We were appointed as voluntary administrators and later liquidators of Acquire Learning, a vocational education student broking and Registered Training Organisation (RTO) group that, at its peak, generated revenues of approximately $130 million and held secured debt of around $40 million.
At its peak, this vocational education student brokerage and Registered Training Organisation (RTO) group generated revenues of around $130 million and held secured debt of approximately $40 million. After successfully divesting the group’s assets, we conducted a full investigation, including a thorough forensic analysis of the group’s records, and public examinations, identifying numerous potential breaches of directors’ duties along with claims related to directorial responsibilities.
The debts across the three entities in liquidation exceeded about $40 million (excluding intercompany loans). Minimal tangible assets were available, and a complex shareholder trust structure complicated the situation regarding significant shareholder loans.
Following the divestment of the group’s assets, our extensive investigations involved:
Our ongoing investigations identified several potential breaches of director duties. These included the payment of bonuses to the directors and key management, the declaration of dividends to offset required repayment of shareholder loans, the advancement of funds and subsequent divestment of investments to related parties, in addition to insolvent trading.
After compiling sufficient evidence to substantiate these claims, in addition to collaborating with the Government to support recovery proceedings, we reached a settlement with the directors and associated entities. This outcome ensured payment of outstanding wages and unpaid superannuation contributions to employees.