REYNOLDS WINES LIMITED (ASX.RYW)

company deregistered 20/02/2012

liquidators advise that various appeals have been lodged by the defendants in relation to the decision handed down by Justice Palmer (see note of 23/11/2007) - the Liquidators have also lodged an appeal in relation to the inquiry ordered by Justice Palmer - these appeals are not expected to be heard until towards the end of the year

Justice Palmer hands down his judgment in the insolvent trading proceedings relating to the liquidations of Reynolds Wines Limited and Reynolds Vineyards Pty Ltd - essentially the Judgment is in favour of the plaintiff and against the directors but we note that the Justice observed that a "disquieting aspect of the litigation" is that "the true beneficiaries of this huge piece of litigation are a litigation funder, the Liquidators and their lawyers, not the creditors" (and of course shareholders are always last on the list and were never going to benefit from this action) - a full copy of Justice Palmer's findings can be accessed online here

the insolvent trading proceedings relating to the liquidations of Reynolds Wines Limited and Reynolds Vineyards Pty Ltd commenced in the NSW Supreme Court on 31 January 2007 and are expected to run until at least the end of February - a judgement would not be expected for some time after that - the Liquidators intend to report to and call a meeting of creditors in the near future to update them on the status of the liquidations

at a hearing in the matter of insolvent trading the court orders that affidavits in defence have to be filed by 27 May in anticipation of a hearing on 30 May 2005 (liquidators believe the prospect of any return to unsecured creditors from the liquidation will remain uncertain for many months, if not years)

according to a release by IMF (Australia) Limited, it is funding an insolvency action against the company with a maximum claim value of $10m and it expects the case to be completed by 31 December 2005

delisted following failure to pay its annual listing fee

reports that litigation funder IMF is investigating the possibility of backing a class action by investors who responded to a capital raising that was based on a false prospectus

Court freezes assets of former Deputy Chairman Peter Poolman pending the outcome of insolvent trading action against him and former chairman Malcolm Irving

the business of the company is sold as a going concern by the Receivers to Asset Wine Holdings Pty Ltd

a loss declaration has been issued and the capital loss can therefore be claimed in the financial year the declaration is issued

not at all surprising to see the directors being sued for insolvent trading (see our note of 26/11/2003 below) - litigation funder IMF Australia is bankrolling the action

there is a possibility that legal action aimed at recovering funds for the benefit of creditors and shareholders may occur, it is not yet possible to rule out some return to shareholders - the liquidators are attempting to expedite matters as quickly as possible and hope to clarify the position for shareholders by 30 June 2004

liquidators have nothing further to report at this stage - a number of directors of the company have been subject to public examination in the High Court and the liquidators are currently analysing the information thereby acquired

appears as if liquidation was the decision at yesterday's meeting - if as predicted there is nothing left for unsecured creditors or shareholders, how did we have a solvent company when it last traded on 5 August 2003, less than 4 months ago? - hopefully at the very least this question will be answered in the fullness of time

administrators announce creditors meeting for 25 Nov - they are recommending liquidation, believing that the best option is to seek funding for public examinations that may assist in recovering funds for creditors

second meeting adjourned for 60 days to allow time for two parties to develop proposals for restructuring the company - if either are not approved by creditors the company will go into liquidation

second meeting of creditors delayed to September 26 because of the complexity of Reynolds' affairs - further time is required to provide an opportunity for adequate investigations and for any proposals for deeds of company arrangement to be submitted and reviewed before reporting to creditors

reports that there are two syndicates being formed hoping to acquire assets of the company

S Kershaw and J Hayes of KPMG appointed Receivers and Managers by a secured creditor (reported to be ANZ) pursuant to the terms of a mortgage debenture - control of the trading activities has been transferred to the Receivers and Managers who are continuing operations

G Hall and P Carter of PricewaterhouseCoopers appointed joint administrators - they will undertake an urgent financial assessment of the business and report to creditors at a meeting on 11 August

shares suspended from quotation

the company has been involved in a long running dispute with the Australian Tax Office - directors determined that the uncertainty surrounding this issue would impact on a proposed private placement to raise $10m in working capital by way of a convertible notes issue - the Tax Office has said it will enforce assessments (issued and to be issued) totalling more than $10m

shares regain quotation 4 March 03 and again on 24 March 2003 (following an earlier failure to lodge half year accounts)

in the Financial Review, Pierpont retraces the sorry history for investors in this company and its various schemes - Pierpont's article is available at www.pierpont.com.au

name changed from Cabonne Limited