The Beechwood Administrator

Links:                          
ASIC - Voluntary Administration: Guide for creditors
ASIC - Independence of Administrators: Guide for Creditors
ASIC - Voluntary Administration Guide for employees 
IPAA - Voluntary Administration

ASIC - Approving Fees (for Administrator): Guide for Creditors
IPAA Creditor Info Sheet - Approving Remuneration in External Administrations

Important News for Creditors:

Beechwood Final Creditors Meetings held Thursday 17 July 2008
This meeting received an update on the sale of Beechwood and clarified what happens next for consumers and creditors- please click here to see Catherine Cusack Creditors Meeting Report.
The Meeting was adjourned until Thursday 14 August. The Administrators' final recommendations to creditors are on hold, prnding next week's decision on the sale.

14 August - adjourned Creditors Meeting will resume, venue likely to be in Castle Hill. More details as they become known.

A key issue being investigated by the Administrator is the "Web of loans" between Mr King's associated companies and Beechwood Homes.

Are businesses associated with Larry King creditors or debtors to Beechwood Homes?

Look at the "WEB OF LOANS"  More information about debts owed to Beechwood by Mr King's associated companies can be found by clicking HERE.

It seems they are both. Beechwood loaned $42.35M to businesses associated with Mr King but only $33.96 million was loaned back. The loans left Beechwood $8.39 million short. 
In addition the Administrator Reports show $52.18 Million spent by Beechwood on a "forgiven" loan, a written off debt and transaction costs with a business associated with Mr King.

Three companies associated with Mr King are on the Creditors Committee: Dramcom, Waterview Developments and Beechworth Homes. Waterview actually owes over $4 million to the Beechwood Homes group. This Committee received a confidential briefing from the Administrator - the Minutes show what was discussed.

Administrator's Proposed Fees: Beechwood unsecured creditors are forking out $2.2 million for the costs of the Receivership and Administration. See how this is broken up and why it is so expensive.

About Beechwood's Voluntary Administration
On 13 May 2008 Mr Larry King placed his Beechwood Homes business in Voluntary Administration, and  appointed Armstrong Wily as Administrators.

Beechwood Homes is the trading name for 3 companies - LED Builders Pty Ltd (based in Liverpool); LED North Coast (based in Swansea) and LED South Coast (based in Nowra). Armstrong Wily have prepared seperate reports for each of these 3 companies.

The initial meeting of creditors held at the Masonic Centre in Sydney on 23 May had the opportunity to appoint a new Administrator, and a ballot of Creditors was held. Armstrong Wily were re-elected Administrator with the support of companies associated with Mr Larry King (known as "related parties").

Mr King's companies are represented on each of the three Creditors Committees.  Beechworth Homes Pty Ltd (Sydney Creditors Committee); Waterview Developments Pty Ltd (North Cost Creditors Committee) and Dramcon Pty Ltd (South Coast Creditors Committee). The sole Director of Dramcon is Larry King. See:
ASIC DRAMCON notification of resignation of Pamela King as a Director on 1-5-08
ASIC DRAMCON notification of change of address and Director Resignation ((F A Maruca) 9-11-07

The Final Report to Creditors were posted on 10 July 2008 and were discussed at the Final Meeting of Creditors at Castle Hill on Thursday 17 July 2008. The Administrator was unable to finalise recommendations to the meeting because the the outcome of efforst to sell the business is not known.  The meeting was adjourned for 4 weeks and will resume on 14 August 2008 at a venue yet to be announced.

Read the Reports:
Administrator Final Reports to Creditors - (10 July 2008)
L.E.D Builder (Sydney) Pty Ltd 10 July 2008
L.E.D (North Coast) Pty Ltd 10 July 2008
L.E.D (South Coast) Pty Ltd 10 July 2008

Armstrong Wily - Archive

Minutes of Creditors Committee Meeting 18 June 2008 (For all 3 LED Companies)

Letter to Creditors advising delay in final report to 10 July 2008 12 June 2008 

Minutes LED (Sydney) First Creditors Meeting - Masonic Centre, Sydney 23 May 2008
Minutes LED (North Coast) First Creditors Meeting - Masonic Centre, Sydney 23 May 2008
Minutes LED (South Coast) First Creditors Meeting - Masonic Centre, Sydney 23 May 2008

Administrators' Interim Report to Creditors 20 May 2008
(distributed 23 May 2008 to creditors)

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