Restructuring and Insolvency

Lehman Brothers: The abrupt demise of the Lehman Brothers investment bank in September 2008 (the largest corporate collapse in US history) sparked the biggest shake-up on Wall Street in decades with global share markets falling sharply as a result of the financial turmoil.

Clayton Utz was appointed to act for the voluntary administrators of the Lehman Brothers Australia Group, now the liquidators.

Clayton Utz advised on and assisted in drafting a ground breaking international protocol agreement between the various Lehman Brothers "official receivers" in 16 countries, involving over 80 insolvency proceedings. Sanctioned by the US Bankruptcy Court, the agreement allows official receivers to co-operate to access each others' records and information, thereby preserving asset values across multiple jurisdictions.

ABC Learning Centres: When Australia's largest provider of childcare services collapsed in 2008, it owned more than 1,100 childcare centres and had more than 16,000 employees in Australia, plus a further 1,100 centres in New Zealand and the United States. The collapse affected a far broader cross section of society than the usual stake holders in an insolvency. Some 95,000 Australian families of the 120,000 children enrolled in ABC centres were faced with the possible overnight loss of childcare facilities. The level of public anxiety was captured in the enormous level of media coverage of the collapse, with renewed calls for greater regulation in the market. Responding to the level of public concern, the Commonwealth Government unveiled an innovative rescue package designed to avert the (otherwise imminent) closure of ABC's 262 most unprofitable centres (the "ABC2" centres).

Clayton Utz advised both the Commonwealth of Australia and its Court-appointed receivers in relation to the Commonwealth's high-profile rescue package for the ABC centres.

The following statistics offer an indication of how hugely successful the resolution of this matter has been:

• winner of the ALB Australasian Law Award for "Insolvency and Restructuring Deal of the Year" (2010);
• approximately 90% of the ABC2 childcare centres were sold to new operators including a number of "not-for-profit" operators;
• continuity of childcare services was maintained for over 13,000 children enrolled in ABC2 childcare centres; and
• continuity of employment was achieved for approximately 89% of employees employed in ABC2 childcare centres.
  

Shadow directors: Clayton Utz acted in the important 2010 case of Buzzle Operations Pty Limited (In liquidation) v Apple Computer Australia Pty Limited & Ors [2010] NSWSC 233. The decision of the Supreme Court of NSW gives investigative accountants, creditors and financial institutions with insolvent corporate clients important guidelines on how far they can go in providing assistance and instructions with respect to the management of the business of a company.

Trio Capital: The collapse of Trio has generated enormous concern on the part of investors and financial advisers given the amount of superannuation funds which it managed - $300 million.

Clayton Utz' insolvency, corporate and financial services teams have advised and continue to advise the acting trustee on issues arising under corporations, superannuation and trustee legislation.

Rewards and Ark: Clayton Utz is acting for the receivers and managers appointed by the principal secured creditor to the Rewards Group and The Ark Fund Limited, the former operating tropical fruits and timber managed investment schemes throughout Australia, the latter a large ASX listed landholding entity.

Rubicon: Clayton Utz acts for the former voluntary administrators, now liquidators, of Rubicon Asset Management Limited (In Liquidation). The size, geographical spread and the complexity of this matter makes it one of the most significant insolvency administrations currently on foot in Australia.

Storm Financial Limited: We represented the receivers and managers of Storm Financial Group which has approximately $90 million in creditors.

Australian Zircon Group: A multi-disciplinary financing and corporate team at Clayton Utz acted in the restructuring out of administration of this group of companies, which undertake mineral sands exploration, extraction and processing operations in Victoria, South Australia and Western Australia. In all, $100m of debt was dealt with across a range of complex instruments.