General News
29 January, 2025
REVEALED: Rodeo administrator to collect $580,000
SV Partners will pocket more than half a million dollars from the collapse of Isa Rodeo Ltd.
Businesses and non-profit organisations owed money after the collapse of Isa Rodeo Ltd will receive about half their money, yet administrator SV Partners will pocket more than $500,000, it can be revealed.
SV Partners director Michael Brennan told creditors last week that he had accepted – on behalf of Isa Rodeo Ltd – a $1 million deal from Mount Isa City Council.
The deal would effectively see $1 million added to the Isa Rodeo Ltd's coffers in exchange for the intellectual property of the Mount Isa Rodeo, including registered business names.
Mr Brennan also recommended to the creditors that the company be made insolvent.
A creditors meeting is due to be held on Wednesday (January 29), however, creditors will likely vote in favour of SV Partners’ recommendation.
Should that meeting go as most expect, it means that unsecured creditors – most of the businesses that are owed money – will receive a dividend of 46 to 52 cents on the dollar, according to SV Partners.
The administrator said it would likely pay creditors by March 24.
However, SV Partners won’t be receiving cents on the dollar.
Appointed by the Isa Rodeo Ltd leadership on October 21 last year when it went into voluntary administration, SV Partners has already racked up $428,307.25 in billable hours and expenses.
Should the creditors vote to go into liquidation, another $100,000 will be added to the tally.
After GST, it means that SV Partners would receive more than $580,000 for its efforts.
The hefty bill is a result of the hourly rate set by SV Partners.
North West Weekly understands Mr Brennan is earning $745 per hour (ex GST) and the report to creditors said he had worked more than 259 hours on the Isa Rodeo Ltd administration process.
SV Partners associate director Patrick Quigley was the next best earner, racking up 138 hours at an hourly rate of $645 (ex GST), while accountant Kendall Bronson contributed 195 hours at an hourly rate of $355 (ex GST).
Following Wednesday’s meeting, the administrator will be eligible to withdraw the money from the Isa Rodeo Ltd bank account for completed work.
The remaining $100,000 (ex GST) will be withdrawn following the liquidation process, creditors were told.
SCATHING OF LEADERS
Despite the fact it was taking a huge chunk of money away from creditors, SV Partners did not hold back in its criticism of Mount Isa City Council and Member for Traeger Robbie Katter in its report to creditors.
SV Partners originally lobbied the council for $1 million, then asked for $2 million when it became apparent that unallocated money would be available from the Mount Isa Transition Fund.
“The other inescapable point of tension that has developed during the administration relates to the rights of the creditors,” Mr Brennan wrote in his summary.
“Creditors will be aware of the unfortunately adversarial position that has developed between the council, the Member for Traeger and the administrators.
“(On November 28) the administrators contacted the mayor (Peta MacRae) to request that she join in publicly advocating that the $2 million unallocated Mount Isa Transition Fund funding be reallocated towards the rodeo. She refused and complained that we had asked for $1 million and that was all she was going to advocate for.
“(On December 2) the State Member (Robbie Katter) expressed the opinion that ultimately there was no need to pay creditors to be able to hold a future Mount Isa Rodeo.
“He stated that he could just stand up a group of locals not associated with the company and start a new event himself without paying the company anything.”
Mr Brennan said the final result was still a better outcome than what creditors were facing.
“Whilst the dilution of the potential dividend is disappointing, the estimated dividend that unsecured creditors would have received had the company been placed into liquidation on 21 October 2024 is estimated to be approximately $0.34 cents in the dollar,” he wrote.