PPB Advisory was appointed initially as Receivers and Managers of the Casino and Resort following a court application by one of its shareholders.
The company had incurred substantial trading losses and was about to have its casino license suspended.
PPB Advisory’s investigations showed that the company was insolvent and, as a result, the Court ordered that it be wound up. Complex issues encountered during the receivership and liquidation included:
- Numerous challenges to PPB Advisory’s appointment were made by the directors of the company, including a challenge to the High Court. These legal challenges were a key reason for the liquidation extending more than 10 years.
- Considerable work was required to determine outstanding employee entitlements. PPB Advisory worked closely with the Union of Christmas Island Workers to resolve employee entitlement issues.
- The sale of the resort was protracted due to difficulties in negotiating an assignment of the crown lease with the Commonwealth Government, and purchasers’ uncertainty about whether a casino could be re-established on the island.
Given the considerable public interest in the sale process, and the importance of the Resort to the Christmas Island economy, the sale process was ultimately the subject of a Parliamentary enquiry.
The casino and resort were eventually sold to an aerospace company. Employees received their entitlements in full.