ASIC records show that a series of seven meetings took place with vested parties in Reacon Australia between March 17th and April 8th, when it entered administration. Reacon Australia is now subject to a liquidation order, following the May 9th Federal Court ruling, but can continue to trade pending any appeal..
Extract from DIRRI ( Declaration of Relevant Relationships & Indemnities) regarding Reacon Australia Pty Ltd, now in Liquidation.
On April 9th, Mr Kahn resigned as a director of Reacon Australia and Innovis Media Pty Ltd, Mr Gulati's company, acquired the Reacon Group and subsidiaries, with Reacon Australia already in voluntary administration and Mail Marketing Works still trading, but now in VA with a 2nd creditors meeting due on Friday 16th.
Pre-packaged administrations are lawful in Australia and can sometimes lead to positive outcomes for creditors over time. There is not, nor ever has been, any suggestion of illegal phoenix activity.
What is being investigated by Cathro Partners is the possibility that large sums of money, that should otherwise be available to creditors, may have been 'misappropriated.'
Reacon Australia Pty Ltd (in Liquidation) continues to trade, as it did under External Administration with all new debts personally guaranteed by the liquidators Cathro Partners. From the Federal Court ruling date of May 9th, there are typically 28 days for which to lodge an appeal, if any.
Regarding the related Mail Marketing Works Pty Ltd, in Administration, with no DOCA proposed - the second meeting of creditors is tomorrow, Friday 16th May nia Microsoft Teams link: https://core.ips-docs.com/ (access: MAILMA01) at 4:30pm AEST. Parties must register their intention to attend, or proxies, by 5:00pm AEST today, Thursday 15th May.
In the Administrators' report of May 8th, Mail Marketing Works' largest outstanding debt is shown as related party Reacon Australia Pty Ltd, at $1,185,439.00. It appears that Mail Marketing Works performed work for Reacon Australia, invoiced it for this work over time, but never received payment.
Additional comments or observations can be emailed to Andy McCourt HERE
