1 / 29

Meeting of Investors Heritage Fine Wines Pty Ltd In Liquidation Receiver and Manager Appointed

Heritage Fine Wines. Chairman introduction and confirmationAll attendees to sign Attendance registerTabling of Proxy Register. CROUCH INSOLVENCYCHARTERED ACCOUNTANTS . Heritage Fine Wines. Agenda:Consider report on progress of receivershipReceive information from investorsReceive summary o

adina
Download Presentation

Meeting of Investors Heritage Fine Wines Pty Ltd In Liquidation Receiver and Manager Appointed

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1. Meeting of Investors Heritage Fine Wines Pty Ltd (In Liquidation) (Receiver and Manager Appointed) Sydney Masonic Centre 28 July 2005

    2. Heritage Fine Wines Chairman introduction and confirmation All attendees to sign Attendance register Tabling of Proxy Register

    3. Heritage Fine Wines Agenda: Consider report on progress of receivership Receive information from investors Receive summary of costs and expenses Consider formal resolutions (9) General discussion

    4. Heritage Fine Wines Overview 1,562,000 bottles sold to investors Shortfall of 289,362 bottles Cost to investors: $68.9m Cost to Heritage: $35.7m Warehouse system did not permit cumulative totals for investor, wine label, location, quantity

    5. Heritage Fine Wines 2008 labels appear in Heritage records 165 labels exactly in balance 690 labels in balance (+/- 6 bottles) We have identified: 158 “new” labels 254 unnumbered pallets barcodes attached to a small % of bulk wine inconsistent stock descriptions Warehouse system did not reconcile to sales system.

    6. Heritage Fine Wines Complications: Possible competing claims for same stock Restrictions on reporting capabilities Incomplete recording of stock movements Lack of systems integration

    7. Heritage Fine Wines Relocation of Alexandria stock: Moved to: BAM Wine Logistics, 11-21 Forge Street, Blacktown.

    8. Heritage Fine Wines

    9. Heritage Fine Wines

    10. Heritage Fine Wines Progress of reconciliation and stocktake: Database population Stocktake Wine label coding Virtual warehouse creation “Earmarking” by bottle Reconciliation process Estimated completion date

    11. Heritage Fine Wines Progress of investigations: Reviewed 172 boxes of books and records Difficulties re. access to computer records Interviewed Directors/Officers

    12. Heritage Fine Wines Did HFW disclose to investors gross profit margin? Total Sales $68,900,986 Cost of Goods Sold $35,678,986 Gross Profit $33,221,274 Did HFW guarantee returns on wine investments?

    13. Heritage Fine Wines Did HFW provide financial advice? Should HFW’s business have been registered as a Managed Investment Scheme?

    14. Heritage Fine Wines The potential remedies available include: Common Law Damages Civil Liability Provisions – Corporations Act / Trade Practices Act Offences

    15. Heritage Fine Wines Next steps in the investigation: Resolution of Investors Developing Legal Case Brief to Counsel Report to Investors

    16. Heritage Fine Wines Former administrator /liquidator (Peter Ngan) Status of Ngan position Liens Charged asset security Assistance to Crouch Claim for remuneration Impact on levy

    17. Heritage Fine Wines Frequently asked questions: Actions of prior liquidator? Status and rights of secured creditor? Assistance from Directors/Former Directors? Reasons for failure? Potential offences?

    18. Heritage Fine Wines Frequently asked questions (continued): Insurance options? Private wine holdings? Wine held at wineries?

    19. Heritage Fine Wines Information from Investors, examples to date: Wine offer accepted and payment made / no confirmation of ownership received. Wine sale authorisation provided / no proceeds of sale received. Any other info?

    20. Heritage Fine Wines

    21. Heritage Fine Wines Resolution A: ‘That a levy be imposed on investors up to an amount of $2.20 per bottle (inclusive of GST) to discharge receivership costs.’

    22. Heritage Fine Wines Resolution B: ‘That, in the event the First levy minimum subscription of $968,490 is not paid by the due date of 4 August 2005, the Receiver and Manager may sell investor wine to discharge receivership costs.’

    23. Heritage Fine Wines Resolution C: ‘That, in the event that the First levy minimum subscription of $968,490 is paid but some levies remain unpaid, the Receiver and Manager may recover the unpaid levies by selling wine belonging to the investors who did not pay the First levy by the due date of 4 August 2005.’

    24. Heritage Fine Wines Resolution D: ‘That the Receiver and Manager’s fees for the period 16 May 2005 to 30 June 2005 in the amount of $297,824 (inclusive of GST) be approved and paid.’

    25. Heritage Fine Wines Resolution E: ‘That the Receiver and Manager’s fees for the period 1 July 2005 to 28 July 2005 in the amount of or about $225,356 (inclusive of GST) be approved and paid.’

    26. Heritage Fine Wines Resolution F: ‘That the fees and expenses incurred in preserving, securing and maintaining the investor wine by Nicholas Crouch in his capacity as Liquidator for the period 4 May 2005 to 16 May 2005 in an amount of $88,021.40 (inclusive of GST) be approved and paid as a cost of the receivership.’

    27. Heritage Fine Wines Resolution G: ‘That a Committee of Investors be formed to represent the general body of Investors in future dealings with the Receiver and Manager and that this Committee shall have similar powers to those of a Committee of Inspection in a company liquidation.’

    28. Heritage Fine Wines Resolution H (new resolution): That the Receiver and Manager be authorised to conduct investigations into the conduct of the Company, its Directors and Officers and that the Receiver and Manager be authorised to incur future fees and legal costs and disbursements in the amount of up to $95,000 (plus GST) in respect of the conduct of such investigations, such sum to be paid from the levy proceeds.”

    29. Heritage Fine Wines Resolution I (new resolution): ‘That the fees and expenses incurred in preserving, securing and maintaining the investor wine by Peter Ngan in his capacity as Administrator for the period 8 March 2005 to 5 April 2005 in the amount of $60,743.60 (inclusive of GST) and in his capacity as Liquidator for the period 5 April 2005 to 4 May 2005 in the amount of $72,391.70 (inclusive of GST) (Total $133,135.30) be approved and paid as a cost of the receivership.’

    30. Heritage Fine Wines General Discussion Meeting closure

More Related