HOME – Financial Services

Financial Services

Australia’s four pillar bank network has provided incredible stability for the Australian economy, while the economic boom and low interest rates over the past 10 years has led to more competition and the rise of non-bank lenders.

Despite being highly regulated, the Australian financial services sector has a history of insolvencies, particularly during periods of market volatility.

The result has been the development of new trade finance providers, non-bank mortgages and retail finance providers including BNPL.

Key Challenges

Australia’s open banking platform and traditional four pillar banking system has created one of the most stable regulated banking payments systems in the world. What we lack in scale is made up for in our ability to create new and unique payment programmes, which make us market leaders. This is not without its challenges. The BNPL sector grew on the back of consumer demand in the past few year but has now seen a rapid decline as interest and inflation risk create consumer uncertainty.
The financial planning market which saw consolidation into the main banks to cross sell products has resulted in sales and demergers in the wake of the Banking Royal Commission, weighing on net interest margins and causing industry profit margins to fall over the past five years.
Business confidence, consumer sentiment, residential property market conditions and global growth prospects will likely dictate the financial services industry’s performance. Overall, the industry’s outlook is forecast to be positive over the next five years, with industry revenue forecast to grow at an annualised 7.8% over the next five years through 2026-27, to $269.5 billion.

Our Experience

Olvera principals have worked on a number of high profile financial restructures, including the solvent wind down of Babcock & Brown, the first Deed of Company Arrangement on Lehmans Australia and the acquisition of securities brokerage

Our affiliate Olvera Capital is an authorised representative under AFSL 519985 to provide general advice and debt advisory.

Key Insight

Loading...

March 20, 2024

Resolving board room challenges and the issues of Independence & governance

Major Shareholder Control At the outset I will indicate my bias in favor of controlling shareholders, in my view, their interests are aligned with the long term objectives of the company, the issue is how...

Case Studies

Olvera principals were appointed as Liquidators by the Court to wind up the responsible entity for a mortgage fund The Summit Mortgage Fund

that raised funds to fund property-backed secured commercial loans. The total loan portfolio had a book value of over $100mill on the date of the appointment as liquidators. Our role was to undertake a realisation strategy for each of the loans in the portfolio, many of the underlying security properties were partly completed and in some cases construction building work had stopped some years ago due to the lack of funding.

As Liquidators, we commenced actions concerning negligence claims against valuers on eight loans. We successfully commenced claims for indemnity in relation to capital insurance. As a result of the above actions, approximately $20mill has been returned to creditors.

Olvera executives were engaged as Corporate Advisors to the board and senior management on working capital head room

including the consolidation of cash from subsidiaries to central treasury functions. Olvera executives worked to maximise cash for covenant testing after the company share price fell by more than 25% resulting in a technical breach of facilities.

Recognising the fundamental role of cash culture within a business results in a more effective application of free cash, lower administrative costs, reduced borrowing needs and improved investment performance overall.

Olvera principals worked closely with the board, management and treasury teams to ensure cash forecasting and management methodologies are tailored to each individual business situation.

BBY Limited was the largest independent brokerage house in Australia and New Zealand until its collapse in 2015.

Olvera acted as adviser to AIMS Group who acquired the residual business of BBY through direct purchase and through a number of deeds of company arrangement which allowed AIMS to maintain the companies AFSL. The acquisition allowed AIMS to grow its consumer client base by 30,000 active clients.

Olvera principals were appointed as Liquidators to 14 companies in the Octaviar Group.

The group consisted of 100 companies. The Group operated a vast array of businesses that ranged from property funds, corporate finance lending, child care centres, aged care facilities, funds management, ski and holiday resorts, travel, tourism and hotels. These groups businesses were predominantly in Australia but there were also notable interests in New Zealand investment schemes and investment and advisory services in Dubai. Creditors were in excess of $1.5billion. Investigations were hampered by the complexity of the group – there were over 400 entities and intercompany loans totalled over $500m. The loans were convoluted and documentation largely unsubstantiated. Investigations included approximately 60 days of public examinations of key executives, personnel and advisers. It also involved reviewing and investigating a significant volume of documentary material including: Investigations focused on the following complex litigation issues:

Kate Barnet

PRINCIPAL

Kate develops strategic solutions for groups dealing in crisis management and/or distress investment. She has over 30 years of experience working with distressed companies in the financial assessment, recoverability, and sustainability of risk assets.

MEET OUR TEAM

Olvera Advisors

Kate Barnet

PRINCIPAL

Kate Barnet is a recognised leader in the insolvency and reconstruction industry.

Damien Hodgkinson

PRINCIPAL

Damien develops strategic solutions for groups dealing in crisis management and/or distress investment.

Mirzan Mansoor

PRINCIPAL

Mirzan has in excess of 13 years of experience across restructuring and turnaround, corporate finance, mergers and acquisitions and corporate banking in Australia and in Singapore

Michael Billingsley

PRINCIPAL

Michael offers Olvera Advisors over two decades of international restructuring expertise, adept at innovatively supporting diverse businesses, from small firms to listed companies.

Tony Wright

PRINCIPAL

Tony contributes 15 years of insolvency experience to Olvera Advisors, with diverse industry expertise and a unique background in ASIC’s Enforcement Division.

Neil Cussen

PRINCIPAL

Neil Cussen, a leading authority in insolvency and reconstruction, offers 35 years of experience, excelling in asset tracing, business recovery, and cross-border insolvencies.

Robyn Karam

PRINCIPAL

Robyn’s inclusion in the Olvera team brings an added 15 years of expertise in corporate reconstruction, insolvency, and forensics.

Diana Talevski

DIRECTOR

Diana Talevski is a dedicated and experienced Registered Trustee in Bankruptcy, specialising in the dynamic field of restructuring.

Our Services

Restructuring & Turnaround

Our Experience

Consumer Services

Insolvency & Restructuring in the Consumer Services Industry in 2024

Celebrating olvera's achievements over the past 2 years

Ellery

Ellery is a luxury Australian fashion brand with design offices in Paris and Milan and production facilities in Sydney.

When Should My Business Consider Voluntary Administration?

Olvera Advisors Begins 9-Day Fortnight For Employees

Financial Services

Despite being highly regulated, the Australian financial services sector has a history of insolvencies, particularly during periods of market volatility.

Key Challenges

Our Experience

Key Insight

Resolving board room challenges and the issues of Independence & governance

Case Studies

OUR CLIENT

JOB TYPE

DATE

Practitioner

Kate Barnet

Olvera Advisors

PRINCIPAL

PRINCIPAL

PRINCIPAL

PRINCIPAL

PRINCIPAL

PRINCIPAL

PRINCIPAL

DIRECTOR

Subscribe to receive our research updates

Navigate change and develop on-demand skills

Menu

Legal

Contact