Insolvency

Henry Davis York's insolvency group is Australia's largest. It is recognised for its ability to bring a commercial focus to difficult situations, communicate effectively with its clients and to structure transactions innovatively and with a result driven outcome.

We are experts with extensive connections and strong and longstanding relationships within the Australian financial services sector. We work closely with leading insolvency firms along with the legal teams, loans management units, asset restructuring teams and business units of the major Australian and foreign banking institutions doing business in Australia.

We've built an excellent reputation over many years for handling large and complex insolvencies by looking at the whole picture, not just the legal technicalities and for having the breadth and depth of knowledge to provide practical commercial solutions.

Experts in our field

"What is particularly exceptional with HDY is that it is not only the partners that are exceptionally skilled, knowledgeable and trustworthy, there are many layers of staff below partnership level that are equally impressive."
IFLR 1000 2012

In a volatile market our dedicated professionals use their market-leading expertise and insolvency and restructuring knowledge to get effective results. We have had a major role in most of the major Australian corporate collapses. In recent times we have been involved in ABC Learning Centres, Timbercorp, Great Southern, Forestry Enterprises Australia, Commander Communications, Opes Prime, Octaviar and the CrossCity Motorway.

What the Market Says

"When it comes to the Australian restructuring and insolvency market only one firm comes to mind: Henry Davis York"
IFLR 1000, 2010

"Henry Davis York has taken a lead in hard economic times. It has been involved at a strategic level in many of Australia's major collapses and the practice is praised for having 'a deep network in the banking sector".
Asia Pacific Legal 500 (2010)

"High standard of advice across partner and senior associate level." "Experts at what they do, whilst still remaining commercially focused."
Chambers Global 2010

We are experts at giving advice on:

• insolvency risk management and minimisation
• restructuring strategies as an alternative to formal insolvency appointment
• voluntary administrations
• receiverships 
• liquidations
• creditors' rights and obligations.

ABC Learning Centres

The receivership of ABC Learning Centres Receivership is one of the largest and most complex in Australian corporate history. Henry Davis York continues to advise the receivers and the banking syndicate, both domestically and internationally. ABC had over 1,000 childcare centres in Australia, significant childcare operations in NZ, USA, UK and also a smaller interest in childcare Centres in Canada.

Our work has involved assisting the receivers during the lengthy restructuring process after their appointment, including the sale of around 250 unprofitable centres through a Court appointed receiver, obtaining an unprecedented third six month extension of the convening period for the holding of the second meeting of creditors and the sale of around 650 childcare centres in Australia to a special purpose vehicle set up by a number of prominent charities. This transaction involved dealing with a number of key stakeholders including employees, unions, landlords and government, and the resolution of licensing issues across all Australian States and Territories.

Henry Davis York has been assisting the banking syndicate during examinations by the administrator and ASIC on issues related to the collapse of ABC. The firm is also advising the receivers on a number of Cross-Border Insolvency issues.

The ABC receivership won the Insolvency and Restructuring Deal of the Year at the Australasian Legal Business Law Awards 2010

Timbercorp, Great Southern and Forestry Enterprises Australia

We are advising the secured lenders for these three timber/agricultural managed investment schemes which collapsed with billions of dollars of debt and tens of thousands of investors.

Managed investment schemes in Australia are amongst the most complex of structures to unwind. Henry Davis York has market leading recognition for its expertise in dealing with these complex vehicles when they become financially distressed.

Timbercorp, Great Southern and Forestry Enterprises Australia are the three most significant managed investment scheme collapses in Australia. Our roles as lead advisor is symbolic of our position as the "go to" firm for these matters.

Fincorp

We acted for KordaMentha, the voluntary administrators and deed administrators of the Fincorp group of companies which collapsed with debts exceeding $300 million.

The primary part of the assignment was a restructuring of the $200 million property and development portfolio of the group through development agreements, creditor trusts and deeds of company arrangement. The time scale for recovery was very limited (four months) and resulted in external secured creditors being paid in full and over 50 cents in the dollar for the unsecured creditors/investors.

Opes Prime and Lift Capital

We acted for substantial institutional investors in these prime brokerage collapses.

CrossCity Motorway

We advised McGrathNicol, voluntary administrators of the CrossCity Motorway Group, which collapsed with debts of over $1 billion.

OCTAVIAR

One of the first major Australian corporations to collapse during the global financial crisis, the publicly listed Octaviar Group (formerly MFS Limited) went into liquidation in 2008 with debts of A$2.4 billion.

Octaviar was a financial services conglomerate and Australia's largest operator of holiday accommodation. It also owned and operated approximately 50 childcare centres and had substantial offshore investments in New Zealand, Dubai and investments in the USA, Ireland, Germany and the Cayman Islands.

Octaviar continues to be one of the most significant and complex liquidations in Australia.

Henry Davis York has deployed significant resources to Brisbane to service the Octaviar liquidation. The logistical challenges and complexity of this liquidation are highlighted by the fact that there are more than 60 million business records and documents to be reviewed as part of the process of investigating the collapsed group's affairs.

Henry Davis York has also attended to the sale of substantial assets within the Octaviar Group and is adviser to the liquidators on the numerous court proceedings and high profile public examinations in the Supreme Court of New South Wales, examining the current and former directors and officers of the Octaviar Group and to assist with the liquidators' ongoing investigations into its collapse.

Storm Financial

We advised a major bank creditor in relation to its strategy in response to the collapse of Storm Financial.

Commander Communications

We acted for the receivers and managers of Commander Communications Group on all aspects of the receivership including the sale of the Group's telecommunication business interests.