-Mackay Goodwin Retains Forum Group Pty Ltd Pending Sale Announcement-
Leading restructuring and insolvency firm Mackay Goodwin has recommended Westpac’s nominee McGrath Nicol replace it as the administrator for 24 companies in the Forum Group for operational efficiency, ensuring all Forum Group businesses are managed under a single administrator for the benefit of creditors.
Westpac has already appointed McGrath Nicol to manage the Liquidation of Forum Finance Pty Ltd, Forum Group Financial Services Pty Ltd, Enviro Pty Ltd and Enviro (Aust) Pty Ltd.
The resolution was passed by creditors at a meeting held this morning, for all companies in the group except Forum Group Pty Ltd, which has been adjourned until tomorrow at 10am (22 July, 2021), pending a sale announcement.
Mackay Goodwin was appointed on 8 July 2021 as Voluntary Administrator of the Forum Group of Companies.
On 21 July 2021, at the meeting of creditors, Mackay Goodwin recommended McGrath Nicol as replacement administrators as the firm has been chosen by Westpac, which has the most significant exposure in the Group. The creditors accepted the recommendation and appointed Jason Ireland, Jason Preston and Katherine Sozou of McGrath Nicol as the replacement administrators.
Mackay Goodwin CEO Domenic Calabretta says: “Since our appointment, we have been in communication with creditors including Westpac, SMBC (Japanese Bank), and Societe Generale (French Bank).
“We have also assisted McGrath Nicol with their investigations in their Provisional Liquidation of Forum Finance Pty Ltd, Forum Financial Services Group Pty Ltd, Enviro Pty Ltd and Enviro (Aust) Pty Ltd.
“During our control of the Group as Voluntary Administrators, we have continued operating the Autonomous Energy business and Forum Group IT Managed Services business with a view to selling these two businesses.
“Our investigations uncovered Westpac, SMBC and Soc Gen having exposure across the whole Group, and so it was more efficient to hand over the businesses we were administering to the administrators appointed by Westpac.”
By way of an agreement between Mackay Goodwin, Westpac, SMBC and Societe Generale, it has been agreed for all companies in the Forum Group to be administered by one firm rather than two firms.
The resolution for one entity within the Group, Forum Group Pty Ltd, that runs the Managed IT Service business, has been adjourned to tomorrow pending a sale which is very close to completion. Mackay Goodwin are still administrators of this business.
At the time of the creditors’ meeting, the Autonomous Energy business was under negotiation with interested parties. These negotiations have now been handed over to McGrath Nicol.
About Mackay Goodwin: Founded by CEO Domenic Calabretta, Mackay Goodwin is one of Australia’s leading insolvency and restructure businesses and has carved a niche successfully working with stakeholders in distressed businesses. The company handles everything from complex restructures and recoveries for listed companies and on behalf of various financial institutions to advising SMEs and finding the most appropriate business solution that works for all parties.