statutory report by liquidator · mackay, toowoomba and townsville. the company operated a country...

#3109327v1

Statutory Report by Liquidator ACN 114 920 311 PTY LTD (IN LIQUIDATION) (FORMERLY BULLZYE PTY LTD) ACN 114 920 311 (the Company)

20 May 2020

Cameron Crichton

Joint and Several Liquidator

T (07) 3222 0449

E [email protected]

Graham Robert Killer


T (07) 3222 0449

E [email protected]

Statutory Report to Creditors 2

Introduction

We refer to our initial correspondence to creditors dated 17 March 2020 in which I advised you of our

appointment as Joint and Several Liquidators on 9 March 2020 and your rights as a creditor in the liquidation.

The purpose of this report is to:

Provide you with an update on the progress of the liquidation;

Provide you with an estimate of the assets and liabilities of the Company;

Provide you with a summary of the trading activities of the Company during the liquidation;

Brief you on the investigations undertaken and further inquiries that need to be undertaken;

Advise you of likely recovery actions; and

Advise you of the likelihood and timing of dividends being paid to different classes of creditors in the

liquidation.

We will also be requesting that you consider our detailed remuneration report and pass resolutions to approve

our remuneration.

The Joint and Several Liquidators have relied on information provided from numerous sources to prepare the

report, including:

Discussions with Gerard Kraatz and Aaron Owens (the Directors) of the Company;

The Reports on Company Affairs and Property provided by the Directors;

Discussions with the Secured Creditors of the Company;

Information available from public sources, such as, Australian Securities and Investments Commission

(ASIC), the Queensland Department of Transport (“TMR”), and Intellectual Property Australia;

A review of the Company's books and records provided to date.

While we have no reason to doubt the accuracy of any information, we have not performed an audit and

reserve the right to alter our conclusions, should the underlying data prove to be inaccurate or change

materially from the date of appointment.

Company Background

Company Affairs

The Company was incorporated on 23 June 2005. The head office operated from a leased premises at Unit 2,

15 Terrace Place, Murarrie, Queensland, and five retail stores were located in Bundaberg, Rockhampton,

Mackay, Toowoomba and Townsville.

The Company operated a country clothing and accessory retail business, selling both online and in the physical

retail stores, selling products such as workwear, gearbags and mudflaps. The Company would also attend

various events and exhibitions each year to further market the business.

We understand the Directors were responsible for the strategic management of the Company and business

operations, with 24 casual and full-time staff undertaking the day to day tasks associated with running the

business.

At the time of this report, all books and records of the Company have been made available to us.

Aaron Owens is the director of one other Company, Aaron Owens Pty Ltd. Our searches indicate that the

Directors have not been associated with any other failed Companies.


We were appointed by the Directors and Shareholders of the Company as liquidator on 9 March 2020 while the

Company continued to trade. We continued to trade the Company under a Creditors Voluntary Liquidation.

Cause of the Company’s Failure

The Directors have stated the reason for the Company’s financial difficulties included:

Poor economic conditions;

The effect of COVID-19 on the Company’s supply chain, holding up significant portions of stock in

China;

Inadequate cash flow; and

Trading losses.

Our investigations into the affairs of the Company confirm the Directors’ statement.

Update on the progress of the liquidation

Assets and liabilities

Attached at Appendix A is an analysis of the assets and liabilities of the Company, and comparison to the

Report on Company Activities and Property (ROCAP) as provided by the Directors on 30 and 31 March 2020.

Cash at Bank

On appointment we issued notices to all major Australian financial institutions requesting they immediately

freeze all accounts held in the Company’s name. The following accounts were identified:

Financial Institution Account Type Balance at

appointment Status

Commonwealth Bank of Australia

….718 Overdraft facility

($277,785.85) Receipts after liquidators’ appointment transferred

Australia and New Zealand Banking Group

….615 Business Cheque Account

$496.69 Transferred to liquidation account

Lease Bonds and Bank Guarantees

The Company leased all of the premises that it operated from. Some of these leases were subject to bank

guarantees or cash for up to six months rental security that were held to the benefit of the landlords. With the

exception of the Toowoomba premises, which was being paid month to month, all of the leases had in excess

of 6 months remaining at appointment and we expect that the landlords with entitlement to lease bonds or bank

guarantees will claim them. Approximately c. $61k cash is held as bank guarantees and we do not anticipate

being able to recover these funds.

Stock

On appointment, the most recently prepared report of stock held by the Company estimated stock levels at c.

$423k (valued at cost). The Company had ordered (but not yet paid for) significant levels of stock that became

trapped in China due to the COVID-19 pandemic. This meant the size runs on certain styles of clothing became

limited as stock in Australia became depleted.

We undertook an urgent assessment of the best avenues to realise stock for the benefit of creditors, which

included the options of continued trading through an accelerated closing down sale or a sale of all inventory to

an industry competitor/participant.

An accelerated closing down sale was considered likely to maximize the realisable value of stock while also

preserving the business in the short term whilst we explored opportunities to sell the business, in part or whole

to an industry competitor.


The five retail stores held the closing-down sale from 18 March 2020 to 22 March 2020. The stores were closed

following this, with any remaining stock being sent to the head office and sold online.

A summary of our Receipts and Payments as at 20 May 2020 is shown at Appendix C, but we have

summarised the trading operations in the table below.

Estimated profit and loss for trading period from 9 March 2020 to 17 April 2020 Total ($)

Receipts Total Sales 541,458.00

Total Receipts 541,458.00

Payments GST Paid (43,507.65) Postage (37,716.57) Rent & Rates (35,611.16) Wages & Salaries (33,538.67) Insurance (6,028.17) PAYG Paid (5,224.00) Bank Charges (4,359.80) Superannuation Paid (2,919.16) IT (1,766.61) Printing & Stationery (1,415.70) Freight Outwards (1,034.79) Refund (522.00) Waste Removal (328.75)

Total Payments (173,973.03)

Net trading proceeds 367,484.97

Overall, the trading period generated a cash surplus of c. $367k, excluding the Liquidator’s time costs. We

believe the decision to trade has improved the outcome for creditors

Our agents, GraysOnline, have collected the remaining stock and sold it in an auction setting on 13 May 2020

for $19,708.50 (inc. GST) net proceeds to the liquidation. Proceeds have yet to be received by the liquidation,

but these will be remitted to CBA, in accordance with their first-ranking GSA.

Plant & Equipment

Each of the premises on which Bullzye operated held a number of fixtures and fittings. On closure, the fittings

deemed to be commercial to realise were transported to the Head Office.

Our agents, GraysOnline, have collected these fixtures and fittings and sold it in an auction setting on 13 May

2020 for $13,409.14 (inc. GST) net proceeds to the liquidation.


Motor Vehicles

On appointment, we conducted a vehicle registration search for the Company, in addition to being provided

information from the Directors, which identified the following vehicles being owned and operated in the

Company’s name:

Vehicle Description Valuation Payout

amount Sale

Status

2010 Holden Commodore

$6,000 - $9,000

Nil $11,300 Sold

2016 Toyota Landcruiser

$50,000 - $55,000

$44,154.35 $48,700 Sold

2017 Expedition Motorhome

$350,000 - $450,000

$366,748.48* N/A Collected by Slattery’s for marketing campaign, in correspondence with

Westpac ahead of sale

2019 Enclosed Dual Axle Trailer

$25,000 - $30,000

$48,827.15* N/A Collected by Slattery’s for marketing campaign, in correspondence with

Westpac ahead of sale

*These two facilities are held by Westpac Banking Corporation and are cross-collateralised.

Proceeds have yet to be received by the liquidation for the vehicles that have been sold, but all proceeds from

vehicle sold will be distributed to CBA, Westpac and Toyota Finance, pursuant to their securities and are

unlikely to be available to unsecured creditors.

Sale of Intellectual Property and Online Business

On appointment, we were made aware of a number of parties who were interested in purchasing the

Company’s remaining stock and/or intellectual property.We commenced an urgent marketing campaign to

these interested parties, providing them with information regarding the Company’s intellectual property.

On Wednesday 15 April 2020, we reached an agreement with a purchaser, who agreed to purchase specified

assets of the Company for $80,001.00 ex. GST, including the Company’s Intellectual Property, website and

available customer/supplier information. This purchase did not include any of the Company’s interests in real

property leases, cash at bank, insurance, stock or any other assets not specified within the agreement.

A condition of the asset sale agreement was for the change of the Company’s name from Bullzye Pty Ltd to its

ACN. This change was completed on 8 May 2020.

We are currently working with the purchaser to ensure all conditions of the agreement are met, and all specified

assets are transferred.

Net proceeds from this sale will be distributed to CBA, in accordance with their first-ranking GSA.

Priority Creditors

On our appointment, the Company employed 9 full time staff members and 17 casual staff members, including

the Directors.

We understand employees are owed outstanding superannuation, accrued annual leave and long service

entitlements.

I have terminated all employees to date, and this will incur notice and redundancy payments to eligible

employees, as dictated by the Fair Work Ombudsman.

The ATO are eligible to claim for outstanding Superannuation Guarantee Charge entitlements in place of

employees. The ATO have been advised of the outstanding superannuation obligations, and I am in the

process of adjudicating on this amount.

I estimate total outstanding employee entitlements to be c. $778k.


Pursuant to Section 556 of the Corporations Act 2001, Directors of the Company are only entitled to claim a

maximum of $2,000 for unpaid wages and superannuation, and $1,500 for unpaid annual leave, PILN and long

service leave as a priority claim. As such, c. $179k ranks of entitlements rank as priority claims, while $c. 599k

ranks as unsecured.

Secured Creditors

I have contacted all PPSA registration holders following my appointment and note the current status of the

secured creditors below:

Secured Creditor Number of

registrations Type Role

Australia and New Zealand Banking Group Limited

2 AllPAAP with exception

Awaiting confirmation of discharge of securities

Commonwealth Bank of Australia

1 AllPAAP no exceptions

In correspondence with creditor regarding their security and the liquidation

Westpac Bank Corporation

2 Other Goods In correspondence with creditor regarding sale of specified assets

Dimglen Pty Ltd 2 Motor Vehicle & Other Goods

Awaiting confirmation of discharge of securities

The Trustee for Echelon Retail Unit Trust

1 Other Goods Discharged

Toyota Finance Australia Ltd

1 Other Goods In correspondence with creditor regarding sale of specified assets

Green Group Property Holdings Pty Ltd

1 Other Goods Security questionnaire and proof of debt received

Hanes Australia Pty Ltd


Brand Collective Pty Ltd


RCG Brands Pty Ltd 1 Other Goods Awaiting confirmation of discharge of security

Unsecured Creditors

Attached at Appendix B is a schedule representing the unsecured creditor position of the Company.

A review of the Company’s Books and Records, in addition to the proof of debts received to date, indicates an

unsecured creditor pool of c. $2m.

To date, I have not adjudicated on unsecured creditor claims, and all are subject to change.

Receipts and Payments to date

Attached at Appendix C are details of all receipts and payments in the liquidation to date. I currently have cash

at bank of $412,512.04.

Estimated Outcome Statement

Attached at Appendix D is an estimated outcome statement (EOS), with our current prediction on the flow

funds going for to the conclusion of the liquidation. These figures are estimates only, and are subject to change.


Investigations and recovery actions

Investigations undertaken

I have commenced my initial investigations into the affairs of the Company prior to my appointment and any

potential recovery actions that may be available to the Joint and Several Liquidators to pursue.

To date, we have undertaken the following investigations:

Review of adequacy of books and records;

Review of Director’s actions and any potential breaches of director duties;

Assessment of potential insolvent trading; and

Review of potential voidable transactions.

My findings of these investigations are detailed below. Given the limited time that has passed in the liquidation,

and that further investigations will be undertaken, the below findings are preliminary and may be subject to

change. Pursuant to s533 of the Corporations Act (Cth) (the “Act”), I will report any breach to ASIC.

Should it be determined that there are potential claims against the Directors, recovery of such claims will be

dependent on whether the Directors are in a financial position or has the ability to meet such claims. I have

conducted a property search of the Directors, each of whom either jointly own or whose spouse owns a

property. Both of these properties are encumbered by mortgages.

Directors and officers to assist the liquidators

Section 530A of the Corporations Act 2001 (Cth) places a positive obligation on a director to assist the

liquidator of a company. I believe that the Directors have complied with his obligation pursuant to s530A of the

Act.

Director’s obligations to maintain adequate books and records

The Company’s electronic MYOB Accountright file appears to record comprehensive transactions up to the date

of my appointment. In addition, I have collected the Company’s hard drives, and received assistance from the

Directors in interpreting certain information.

At this time I have no evidence to suggest that the Directors have breached their obligations to maintain

adequate books and records of the Company pursuant to s286 of the Act.

Insolvent trading

I have reviewed both the cash flow and balance sheet tests of insolvency and have determined that the

Company likely became insolvent during or before January 2019 based on the following factors:

Persistent Current Ratio (Current Assets divided by Current Liability) less than 1 in FY2019 and

FY2020;

Trading losses in FY19 and FY20, with poorer seasonal financial performances than in previous years;

There were unpaid amounts for significant trade creditors dating back to January 2019;

More than 50% of creditors (in value) aged 90+ days onwards from January 2019 consistently; and

Arrangement of a payment plan with the ATO in January 2019.

If an action regarding insolvent trading is commenced, provided it is commercial to do so, further work will be

completed in respect of determining a date of insolvency.


Voidable transactions

Unreasonable director-related transactions

My investigations have not identified any unreasonable director-related transactions at this stage. The Directors

both have advanced monies to the Company in the two years preceding the liquidation as an unsecured loan to

fund the trading of the Company. These loan balances have not decreased in the two years, and in fact have

increased as the Directors have advanced further monies to the Company.

Unfair preference payments

My investigations have uncovered a number of payments to a creditor which may be considered preferential

totaling c. $61k. Further work will be conducted in this regard before any claim against the creditor is made.

Further inquiries to be undertaken

We plan to undertake the following further investigations:

Accurately determine the date of insolvency, if required to establish claims;

Pursue any voidable transaction claims and director-related transactions, where I deem it commercial

to do so;

Report on my investigations and findings to the ASIC, pursuant to s533 of the Act.

Likelihood of a dividend

The likelihood of a dividend being paid to different class of creditors is typically affected by a number of factors

including:

The amount of assets realisable and the costs of realising those assets.

The statutory priority of certain claims and costs.

The value of various classes of claims including secured, priority and unsecured creditor claims.

The volume of enquiries by creditors and other stakeholders.

With this report, I have provided a notice of intention to declare a dividend to priority creditors on or before 24

June 2020. I currently hold sufficient funds to discharge priority creditors in full.

All remaining asset realisations will be applied to partially discharge the debt of the CBA. I am not in a position

at this stage to advice on any unsecured dividend at this stage as this will be contingent on my ability to recover

voidable transactions.

Cost of the liquidation

I am seeking approval of remuneration of $108,821.00 (exclusive of GST) for the period from appointment to

finalisation of the liquidation.

This has marginally increased compared to our previous estimates in the Initial Remuneration Notice because:

The extended campaign to sell the Intellectual Property of the Company;

The duration of the trading period of the Company; and

The remaining work required to fully realise assets for the benefit of creditors.

Attached at Appendix E is a detailed report on my remuneration, called a Remuneration Approval Report. I am

unable to pay my remuneration without the approval of creditors or the court.

I am seeking creditor approval of our remuneration by a proposal without a meeting.

To participate in the proposal, please complete and return the following by no later than 17 June 2020.


The “proposal without a meeting” form/s included at Appendix F.

The “proof of debt” form included at Appendix G which enables you to provides information about what the

company owes you, along with supporting documents for your claim (if not returned previously).

The documents can be scanned and emailed to [email protected] or returned via post to our firm’s

address, attention Nathan Bleakley. If you choose to return these documents via post, please ensure that you

allow enough time for us to receive them by the due date.

What happens next in the liquidation?

I will proceed with the liquidation, including:

Sell the remaining assets;

Realise any further available property;

Complete my investigations into the Company’s affairs;

Complete my reporting to the corporate insolvency regulator, the Australian Securities and Investments

Commission (ASIC);

Distribute funds to priority creditors, and declare any subsequent distributions in the liquidation when

appropriate; and

Any other matters relevant to the liquidation.

I may write to you again with further information on the progress of the liquidation.

I expect to have completed this liquidation within 12 months.

Compliance with best practice

I confirm that this report complies with the requirements in the Insolvency Practice Rules (IPR), specifically IPR

70-40, as well as the statements of best practice issued by the Australian Restructuring Insolvency and

Turnaround Association (ARITA) with regard to content of the Statutory Report by Liquidator and the Code of

Professional Practice with regard to remuneration.

What to do next

You should now:

Read the report and attached information.

Determine if and how you are going to vote on the proposal.

Complete and return your proposal voting form and proof of debt by 17 June 2020.

Where can you get more information?

You can access information which may assist you on the following websites:

1 ARITA at www.arita.com.au/creditors

2 ASIC at www.asic.giv.au (search for “insolvency information sheets”).


Should you have any queries with respect to the above, you may also contact Nathan Bleakley of my office on

+61 7 3222 0449 or via email on [email protected]. There is also information about this liquidation on

my firm’s website, www.grantthornton.com.au under Creditors Information. Creditors are advised to search

“Bullzye Pty Ltd” at the top of the webpage to easily navigate to the page.

Dated: 20 May 2020

Cameron Crichton


List of attachments

Appendix A - Assets and Liabilities comparison to ROCAP

Appendix B – List of Unsecured Creditors

Appendix C - Joint and Several Liquidators’ receipts and payments

Appendix D – Estimated Outcome Statement

Appendix E - Remuneration Approval Report

Appendix F - Proposals without a meeting

Appendix G - Proof of Debt

No signature required


Assets and Liabilities comparison to ROCAP Gerard Kraatz & Aaron Owens ROCAP

As at 9 March 2020

Director’s Book Value

$

Director’s ERV

$

Liquidator’s ERV

$

Assets

Cash at Bank 482 482 497

Cash on Hand at stores 4,229 4,229 4,229

Vehicles 609,000 609,000 400,000

Fixtures and Fittings 118,000 118,000 25,000

Stock 423,203 423,203 560,000

Intellectual Property 50,000 50,000 80,001

Total Assets 1,204,914 1,204,914 1,069,727

Liabilities

Amounts owing to Priority Creditors 131,673 131,673 185,993

Amounts owing to Secured Creditors 820,931 820,931 739,157

Amounts owing to Unsecured Creditors 2,012,815 2,012,815 2,022,022

Total Creditors 2,965,419 2,965,419 2,947,172

Total Surplus (Deficiency) (1,760,505) (1,760,505) (1,877,445)

Appendix A


List of Unsecured Creditors Creditor Name Amount

($)

ADT Security 116.54

Au Digital 4,014.04

Australian and New Zealand Banking Group 40,518.36

Australian Taxation Office 55,582.67

Ausure Ruralco Pty Ltd 3,363.70

Bee Dee Bags 3,693.80

Big Pond (Telstra) 1,251.22

BJ & KI Davidson Super Fund 35,861.04

Bonzer Limited 96,890.48

Btap Logistics International Pty Ltd 15,212.99

Bundaberg Broadcasters Pty Ltd 1,980.00

Bullzye - Gift Vouchers Outstanding 1,303.20

Bundaberg Field Day Society 800.00

Bybcah Pty Ltd 9,179.50

Cleanaway 65.92

Dormakaba Australia Pty Ltd 99.00

Ergon Energy 3,625.64

Federal Express 1,865.59

Flaming North Fire Protection 214.50

FTTOA Pty Ltd 194,423.00

Green Group Property Holdings Pty Ltd 9,919.90

IMG Property Management 3,372.51

Inxpress 14,035.58

JJ Richards 454.20

Kraatz, Gerard 557,737.36

Liaise International Pty Ltd 1,750.43

Liive Vision Pty Ltd 1,334.24

Mail Plus 351.45

Mareeba District Rodeo Assn Inc 1,900.00

Michael De Pinto 235.13

Mitchell's Cap Company Pty. Ltd. 21,323.00

Owens, Aaron (Mr) 390,009.69

Oz Hoop Pty. Ltd. 5,225.00

Pinoir Pty. Ltd. 13,597.50

Qic Properties Pty Ltd 13,160.76

Rechenberg Security & Locksmiths 112.40

Red Energy 1,425.02

S.J Davidson & Oceanatic Pty Ltd 80,765.71

Sass Clothing Pty Ltd 9,233.53

Sb Fire Services Pty Ltd 181.50

Spruson & Ferguson 1,309.00

The Man From Snowy River Bush 1,000.00

The Trustee For Darmic Trust 179.00

The Trustee For Kinetic Business Trust 2,560.81

Townsville Window Cleaning 110.00

True Active Ltd 418,227.81

Workcover Qld 2,449.29

Total Unsecured Creditors 2,022,022

Appendix B


Joint and Several Liquidators’ receipts and payments

Receipts and payments account as at 20 May 2020 Total ($)

Receipts Total Trading Sales 541,458.00 Sale of Intellectual Property 88,001.10 Fixtures & Fittings 13,409.14 GST Rounding 0.10

Total Receipts 642,868.34

Payments First Dividend for Secured Creditors (53,845.20) GST Paid (48,149.10) Wages & Salaries (33,538.67) Rent & Rates (28,980.24) Postage (19,182.29) Legal Fees (17,039.88) Insurance (6,028.17) Liquidator Fees (5,500.00) PAYG Paid (5,224.00) Bank Charges (4,359.80) Superannuation Paid (2,919.16) IT (1,766.61) Printing & Stationery (1,415.70) Freight Outwards (1,034.79) Refund (522.00) Stamp Duty (480.03) Waste Removal (328.75) ASIC Application Fees (41.00)

Total Payments (230,356.30)

Net cash on hand 412,512.04

Appendix C


Estimated Outcome Statement (EOS)

Appendix D

Bullzye Pty Ltd (In Liquidation)Estimated outcome statement (ex. GST)as at 20 May 2020 Amounts ($)

Cash on hand (liquidator's account) 412,512

Cash on hand as at 20 May 2020 412,512

Future realisations

Net proceeds from vehicles 13,716

Stock 17,917

Total estimated available cash 444,145

Trading costs to be discharged

Post-appointment Annual Leave & Leave Loading (3,945)

Remaining Trading Costs to be paid (37,500)

Total trading costs to be discharged (41,445)

Net funds available 402,699

Liquidation costs and expenses

Liquidators time incurred to 17 May 2020 2020 (ex. GST) (83,821)

Liquidator disbursements incurred (excl. legal fees, ex. GST) (2,330)

Total liquidation costs expenses (86,151) (86,151)

Net current position 316,548

Liquidator future costs and expenses

Est. Liquidator time to be incurred (35,000)Est. Liquidator disbursments to be incurred (1,000)

Total estimated future liquidator and legal expenses (35,000)

Net remaining funds 281,548

Priority creditors

Wages (2,000)

Superannuation (73,283)

Annual Leave (19,463)

Leave Loading (2,881)

Long Service Leave (14,190)

PILN (20,385)

Redundancy (53,846)

Total Priority Creditors (184,049)

Net funds remaining for secured creditors 97,499

Secured creditors

Commonwealth Bank Overdraft (225,582)

Voidable Transaction Claim

Preference Payments 61,000

Net funds available unsecured creditors 61,000

Unsecured creditors

Current known unsecured creditors (2,022,682)

Estimated c/$ distribution 0.03$

Prepared by Grant Thornton on 20 May 2020

All figures are estimates only, are subject to change and may vary significantly


Remuneration Approval Report

Appendix E

Remuneration Approval Report

ACN 114 920 311 PTY LTD (IN LIQUIDATION) (FORMERLY BULLZYE PTY LTD) ACN 114 920 311 (“the Company”)

#3115847v1

This remuneration approval report provides you with the information you need to be able to make an

informed decision regarding the approval of our remuneration for undertaking the Creditors Voluntary

Liquidation of ACN 114 920 311 Pty Ltd (Formerly Bullzye Pty Ltd).

This report has the following information included:

Part 1: Declaration 3

Part 2: Executive Summary 3

Part 3. Remuneration 4

3.1 Remuneration claim resolutions 4

3.2 Details of remuneration 4

3.3 Total remuneration reconciliation 5

3.4 Likely impact on dividends 5

Part 4: Disbursements 6

4.1 Internal disbursement claim [if required] 6

4.2 Future basis of internal disbursements [if required] 7

Part 5: Approval of remuneration and internal disbursements 7

Part 6: Queries 8

Schedule A – Resolution 1 Summary Table 9

Schedule B – Resolution 1 Table of major tasks for remuneration 10

Schedule C – Resolution 2 Table of major tasks for remuneration 14

Contents

Remuneration Approval Report 2

You should read this report and the other documentation that we have sent you.

To minimise the costs in this Creditors Voluntary Liquidation, we have elected to seek the approval of

creditors for our remuneration and internal disbursements without a meeting.

You can cast your vote by using the included voting forms. These forms then need to be returned to our

office by post, scanned and emailed or faxed. We need to receive your forms by 17 June 2020 for your

vote to count. If you chose to use post, please allow enough time for your letter to be delivered.

If you have any questions, or need any assistance with understanding the materials we have sent to

you, please contact Nathan Bleakley on (07) 3222 0449 or [email protected].

What do you need to do

next?


Part 1: Declaration Cameron Crichton and Graham Robert Killer of Grant Thornton Australia Limited have undertaken a

proper assessment of this remuneration claim for our appointment as Joint and Several Liquidators of

ACN 114 920 311 Pty Ltd (Formerly Bullzye Pty Ltd) in accordance with the law and applicable

professional standards. We are satisfied that the remuneration claimed is in respect of necessary work,

properly performed, or to be properly performed, in the conduct of the Creditors Voluntary Liquidation.

Part 2: Executive Summary The total remuneration for this appointment is estimated to be $108,821.00 (excluding GST).

Under section 60-1 of the Insolvency Practice Schedule, we are entitled to claim $5,000 (ex. GST) for

remuneration prior to the approval of creditors. The retrospective remuneration claimed below is

inclusive of this amount already paid.

This has marginally increased compared to our previous estimates in the Initial Remuneration Notice

because:

The extended campaign to sell the Intellectual Property of the Company;

The duration of the trading period of the Company; and

The remaining work required to fully realise assets for the benefit of creditors.

Remuneration currently claimed is summarised below:

Period Report Reference

Amount (ex GST)

Current Remuneration claim:

Creditors Voluntary Liquidation

Resolution 1: 9 March 2020 to 17 May 2020 Part 3, Sch A,B $83,821.00

Resolution 2: 18 May 2020 to Finalisation Part 3, Sch C $25,000.00

TOTAL remuneration claimed $108,821.00

* Approval for the future remuneration sought is based on an estimate of the work necessary to the completion of the administration. Should additional work be necessary beyond what is contemplated, further approval may be sought from creditors.

Internal disbursements currently claimed are summarised below:

Period Report Reference

Amount (ex GST)

Current internal disbursements claim:

Creditors Voluntary Liquidation

Resolution 3: 9 March 2020 to 17 May 2020 Part 4 $2,330.10

Resolution 4: 18 May 2020 to Finalisation Part 4 $1,000.00

TOTAL internal disbursements claimed

$3,330.10

* Approval for the future internal disbursements sought is based on an estimate of the internal disbursements necessary to the completion of the administration. Should additional disbursements be necessary beyond what is contemplated, further approval may be sought from creditors.


Part 3. Remuneration

3.1 Remuneration claim resolutions

We will be seeking approval of the following resolutions to approve our remuneration. Details to support

these resolutions are included in section 3.2 and in the attached Schedules.

Resolution 1 from 9 March 2020 to 17 May 2020: “That the remuneration of the Joint and Several

Liquidators, their partners and staff, for the period from appointment to 17 May 2020, calculated at the

hours spent at the rates detailed in the Initial Remuneration Notice provided to creditors, is approved for

payment in the amount of $83,821.00, exclusive of GST, to be drawn from available funds immediately

or as funds become available.”

Resolution 2 from 18 May 2020 to finalisation: “That the future remuneration of the Joint and Several

Liquidators for the period from 18 May 2020 to finalisation, is determined at a sum equal to the cost of

time spent by the Joint and Several Liquidators and their partners and staff, calculated at the hourly

rates as detailed in the Initial Remuneration Notice provided to creditors, that may be increased at a rate

of up to 5% at 1 July each year (rounded to the nearest $10), up to a capped amount of $25,000.00,

exclusive of GST, and that the Joint and Several Liquidators can draw the remuneration from available

funds as time is incurred on a monthly basis or as funds become available.”

3.2 Details of remuneration

The basis of calculating the remuneration claims are summarised below and the details of the major

tasks performed and the costs associated with each of those major tasks are contained in Schedules B

and C.

Resolution 1 from 9 March 2020 to 17 May 2020: “That the remuneration of the Joint and Several

Liquidators, their partners and staff, for the period from appointment to 17 May 2020, calculated at the

hours spent at the rates detailed in the Initial Remuneration Notice provided to creditors, is approved for

payment in the amount of $83,821.00, exclusive of GST, to be drawn from available funds immediately

or as funds become available.”

The table at Schedule A sets out time charged to each major task area by staff members working on the

Creditors Voluntary Liquidation for the period from appointment to 17 May 2020 which is the basis of the

Resolution 1 claim. More detailed descriptions of the tasks performed within each task area, matching

the amounts below, are contained in Schedule B.


Resolution 2 from 18 May 2020 to finalisation: “That the future remuneration of the Joint and Several

Liquidators for the period from 18 May 2020 to finalisation, is determined at a sum equal to the cost of

time spent by the Joint and Several Liquidators and their partners and staff, calculated at the hourly

rates as detailed in the Initial Remuneration Notice provided to creditors, that may be increased at a rate

of up to 5% at 1 July each year (rounded to the nearest $10), up to a capped amount of $25,000.00,

exclusive of GST, and that the Joint and Several Liquidators can draw the remuneration from available

funds as time is incurred on a monthly basis or as funds become available.”

The below table sets out the expected costs for the major tasks likely to be performed by the Joint and

Several Liquidators and our staff for the period 1 May 2020 to finalisation is the basis of the Resolution 2

claim. More detailed descriptions of the tasks likely to performed within each task area, matching the

amounts below, are contained in Schedule C.

3.3 Total remuneration reconciliation

In preparing this remuneration approval report, I have made my best estimate at what I believe the

Creditors Voluntary Liquidation will cost to complete and I do not anticipate that I will have to ask

creditors to approve any further remuneration. However, should the Creditors Voluntary Liquidation not

proceed as expected, I will advise creditors and I may seek approval of further remuneration and

provide details on why the remuneration has changed. Matters that may affect the progress and costs of

the liquidation include:

The recovery process on any remaining assets;

The outcome of any recovery pursuits; and

The calculation and process of any distributions to creditors.

3.4 Likely impact on dividends

The Corporations Act sets the order for payment of claims against the company and it provides for

remuneration of the Joint and Several Liquidators to be paid in priority to other claims. This ensures that

when there are sufficient funds, the Joint and Several Liquidators receives payment for the work done to

recover assets, investigate the company’s affairs, report to creditors and ASIC and distribute any

available funds. Even if creditors approve our remuneration, this does not guarantee that we will be

paid, as we are only paid if sufficient assets are recovered.

Total ($)

Task Area

Ass

ets

$

Cre

dito

rs $

Em

plo

yee

s $

Inv

es

tiga

tion

$

Div

ide

nd

$

Ad

min

istra

tion

$

Total (est) $25,000 $5,000 $4,000 $4,000 $4,000 $5,000 $3,000

GST $2,500 $500 $400 $400 $400 $500 $300

Total (incl

GST)

$27,500 $5,500 $4,000 $4,400 $4,400 $5,500 $3,300


Any dividend to creditors will also be impacted by the amount of assets that we are able to recover and

the amount of creditor claims that are admitted to participate in any dividend, including any claims by

priority creditors such as employees.

The Corporations Act sets the order for payment of claims against the company and it provides for

remuneration of the Joint and Several Liquidators to be paid in priority to other claims. This ensures that

when there are sufficient funds, the Joint and Several Liquidators receives payment for the work done to

recover assets, investigate the company’s affairs, report to creditors and ASIC and distribute any

I am providing my notice of intention to declare a dividend to priority creditors along with my report. This

will be a full dividend to priority creditors.

I am not currently able to confirm what level of dividend will be available to secured and unsecured

creditors, as this is subject to a range of variables, particularly the future realisations and creditor claims.

Part 4: Disbursements Disbursements are divided into three types:

Externally provided professional services - these are recovered at cost. An example of an

externally provided professional service disbursement is legal fees.

Externally provided non-professional costs - these are recovered at cost. Examples of externally

provided non-professional costs are travel, accommodation and search fees.

Internal disbursements such as photocopying, printing and postage. These disbursements, if

charged to the Administration, would generally be charged at cost; though some expenses such as

telephone calls, photocopying and printing may be charged at a rate which recoups both variable

and fixed costs. The recovery of these costs must be on a reasonable commercial basis. Details of

the basis of recovery of each of these costs is discussed below.

We have undertaken a proper assessment of disbursements claimed for Bullzye Pty Ltd in accordance

with the law and applicable professional standards. We are satisfied that the disbursements claimed are

necessary and proper.

We will be seeking creditor approval to pay our internal disbursements from creditors.

4.1 Internal disbursement claim

The following internal disbursements have been claimed by our firm for the period from 9 March 2020 to

17 May 2020. Approval of these disbursements from creditors in the amount of $2,330.10 (ex. GST) is

being sought from creditors via a proposal without a meeting.

Disbursements claimed to 10 May 2020

Basis Total (Excl GST)

Postage (small letter) $1.06 / letter $65.78

Postage (large letter) $2.11 / letter $21.10

Search & Filing Fees At cost $174.42

Advertising Charges – Facebook Marketing for closing down sale At cost $2,022.02

Travel: Car Mileage $0.66/km $14.96

Parking At cost $31.82

Total $2,330.10


Resolution 3: disbursements from 9 March 2020 to 17 May 2020:

“That the disbursements of the Joint and Several Liquidators, their partners and staff for the period 9

March 2020 to 17 May 2020 be approved for payment in the amount of $2,330.10 plus GST and that the

Joint and Several Liquidators can draw the disbursements immediately or as required.”

4.2 Future basis of internal disbursements

Future disbursements provided by our firm will be charged to the administration on the following basis:

Resolution 4: Disbursements from 18 May 2020 to Finalisation:

“That the future disbursements of the Joint and Several Liquidators, their partners and staff for the

period 18 May 2020 to finalisation of the liquidation be approved as per the schedule of costs below, to

a capped amount of $1,000.00 plus GST and that the Liquidator can draw the disbursements

immediately or as required.”

Internal disbursements Rate (Excl GST)

Courier At Cost

Postage (large) $2.11 / letter

Postage (small) $1.06 / letter

Fax (interstate) $2.00 / page

Fax (local) $1.00 / page

Staff vehicle use $0.66 / km

Rates applicable for financial year ending 30 June 2020

Approval of the payment of these disbursements at the above rates to a capped amount of $1,000.00

plus GST is being sought from creditors via a proposal without a meeting,

Part 5: Approval of remuneration and internal disbursements In summary, we are seeking creditor approval for the following resolutions for our remuneration and

internal disbursements.

Resolution 1

“That the remuneration of the Joint and Several Liquidators, their partners and staff, for the period from

appointment to 17 May 2020, calculated at the hours spent at the rates detailed in the Initial

Remuneration Notice provided to creditors, is approved for payment in the amount of $83,821.00,

exclusive of GST, to be drawn from available funds immediately or as funds become available.”

Resolution 2

“That the future remuneration of the Joint and Several Liquidators for the period from 18 May 2020 to

finalisation, is determined at a sum equal to the cost of time spent by the Joint and Several Liquidators

and their partners and staff, calculated at the hourly rates as detailed in the Initial Remuneration Notice

provided to creditors, that may be increased at a rate of up to 5% at 1 July each year (rounded to the

nearest $10), up to a capped amount of $25,000.00, exclusive of GST, and that the Joint and Several

Liquidators can draw the remuneration from available funds as time is incurred on a monthly basis or as

funds become available.”

Resolution 3


“That the disbursements of the Joint and Several Liquidators, their partners and staff for the period 9

March 2020 to 17 May 2020 be approved for payment in the amount of $2,330.10 plus GST and that the

Joint and Several Liquidators can draw the disbursements immediately or as required.”

Resolution 4

“That the future disbursements of the Joint and Several Liquidators, their partners and staff for the

period 18 May 2020 to finalisation of the liquidation be approved as per the schedule of costs below, to

a capped amount of $1,000.00 plus GST and that the Liquidator can draw the disbursements

immediately or as required.”


Courier At Cost







Additionally, we are seeking approval of the following resolution in respect of the Company’s books and

records:

Resolution 5

“That the creditors direct the Joint and Several Liquidators to apply to ASIC when appropriate or upon

finalisation of the liquidation for consent to destroy books within the retention period in accordance with

IPS 70-35.”

Part 6: Queries If you have any queries in relation to the information in this report, please contact my staff:

Contact Name: Nathan Bleakley

Contact Number: +61 7 3222 0449

Email: [email protected]

You can also access information which may assist you on the following websites:

ARITA at www.arita.com.au/creditors

ASIC at www.asic.giv.au (search for “insolvency information sheets”).


Schedule A – Resolution 1 Summary Table Time incurred for period 9 March 2020 to 17 May 2020

IPAA Tasks

Assets Creditors Trade On Investigations Administration Employees Statutory

Employee Position

$/Hr (excl. GST)

Total Hours

Total Costs excl. GST Hrs $ Hrs $ Hrs $ Hrs $ Hrs $ Hrs $ Hrs $

Cameron Crichton

Partner 620.00 41.6 25,792.00 26.7 16,554.00 1.3 806.00 4.3 2,666.00 1.7 1,054.00 5.8 3,596.00 1.8 1,116.00 - -

Sally Pace Senior Manager

515.00 12.4 6,386.00 1.4 721.00 6.5 3,502.00 0.3 154.50 0.7 360.50 2.4 1,236.00 0.2 103.00 0.9 463.50

Benjamin Sanders

Senior Associate

385.00 0.6 231.00 - - - - - - - - 0.6 231.00 - - - -

Kegan Nash

Senior Associate

385.00 0.3 115.50 - - - - - - - - 0.3 115.50 - - - -

Nathan Bleakley

Associate 250.00 175.3 43,825.00 32.1 8,025.00 72.1 17,300.00 23.8 5,950.00 12.5 3,125.00 8.4 2,100.00 20.2 5,050.00 6.2 1,550.00

Barbara Proberts

Treasury 245.00 8.4 2,058.00 1.7 416.50 2.0 490.00 - - 0.8 196.00 - - 0.1 24.50 3.8 931.00

Tanya Brown

Treasury 245.00 20.4 4,998.00 - - 0.4 98.00 - - - - 17.6 4,312.00 - - 2.4 588.00

Kelly Byrnes

EA/PA 200.00 1.5 300.00 - - - - - - - - 1.5 300.00 - - - -

Alexandra Hunt

Operational Services

165.00 0.7 115.50 - - - - - - - - 0.7 115.50 - - - -

Total 261.2 83,821.00 61.9 25,716.50 82.3 22,766.50 28.4 8,770.50 15.7 4,735.50 37.3 12,006.00 22.3 6,293.50 13.3 3,532.50


Schedule B – Resolution 1 Table of major tasks for remuneration The below table provides a description of the work undertaken in each major task area for the period 9

March 2020 to 17 May 2020

Task Area General Description Includes

Assets

61.9 hours

$25,716.50

Sale of Intellectual Property Preparing an information memorandum

Liaising with interested parties – answering queries, preparing confidential information, negotiations

Discussions with purchaser – negotiations

Instructing solicitors regarding contract and negotiations

Attending to condition of asset sale agreement

Internal meetings to discuss/review offers received

Plant and Equipment Liaising with valuers, auctioneers and interested parties

Arranging collection of stock/fittings from site

Reviewing asset listings

Motor vehicles Completing searches to find vehicles

Liaising with directors and auctioneers for collection of vehicles

Assets subject to specific charges

All tasks associated with realising a charged asset

Liaising with secured creditors to seek guidance of realisation of assets

Stock Seeking updates on stock value during trading period

Reviewing stock values

Liaising with purchasers

Liaising with auctioneers to collect and sell remaining stock

Other Assets Tasks associated with realising other assets

Leasing Reviewing leasing documents

Liaising with owners/lessors

Tasks associated with disclaiming leases

Creditors

82.3 hours

$22,766.50

Creditor Enquiries, Requests & Directions

Receive and respond to creditor enquiries

Maintaining creditor request log

Review and prepare initial correspondence to creditors and their representatives

Considering reasonableness of creditor requests

Compiling information requested by creditors

PPSR Search to the PPSR register



Notify PMSI creditors identified from PPSR register

Receive initial notification of creditor’s intention to claim

Correspondence with PMSI creditors, regarding discharge of security

Meeting claimant on site to identify goods

Secured creditor reporting Notifying PPSR registered creditors of appointment

Responding to secured creditor’s queries

Informing secured creditors regarding realisation of assets

Creditor reports Preparing Statutory Report by Liquidator, investigation, meeting and general reports to creditors

Dealing with proofs of debt Receipting and filing PODs

Employees

22.3 hours

$6,293.50

Employees enquiries

Receive and follow up employee enquiries via telephone

Maintain employee enquiry register

Review and prepare correspondence to creditors via email and post

Preparation of letters to employees advising of their entitlements and options available

Preparation of termination documents including separation certificates

FEG Correspondence with FEG

Completing FEG questionnaires

Calculation of entitlements Calculating employee entitlements

Reviewing employee files and company’s books and records

Reconciling superannuation accounts

Reviewing awards

Liaising with solicitors regarding entitlements

Workers compensation claims Correspondence with insurer regarding initial and ongoing workers compensation insurance requirements

Other employee issues Correspondence with Centrelink

Trade On

28.4 hours

$8,770.50

Trade On Management Liaising with suppliers

Liaising with landlords to continue occupancy

Liaising with management and staff

Calls with staff to answer questions re: trading

Attendance on site

Processing receipts and payments

Management of payments to continue trading



Entering receipts and payments into accounting system

Budgeting and financial reporting

Reviewing company’s budgets and financial statements – comparison of historical data to predict trading scenarios

Preparing budgets/forecasts for trading scenarios

Preparing weekly financial reports

Finalising trading profit or loss

Meetings to discuss trading position with directors and staff

Investigation

15.7 hours

$4,735.50

Conducting investigation Collection of company books and records

Reviewing company’s books and records

Review and preparation of company nature and history

Conducting and summarising statutory searches

Preparation of comparative financial statements

Review of specific transactions and liaising with directors regarding certain transactions

Liaising with directors regarding certain transactions

Preparation of investigation file

Statutory

13.3 hours

$3,532.50

Statutory Reporting Notification of appointment

Lodge and correspondence with statutory bodies

ASIC Forms Preparation and lodging ASIC Forms including 505, 507, 5601, 525s etc.

Administration

37.3 hours

$12,006.00

Insurance Identification of potential issues requiring attention of insurance specialists

Correspondence with insurer regarding initial and ongoing insurance requirements

Reviewing insurance policies

Correspondence with previous brokers

Bank account administration Preparing correspondence opening and closing accounts

Requesting bank statements

Bank account reconciliations

Correspondence with bank regarding specific transfers

ATO and other statutory reporting

Preparing BAS

Planning / Review Discussions regarding status of administration

Books and records / storage Dealing with records in storage

Sending job files to storage



Filing of documents

Total

$83,821.00


Schedule C – Resolution 2 - Table of major tasks for remuneration The below table provides a description of the work to be undertaken in each major task area for the

period 18 May 2020 to finalisation


Assets

$5,000

Sale of Intellectual Property Finalise sale conditions for sale of specified assets

Plant and Equipment Liaising with valuers, auctioneers and interested parties

Arranging collection of stock/fittings from site

Reviewing asset listings

Motor vehicles Liaising with auctioneers to sell vehicle

Review marketing materials for sale of motor vehicles

Assets subject to specific charges

All tasks associated with realising a charged asset

Liaising with secured creditors to seek guidance of realisation of assets

Stock Liaising with auctioneers for sale

Other Assets Tasks associated with realising other assets

Creditors

$4,000

Creditor Enquiries, Requests & Directions

Receive and respond to creditor enquiries

Maintaining creditor request log

Review and prepare initial correspondence to creditors and their representatives

Considering reasonableness of creditor requests

Obtaining legal advice on requests

Documenting reasons for complying or not complying with requests or directions

Compiling information requested by creditors

Secured creditor reporting Preparing reports to secured creditor

Responding to secured creditor’s queries

Creditor reports Finalising statutory report to creditors

Dealing with proofs of debt Receipting and filing POD when not related to a dividend

Proposals to Creditors Preparing proposal notices and voting forms

Forward notice of proposal to all known creditors

Reviewing votes and determining outcome of proposal

Preparation and lodgement of proposal outcome with ASIC

Employees

$4,000

Calculation of entitlements Liaising with employees to confirm entitlements

Employee dividend Correspondence with employees regarding dividend



Correspondence with ATO regarding SGC proof of debt

Calculating dividend rate

Preparing dividend file

Advertising dividend notice

Preparing distribution

Receipting POD

Adjudicating POD

Investigation

$4,000

Conducting investigation Reviewing company’s books and records

Review of specific transactions and liaising with directors regarding certain transactions

Liaising with directors regarding certain transactions

Preparation of investigation file

Lodgement of investigation with the ASIC

Preparation and lodgement of supplementary report if required

ASIC reporting Preparing statutory investigation reports and s533 report

Liaising with ASIC

Dividend

$5,000

Processing proofs of debt Preparation of correspondence to potential creditors inviting lodgement of POD

Receipt of POD

Maintain POD register

Adjudicating POD

Request further information from claimants regarding POD

Preparation of correspondence to claimant advising outcome of adjudication

Dividend procedures Preparation of correspondence to creditors advising of intention to declare dividend

Advertisement of intention to declare dividend

Obtain clearance from ATO to allow distribution of company’s assets

Preparation of dividend calculation

Preparation of correspondence to creditors announcing declaration of dividend

Advertise announcement of dividend

Preparation of distribution

Preparation of dividend file

Preparation of correspondence to creditors enclosing payment of dividend

Administration

$3,000

Document maintenance/file review/checklist

First month, then six monthly administration reviews

Filing of documents

File reviews

Updating checklists



Insurance Identification of potential issues requiring attention of insurance specialists

Reviewing insurance policies

Renewal of insurance policies if required

Correspondence with previous brokers

Bank account administration Preparing correspondence opening and closing accounts

Requesting bank statements

Bank account reconciliations

Correspondence with bank regarding specific transfers

ASIC Form 524 and other forms Preparing and lodging ASIC forms including 505, 524, 533

Correspondence with ASIC regarding statutory forms

ATO and other statutory reporting

Notification of appointment

Preparing BAS

Completing group certificates

Finalisation Notifying ATO of finalisation

Cancelling ABN / GST / PAYG registration

Completing checklists

Planning / Review Discussions regarding status of administration

Books and records / storage Dealing with records in storage

Sending job files to storage

Total

$25,000


Proposals without a meeting

Appendix F

#3163597v1

20 May 2020

NOTICE OF PROPOSAL TO CREDITORS

ACN 114 920 311 Pty Ltd (In Liquidation)

(Formerly Bullzye Pty Ltd) ACN 114 920 311 (“the Company”)

Proposal for creditor approval – Resolution 1

“That the remuneration of the Joint and Several Liquidators, their partners and staff, for the period from appointment to 17 May

2020, calculated at the hours spent at the rates detailed in the Initial Remuneration Notice provided to creditors, is approved

for payment in the amount of $83,821.00, exclusive of GST, to be drawn from available funds immediately or as funds become

available.”

Reasons for the proposal and the likely impact it will have on creditors if it is passed

The proposal is being put to creditors to approve remuneration as allowed under law. The proposal if passed will minimise the cost of approving remuneration to the Creditors Voluntary Liquidation, which would otherwise require a meeting of creditors or court application to be approved – which can be costly. Remuneration of the liquidators is to be paid in priority to other claims under the Corporations Act. This ensures that when there are sufficient funds, the liquidators receive payment for the work done to recover assets, investigate the Company’s affairs, report to creditors and ASIC and distribute any available funds. Even if creditors approve our remuneration, this does not guarantee that we will be paid, as we are only paid if sufficient assets are recovered. If sufficient assets are recovered, there may be funds available to pay a dividend to creditors, however this is affected by many variables including the value of assets and complexity of realising those assets, the level of creditors enquiries, the priority of claims (including employee claims) and the total value of creditor claims to be admitted to participate in a dividend. My remuneration approval report, which has been provided with this notice provides more detailed information on remuneration I am seeking to be approved.

Vote on proposal

Creditors have the option of approving, not approving or objecting to the proposal being resolved without a meeting of

creditors. Please select the appropriate Yes, No or Object box referred to below:

Yes 󠆤 I approve the proposal

No 󠆤 I do not approve the proposal

Object 󠆤 I object to the proposal being resolved without a meeting of creditors

Your claim against the Company must be admitted for the purposes of voting by the Creditors Voluntary Liquidation for your

vote to count. Please select the option that applies:

󠆤 I have previously submitted a proof of debt form and supporting documents

󠆤 I have enclosed a proof of debt form and supporting documents with this proposal form

#3163597v1

Creditor details

Name of creditor: ACN / ABN (if applicable):

󠆤 I am not a related creditor of the Company.

󠆤 I am a related creditor of the Company, relationship: .

Address: __________________________________________________________________________________

Name of creditor / authorised person: __________________________________________________

Signature: _____________________________ Date:__________________________

Please complete this document and return with any supporting documents by no later than 17 June 2020 for your vote to be

counted, by email to Nathan Bleakley at [email protected]. If you have any questions please call +61 7 3222 0449.

Completed forms may also be sent by post attention to Nathan Bleakley at GPO Box 1008, Brisbane QLD 4001, although you should ensure

this is sent with sufficient time to arrive by the date the vote closes, which we cannot guarantee.

#3163597v1

20 May 2020




Proposal for creditor approval

“That the future remuneration of the Joint and Several Liquidators for the period from 18 May 2020 to finalisation, is

determined at a sum equal to the cost of time spent by the Joint and Several Liquidators and their partners and staff,

calculated at the hourly rates as detailed in the Initial Remuneration Notice provided to creditors, that may be increased at a

rate of up to 5% at 1 July each year (rounded to the nearest $10), up to a capped amount of $25,000.00, exclusive of GST,

and that the Joint and Several Liquidators can draw the remuneration from available funds as time is incurred on a monthly

basis or as funds become available.”


The proposal is being put to creditors to approve remuneration as allowed under law. The proposal if passed will minimise the cost of approving remuneration to the Creditors Voluntary Liquidation, which would otherwise require a meeting of creditors or court application to be approved – which can be costly. Remuneration of the liquidators is to be paid in priority to other claims under the Corporations Act. This ensures that when there are sufficient funds, the liquidators receive payment for the work done to recover assets, investigate the Company’s affairs, report to creditors and ASIC and distribute any available funds. Even if creditors approve our remuneration, this does not guarantee that we will be paid, as we are only paid if sufficient assets are recovered. If sufficient assets are recovered, there may be funds available to pay a dividend to creditors, however this is affected by many variables including the value of assets and complexity of realising those assets, the level of creditors enquiries, the priority of claims (including employee claims) and the total value of creditor claims to be admitted to participate in a dividend. My remuneration approval report, which has been provided with this notice provides more detailed information on remuneration I am seeking to be approved.

Vote on proposal










#3163597v1

Creditor details




Address: __________________________________________________________________________________


Signature: _____________________________ Date:__________________________





#3163597v1

20 May 2020





“That the disbursements of the Joint and Several Liquidators, their partners and staff for the period 9 March 2020 to 17 May

2020 be approved for payment in the amount of $2,330.10 plus GST and that the Joint and Several Liquidators can draw the

disbursements immediately or as required.”


Disbursements have a priority to other claims under the Corporations Act. Certain internal disbursements, being the reimbursement of costs related to the Creditors Voluntary Liquidation incurred by my firm and stuff, must be approved by creditors under the law. These disbursements are charged on a reasonable commercial basis, the details of which are outlined in detail in my Remuneration Approval Report. The proposal if passed will allow the reimbursement of reasonably commercial expenses, properly incurred for the Creditors Voluntary Liquidation to my firm and its staff.

Vote on proposal










Creditor details




Address: __________________________________________________________________________________


Signature: _____________________________ Date:__________________________

#3163597v1





#3163597v1

20 May 2020





“That the future disbursements of the Joint and Several Liquidators, their partners and staff for the period 18 May 2020 to

finalisation of the liquidation be approved as per the schedule of costs below, to a capped amount of $1,000.00 plus GST and

that the Liquidator can draw the disbursements immediately or as required.”


Courier At Cost








Disbursements have a priority to other claims under the Corporations Act. Certain internal disbursements, being the reimbursement of costs related to the Creditors Voluntary Liquidation incurred by my firm and stuff, must be approved by creditors under the law. These disbursements are charged on a reasonable commercial basis, the details of which are outlined in detail in my Remuneration Approval Report. The proposal if passed will allow the reimbursement of reasonably commercial expenses, properly incurred for the Creditors Voluntary Liquidation to my firm and its staff.

Vote on proposal










#3163597v1

Creditor details




Address: __________________________________________________________________________________


Signature: _____________________________ Date:__________________________





13 May 2020

#3163597v1





“That the creditors direct the Joint and Several Liquidators to apply to ASIC when appropriate or upon finalisation of the

liquidation for consent to destroy books within the retention period in accordance with IPS 70-35.”


The proposal is being put to creditors to allow records to be destroyed upon finalisation of the liquidation, with ASIC consent. Liquidators are otherwise required to maintain all books for 5 years which represents a significant cost to the liquidation. By passing the proposal, and subject to ASIC’s consent, much of this cost can be avoided. The Liquidator will still retain information, and notably financial information, required to be retained for certain periods under other laws, e.g. taxation laws.

Vote on proposal










Creditor details




Address: __________________________________________________________________________________


Signature: _____________________________ Date:__________________________






Proof of Debt

Appendix G

FORM 535 subregulation 5.6.49(2)

Corporations Act 2001

FORMAL PROOF OF DEBT OR CLAIM (GENERAL FORM)

To the Liquidators of Bullzye Pty Ltd (In Liquidation) ACN 114920311 (the “Company”)

1. This is to state that the company was on 9 March 2020, and still is, justly and truly indebted to:

full name, ABN

and address of the creditor and, if applicable, the creditor's partners. If prepared by an employee or agent of the creditor, also insert a

description of the occupation of the creditor) for dollars and cents

Particulars of the debt are:

Date Consideration Amount Remarks (state how the debt arose) $ (include details of voucher substantiating payment)

2. To my knowledge or belief the creditor has not, nor has any person by the creditor's order, had or

received any satisfaction or security for the sum or any part of it except for the following:

(insert particulars of all securities held. If the securities are on the property of the company, assess the value of those securities. If any bills

or other negotiable securities are held, show them in a schedule in the following form).

Date Drawer Acceptor Amount Due Date $

3. Signed by (select option):

󠆤 I am the creditor personally.

󠆤

I am employed by the creditor and authorised in writing by the creditor to make this statement. I know that the debt was incurred for the consideration stated and that the debt, to the best of my knowledge and belief, remains unpaid and unsatisfied.

󠆤

I am the creditor's agent authorised in writing to make this statement in writing. I know the debt was incurred for the consideration stated and that the debt, to the best of my knowledge and belief, remains unpaid and unsatisfied.

Signature: Dated:

Name: Occupation:

Address:

RECEIVE REPORTS BY EMAIL Yes No

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