On 25 November 2024, the Administrators issued a report to creditors of KAM on KAM’s business, property, financial circumstances, and on the alternative future options available. This report also included a notice of meeting of creditors of KAM to be held on 2 December 2024.
The report disclosed that the Administrators had received three proposals to enter into an arrangement with KAM to avoid liquidation (generally referred to as DOCA Proposals). One of these proposals being from Mr Paul Chiodo was not progressed due to his confidentiality requirements and a supplementary report would be issued to creditors detailing DOCA proposal from Mr Roberto Filippini. The Administrators recommended against the DOCA Proposals on the basis that they were not in the best interests of creditors or SMF investors and set out their reasons for that opinion.
Following the release of the report to creditors, the Administrators received two further DOCA Proposals. The Administrators issued further reports to creditors on 27 November 2024 detailing the DOCA proposal from Mr Roberto Filippini and 30 November 2024 details a DOCA proposal received on 29 November 2024 from Newcoshield Pty Ltd. These reports informed creditors of the DOCA Proposals and set out the Administrators’ recommendation against these further DOCA Proposals on the basis that they were not in the best interests of creditors or SMF investors. Again, the reports set out the reasons for that recommendation.
We encourage creditors and investors to read these reports to understand the reasons for the administrators’ recommendation. In short, each DOCA Proposal involved creditors and SMF investors giving up on significant claims and assets at a very low rate of return and/or progressing risky and/or uncertain investments.
Copies of these reports are available on our dedicated website (see link below) under the heading ‘Notices & Court Documents’.
At the second meeting of creditors for KAM held on 2 December 2024, creditors ultimately resolved that the Company be wound up and Jason Tracy and Glen Kanevsky of Deloitte be appointed Joint and Several Liquidators.
In our role as liquidators, the scope of our role includes:
- protect, collect and sell the Company’s assets
- conduct further investigations and report to creditors about the Company’s affairs, including voidable transactions that may be recoverable for the benefit of creditors
- conduct further investigation and report to creditors about offences committed by past or present Directors of the Company.
- distribute money from the collection and sale of assets after payment of the costs of the liquidation to the creditors of the Company.
We note that, under the Corporations Act 2001 (Cth), a liquidator is provided with investigative powers to assist in identifying and recovering assets for the benefit of creditors, including powers to conduct public examinations where required to obtain information required for the purpose of their investigations.
The findings of our investigations will also be reported to ASIC.
A guide for creditors in a liquidation prepared by ASIC is available here.
