Keddie creditors shedding trustees

Casa Barakat, Roseville Chase
Photo: SiN Images

CREDITORS of the former partners of legal firm Keddies want to slash the number of bankruptcy trustees in a bid to reduce fees - and who can blame a former Keddies client for being a little testy on that topic?

The first step towards paring the four trustees back to one will be taken on December 19 when former partner Tony Barakat submits a proposal for a composition.

The composition - under section 73 of the Bankruptcy Act - comprises an offer by Barakat of $2 million.

Donnelly halves Slater & Gordon's Keddies claim

FERRIER Hodgson’s Max Donnelly has admitted barely half of a near $1 million proof of debt filed by law firm Slater & Gordon (S&G) against the bankrupt estate of struck-off solicitor Russell Keddie.

Donnelly, who was appointed trustee in bankruptcy to Keddie’s estate on June 15, is aiming to pay an interim dividend before Christmas. 

But the claims Donnelly is prepared to accept for interim distribution purposes and the amount the high profile lawyers are claiming is far from aligned. 

“As each day goes on, they (S&G) get a new claim and they are claiming under the indemnity, Donnelly explained.

“They said: ‘we know we might get sued on 20 cases but it might be a million’.

“I’ve said: ‘I’m only going to admit you for what you’ve actually paid out. I don’t care what you might get claimed’.

Keddie queries Donnelly's determinations

 Bankruptcy veteran Max Donnelly
Photo: Ferrier Hodgson 

STRUCK-off solicitor Russell Keddie applied for a review of $1.26 million in creditor interest claims just days before his bankruptcy trustee sought authorisation to pay a pre-Christmas dividend.

In a letter to Max Donnelly, Keddie advises his trustee that he’s filed an application in the Federal Magistrates Court to preserve the 21-day time limit a bankrupt has to challenge trustee determinations of proofs of debt.

The letter – dated November 30 - is signed by Keddie’s lawyer Sally Nash. Accompanying it is a copy of the application and a supporting affidavit dated November 27.

EXCLUSIVE: Ayliffe fends off bankruptcy bid with revised proposal

IT'S the insolvency equivalent of a miracle ball - a debt agreement lobbed onto the chest of a creditor after the first pass went to grass - and Roosters legend Royce Ayliffe might just have thrown it.

The NRL judiciary stalwart is due to front at a creditors petition hearing in the Federal Magistrates Court on December 19. 

The petition was filed by ACM Group on November 12 after the Vieira family's debt collection agency rejected Ayliffe's original Part IX debt agreement proposal to satisfy $40,000 in credit card repayment obligations. 

That first proposal was popped up by Ayliffe in September. See:  NRL's Ayliffe facing debt dilemma

But the former league star may have fended off the December 19 hearing - which could see him bankrupted - by lobbing to ACM a revised, and possibly acceptable offer just this week.

SiN's mail is that Moore Stephen's Trent Hancock has been approached to act as trustee to Ayliffe's Part IX version two. 

At time of writing the arrangement had not been formalised. Nor had a second Part IX appeared on the register of the official receiver.

SiN understands the 56 year old Ayliffe has been repaying the debt in installments since creditors won judgment in the Downing Centre Local Court on June 16, 2010.

Ayliffe did not reply to emailed requests for comment and would not take SiN's calls.

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