notably financial information, required to be retained for certain periods under other laws, e.g. taxation laws.
Vote on proposal
Creditors have the option of approving, not approving or objecting to the proposal being resolved without a meeting of
creditors. Please select the appropriate Yes, No or Object box referred to below:
Yes 󠆤 I approve the proposal
No 󠆤 I do not approve the proposal
Object 󠆤 I object to the proposal being resolved without a meeting of creditors
Your claim against the Company must be admitted for the purposes of voting by the Creditors Voluntary Liquidation for your
vote to count. Please select the option that applies:
󠆤 I have previously submitted a proof of debt form and supporting documents
󠆤 I have enclosed a proof of debt form and supporting documents with this proposal form
Creditor details
Name of creditor: ACN / ABN (if applicable):
󠆤 I am not a related creditor of the Company.
󠆤 I am a related creditor of the Company, relationship: .
Address: __________________________________________________________________________________
Name of creditor / authorised person: __________________________________________________
Signature: _____________________________ Date:__________________________
Please complete this document and return with any supporting documents by no later than 17 June 2020 for your vote to be
counted, by email to Nathan Bleakley at [email protected]. If you have any questions please call +61 7 3222 0449.
Completed forms may also be sent by post attention to Nathan Bleakley at GPO Box 1008, Brisbane QLD 4001, although you should ensure
this is sent with sufficient time to arrive by the date the vote closes, which we cannot guarantee.
Statutory Report to Creditors 17
Proof of Debt
Appendix G
FORM 535 subregulation 5.6.49(2)
Corporations Act 2001
FORMAL PROOF OF DEBT OR CLAIM (GENERAL FORM)
To the Liquidators of Bullzye Pty Ltd (In Liquidation) ACN 114920311 (the “Company”)
1. This is to state that the company was on 9 March 2020, and still is, justly and truly indebted to:
full name, ABN
and address of the creditor and, if applicable, the creditor's partners. If prepared by an employee or agent of the creditor, also insert a
description of the occupation of the creditor) for dollars and cents
Particulars of the debt are:
Date Consideration Amount Remarks (state how the debt arose) $ (include details of voucher substantiating payment)
2. To my knowledge or belief the creditor has not, nor has any person by the creditor's order, had or
received any satisfaction or security for the sum or any part of it except for the following:
(insert particulars of all securities held. If the securities are on the property of the company, assess the value of those securities. If any bills
or other negotiable securities are held, show them in a schedule in the following form).
Date Drawer Acceptor Amount Due Date $
3. Signed by (select option):
󠆤 I am the creditor personally.
󠆤
I am employed by the creditor and authorised in writing by the creditor to make this statement. I know that the debt was incurred for the consideration stated and that the debt, to the best of my knowledge and belief, remains unpaid and unsatisfied.
󠆤
I am the creditor's agent authorised in writing to make this statement in writing. I know the debt was incurred for the consideration stated and that the debt, to the best of my knowledge and belief, remains unpaid and unsatisfied.
Signature: Dated:
Name: Occupation:
Address:
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