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4 April Second Creditors’ Meeting

On 4 April 2018, SurfStitch creditors voted to adopt the EziBuy proposed Deed of Company Arrangement (EziBuy DOCA).

The mechanics of the EziBuy DOCA will be the subject of future directions by the Court as early as 3 May 2018.

Orders are expected to be made by Justice Stevenson at that time to finalise the case against SurfStitch, and may include orders for the method and procedure by which settlement amounts will be paid to class action claimants.

The EziBuy DOCA comprises two main parts of interest to class action members:

  • cash – between $3.4 million and $4.3 million; and
  • convertible notes intended to be convertible into shares in the new merged EziBuy/SurfStitch entity estimated to be worth between $6 million and $20 million. The conversion must occur inside 3 years.

Details of the proposal are contained in the administrators’ report to creditors dated 16 March 2018 found on this website on the home page.

Glenn McGowan QC

Partner & Chief Counsel

Rebecca Di Rago

Lawyer

VIC-Surf-Stitch@gadens.com

This update does not constitute legal advice and should not be relied upon as such. It is intended only to provide a summary and general overview on matters of interest and it is not intended to be comprehensive. You should seek legal or other professional advice before acting or relying on any of the content.

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6 April 2018 Directions Hearing & Return of Subpoenas against ASIC & KPMG

On 9 March 2018 we issued:

  1. A motion for further documents (Second Access Motion) from the SurfStitch administrators;
  2. ASIC  subpoena – for transcripts of examinations by ASIC of the company directors and officers from its investigation commenced in around October 2016; and
  3. KPMG subpoena – for copies of all advices, audits and reports conducted by KPMG in relation to the SurfStitch announcements made to the market between August 2015 and August 2016.

ASIC and KPMG have since produced documents to the Court under the subpoenas. Those documents will be reviewed by us in compliance with a strict timetable set by the Court, granting access to the parties to this proceeding and other affected parties. The timetable was negotiated with all affected parties, and allows for any objection/claim for privilege to be made by the defendants and the affected parties.

3 May 2018 Directions Hearing

We return before Stevenson J on 3 May, at which time we expect His Honour will give directions to finalise the pleadings against second defendant Cameron and join any further parties as defendants.

We will continue to keep class action registrants informed of further developments.

Please contact a member of our team should you have any queries.

Glenn McGowan QC

Partner & Chief Counsel

Rebecca Di Rago

Lawyer

VIC-Surf-Stitch@gadens.com

This update does not constitute legal advice and should not be relied upon as such. It is intended only to provide a summary and general overview on matters of interest and it is not intended to be comprehensive. You should seek legal or other professional advice before acting or relying on any of the content.

Continue Reading