Overview
Mai Land Pty Ltd was the owner of an entire block of 7 residential units in Western Sydney. Olvera Advisors was appointed as Liquidators of the company pursuant to an Order of the Federal Court on the petition of a statutory creditor. As liquidators, we managed the realisation of assets and addressed complex creditor claim disputes.
Challenges
- Court-Appointed Liquidation: The appointment arose from a Federal Court order, requiring strict compliance with statutory obligations and timelines.
- Complex Creditor Claims: The liquidation involved navigating multiple claim disputes, including double proofs and equitable entitlement issues.
- Historic Financial Reconstruction: To establish the capital gains tax (CGT) base, our team undertook a detailed financial analysis and recreation of financial accounts spanning a 10-year period.
Turnaround Plan
Led by our Principal, Kate Barnet, the liquidation strategy centred on maximising the sale value of the property and resolving outstanding claims efficiently.
We undertook key actions such as the sale of the seven-unit development at 28 Wilson Street, strategic financial reconstruction to substantiate tax positions, and careful adjudication of competing creditor claims.
Results
The sale of the development exceeded all expectations, achieving $1.5 million above reserve. This enabled a full recovery for the secured creditor and a substantial $2.18 million distribution to unsecured creditors, resulting in a greater than 50% return to creditors.
Key Drivers of Success
- Experienced leadership by Kate Barnet, a registered liquidator with deep technical expertise.
- Strategic asset sale process that capitalised on market conditions.
- Rigorous financial reconstruction to support accurate and defensible outcomes.
- Transparent communication and fair adjudication among creditors.
Key Takeaway
This case study demonstrates Olvera’s disciplined and strategic liquidation process. We delivered results far exceeding expectations and managed a complex court-appointed engagement to deliver a strong financial outcome for both secured and unsecured creditors.
