Justin James Cadman’s registration was cancelled on 13 June 2018, following orders made on 8 June 2018 in the Federal Circuit Court of Australia, resulting in Mr Cadman being declared bankrupt and an insolvent under administration.
On 19 June, ASIC appointed replacement liquidators to the 15 vacant external administrations previously administered by Mr Cadman.
“ASIC has moved quickly to exercise the new powers under the insolvency regime to appoint a replacement liquidator and appreciates the assistance of the replacement liquidators Ms Moira Carter of BRI Ferrier NQ and Mr Todd Kelly of BDO, North Queensland,” said ASIC commissioner John Price.
In early 2017, the Deputy Commissioner of Taxation made an application to wind up Mr Cadman’s Cairns-based firm, McLaren Knight, which provided accounting and insolvency services.
Liquidators have been in the regulatory spotlight since ASIC’s new powers came into effect in March last year.
The industry is also up for a tough time under ASIC’s new funding model. Registered liquidators will have to pay a minimum of $2,500, with a further $125 per appointment and notifiable event.
“The ASIC industry funding model fees for liquidators will be a minimum of $2,500, for someone who takes no appointments in a year, but may stretch to tens of thousands for a high-volume practitioner,” said Australian Restructuring Insolvency and Turnaround Association (ARITA) chief executive John Winter, earlier this year.
“The best way to articulate the cost is that it will be, on average, over $14,000 per liquidator. Some mid-sized firms have estimated the cost of the industry funding model to them may be over $750,000.
"[Liquidators] have no idea of the quantum of the fee that they may be incurring as they go for up to 18 months after actually incurring it ... and the delay in being able to ‘realise’ the fee means that liquidators aren't able to charge that fee to the appointment that caused it."