Having spent the last decade as an insolvency and advisory practitioner across personal and corporate matters, Gyan brings significant experience to her work, striving to build strong relationships with all stakeholders to ensure a smooth and successful resolution. Her expertise spans industries, including property, hospitality, and finance.
In recent years, she has specialised in corporate appointments, assisting with and managing various insolvency matters to support directors, employees and creditors affected by financial difficulties .
Along with managing various trading businesses and assets realisation, Gyan’s key focus has been conducting complex investigations into a company’s prior financial affairs, including detailed insolvency analysis, director misconduct and offences under the Corporations Act and the recovery of antecedent transactions.
VA appointment over a financial planning dealer group, which provided licencing and dealer group services to advisers, including the payment of their brokerage fees. The brokerage fees generated by adviser activities were paid to the Company on the understanding that it would be distributed to the relevant financial adviser providing the underlying services to clients. However, because of our appointment, there was a legal entitlement dispute over the funds between the advisers and the major secured creditor. At the time of appointment, over $1M was held in the relevant bank account, with further payments being deposited by advisers who had yet to finalise their transition from the Company.
Due to the complexity of the agreements and documents underlying the account arrangement, Court directions were sought to determine the beneficial rights over funds in the account. This involved working closely with our legal representatives and all other stakeholders, including employees, advisers, and creditors, to make comprehensive submissions to the Court regarding the nature of the funds.
At the same time, efforts continued to complete the transition of advisers to minimise the impact on their future earnings (cease ongoing payments to the subject account).
The Court ultimately decided that the funds were not held in trust for the advisers. Accordingly, funds deposited after the date of appointment were collected for distribution in accordance with the priorities as set out in Section 556 of the Corporations Act 2001—this enabled payment of c$0.80/$1 dividend for priority employee entitlement owed of c$944k.
The Company received a monthly income of approximately $350k/month from Funds Under Management (FUM) of c$1b at the time of appointment.
As a result of complex legal arrangements between the Company, its related party lender and its associated adviser shareholders, there were competing claims against the income stream.
A DOCA was proposed to preserve the income stream while the agreements, share structure and dispute were reviewed. This involved high-level forecasting and analysis of contributions and future income streams, as well as negotiation with key stakeholders and our legal advisers to come to a distribution settlement that balanced the interests and risks of the different groups. This also included negotiation for a lump sum settlement relating to the income stream, which had been terminated (under dispute).
The payments under the agreements also presented an income tax issue concerning the group structure and income tax liability. A tax office determination was sought with our tax advisers to ensure compliance and correct treatment of the Company’s assessable income and deductibles.
We negotiated a satisfactory settlement arrangement with the key stakeholders via a DOCA, without seeking Court directions. The result of the DOCA was a 100% return to ordinary, unsecured creditors, a return of $5M gross collections to adviser-shareholders and a substantial return to a major lender (being a substantial portion of its principal debt). Negotiating the lump sum settlement for the income stream also provided surety of return to the stakeholders.
We were appointed by a major lender over two entities that held various parcels of land with multi-purpose development opportunities. The hotel pub sat on part of the development site, and the entities also traded several bottle shops. The hotel pub was trading very poorly but ultimately held value for the potential purchasers of the development site, and its ongoing trade was necessary to achieve the best result. Despite interest in the development site, there were substantial risks, and it was not attracting suitable offers/potential purchasers.
Continued trading all businesses over an extended period, working closely with staff and management to stabilise and engage new initiatives to minimise losses and preserve asset value. Significant work to finding the best business management and sale strategy to maximise recovery, including considering alternative sale methods and uses. Undertook analysis of various offers and negotiations with parties to identify the most beneficial outcome for all stakeholders.
Achieved sale of all assets, including the separate sale of the bottle shop businesses and the development site under vendor finance arrangements, and allowed a significant return to the appointor.