Reason for meeting - In short, our aim is to stop the Liquidator charging $3.16 million in fees after he quoted $300,000. Outrageous!
This money should go to the Subbies and Suppliers that were never paid by CRCG. Chinese directors put fund in so that subbies get 100c in the dollar but instead, it looks like 30c. Act fast.
This information has been provided by 2 CRCG Rimfire Committee Of Inspection members, Mr Rob Berry and Mr Peter Gribble.
Please fill in the attached PROXY FORM for representation at the meeting.
We must receive your PROXY by close of business MONDAY 9 MAY.
Please email signed forms to email@example.com
Rob Berry (Committee of Inspection.
Peter Gribble and Rob Berry
both member of COI for the CRCG Rimfire DOCA
Please action prior to 9th May 2022 if you're in favour of an investigation into the fees charged under the CRCG DOCA by replacing Grant Thornton and the lawyer Clayton Utz.
To CRCG Rimfire creditors
I am one of three members sitting on the committee of inspection (COI) in relation to the CRCG Rimfire DOCA.
I believe that part of my role is to ensure that we manage the costs of the management and administration of the funds that are being put aside for the creditors under the administration of CRCG Rimfire.
I had some major concerns early on in relation to the administration of the DOCA by Grant Thornton, principally when their senior manager left to go on an overseas posting and they brought in a new manager to take over his role. I could see this being a big problem as the knowledge from the first manager will be lost and there would be a large double up cost.
I brought this to the attention of Michael McCann early on expecting there to be at least a reckoning and adjustment to the administration costs.
This has not occurred. If anything, the exact opposite has happened, and I feel that Grant Thornton has utilised the funds that were put up by the Chinese group CRCG in an uncommercial and expensive manner.
Appreciate in his report Grant Thornton have promoted that they took on these court cases and won, but you must appreciate that they have used a considerable amount of financial resources to this end on what I believe was a straightforward position on knocking out an ambit claim by DevCorp and related entities.
All three members of the COI have been working diligently to try and keep the cost reasonable for all creditors. We have tried to negotiate a reasonable position with Grant Thornton on a reduction of their fees and a pullback on the legal fees.
Michael McCann has offered pennies in the adjustments, not real dollars, and 2 COI members believe that there needs to be a full reconciliation of the costs: About $3.16 million spent in total both on legal costs ($2.01 million spent) and the deed administrators’ fees of the CRCG Rimfire DOCA (about $1.15 million spent or pending approval for their fees costs and other expenses).
We looked at several methods to achieve this but, after fruitless negotiations and engagement, two of the members of the COI came to the belief that we feel that this can only be achieved by the replacement of Grant Thornton. A replacement deed administrator can then review the bills and charges against the DOCA funds by both the administrator as well as Clayton Utz and other service providers.
The most effective means of doing this is to replace Grant Thornton with someone who will act commercially and strongly examine the costs for the benefit of creditors.
I consider that Mackay Goodwin would be best placed to fulfil that role.
Aim of replacement administrator
The sole aim of the proposal to appoint a replacement administrator is to review the costs and charges that have drained the $8 million DOCA funds. At present, about 40% of the creditor’s DOCA funds have been paid to Grant Thornton, their lawyers’ Clayton Utz and one or two other advisors.
Two members of the committee of inspection believe this is excessive and justifies their replacement.
Should you need to speak to me more than welcome to call me on my mobile 0410 466 566 or via email Peterg@quantumgroup.com.au.
I would hope that you would consider completing the Appointment of Proxy (voting form) Appendix B attached the notice (a copy is in this envelope and email to myself or Rob Berry if you are in favour of an investigation of the Fees Charged under the CRCG DOCA) and nominate For resolution 1, for the removal of Grant Thornton and the appointment of Dominic Calabretta as a new deed administrator.
Please note that this form needs to be signed by the creditor (if an individual) or by a director (if a company) and that it needs to be returned to me or Rob Berry or Grant Thornton by 4:00pm on 9 May 2022 (best if done earlier).
As time is short - Please email to
Director Linton Developments (QLD) Pty Ltd