Privium Vote to Remove Administrator Deadlocked

In round one of the the 12 round "Battle of Brisbane", Privium creditors delivered an epic blow that left the glass jawed FTI reeling, groggy and flailing but they had a trump card to counter their inability to take a left jab, right cross. They had a knuckle duster hidden in their glove.

In round 2 they came out swinging.

There were two resolutions at Monday 29th November 2021 Privium creditors meeting.

1) To appoint a committee of Inspection (COI).

2) To remove the administrators and appoint someone else as administrators of the company (Privium Pty Ltd)

MOTION TO REMOVE THE ADMINISTRATOR OF PRIVIUM PTY LTD

The Vote 

Creditors voting for the motion to change the administrator, won the vote (for) 69 votes @ 79% to (against) 18 votes @ 21%. An overwhelming majority.

The Dollar Value

1. The dollar value of creditors for the motion to change the administrator was 4 million - 15%.

2. The dollar value of the votes against the motion to change the administrator was 25 million - 85%. 

FTI accepted the value of 23 million from the largest secured creditor, the Bank of New York Mellon (BNY).

"The bank holding company provides financial services and offers investment management with more than a trillion in assets under management."

The motion was deadlocked;

• Aussie creditors winning the vote 
• Huge American investment bank winning the dollar value

Casting Vote

FTI  Joanne Dunn declined to exercise her casting vote. Pursuant to Rule 75-115 (5) of the Insolvency Practice Rules (Corporations) 2016, because the Administrators abstained from using their casting vote, the resolution did not pass.

If FTI didn’t accept the 23 BNY secured creditor vote, Creditors win the motion 4 million to 2 million.

It was a great effort by a large group of angry creditors to come together in such a short time to win the vote by such an overwhelming margin, only to be deadlocked by the might of the US secured creditor, the Bank of New York Mellon. 

23 million dollars to a bank with in excess of a trillion dollars in assets is no more than pocket change, beer money to them.

The subbies, mums and dads, young first home buyers and investors don’t know how this works. Most of them are so far removed from the insolvency world that some of them weren't aware who the creditor was until I told them - “you are the creditor”. But they are getting savvy and don't like what they see here. Its only a matter of time.

There was circa 1 million left in various Privium entity accounts. When asked, the administrator estimated their costs for the first 10 days was approx 300k.

This is a massive job with BNY holding security over 8 or the 9 companies in administration.

FTI we only wanted one, you would still have had 8 companies to play with, next time don't be so greedy. That behaviour, you are not setting a good example for children.

When it was reported that this was a 20 million administration, soon to be liquidation, we said it would be much larger than that, it always is and the most recent reports say its 80 million but it won't stop there either.

At a glance there is plenty of "low hanging fruit" such as vehicles and property assets which will be disposed of in due course.

That was only the first two rounds of a 12 round battle, David is still standing with his slingshot armed and ready so Goliath should be on notice, it's not over yet.

Foot note: Oh, by the way, strange thing, not pointing any fingers but I couldn't speak at the meeting, my microphone had gremlins in it so I had to type any questions I had.

Subbies join here and access our private members forum, we offer two membership options, 6 or 12 months. We make exceptions for some suppliers that we trust and who call us first but in general, if you are not a subcontractor, don't bother joining. We have our ways of weeding you out before you can access the forum and we are under no obligation to refund your membership fee.

Note; Builders need not apply as a refusal may offend.