ISG Management Pty Ltd (Administrators Appointed) (ISGM) is a workforce management company that has held (and may still hold) contracts with Telstra, Foxtel and NBN Co amongst others. ISGM is a subsidiary of Tandem Corporation.
In November 2018, Shine Lawyers filed a class action against ISGM on behalf of telecommunication workers who, between 2011 and 18 June 2020, may have suffered financial losses working for ISGM (including under what may have been described as sub-contracting arrangements), in particular loss of employment entitlements.
IMPORTANT UPDATE TO GROUP MEMBERS
On 1 July 2021, ISGM and its parent company Tandem Corporation, as well as a number of related companies, were placed into voluntary administration by their directors. The Federal Court of Australia has ordered that as a result of ISGM entering into administration, the present court orders (for the preparation of the hearing of the case) be suspended.
It has since been confirmed that Matthew Caddy and Keith Crawford of McGrathNicol have been appointed as the voluntary administrators of ISGM (see webpage https://www.mcgrathnicol.com/creditors/tandem-group/).
What is Voluntary Administration?
When a company is insolvent, or likely to become insolvent at some future time, its directors can place it into voluntary administration. An independent ‘administrator’ is appointed effectively to manage the company, take control of its assets and investigate its affairs. The directors’ powers are suspended during the administration. As part of the administration, creditors (that is, people who are owed money by the company) get to decide on the future of the company.
Group Members’ opportunity to attend and vote at Creditors Meeting
As part of the administration process, the administrator is required to hold two meetings of creditors. The first meeting, which is largely procedural, occurred on 13 July 2021.
The second meeting is more substantive. At this meeting, creditors will likely determine the future of the company. Generally, creditors get to vote in favour of one of three things; either:
- Putting the company into liquidation (which means, basically, its assets will be sold and it will be wound up);
- Approving any proposal to reorganise and/or compromise the company’s debts, including, if possible, to permit it to continue trading afterwards (called a “Deed of Company Arrangement”); or
- That the administration should end and the company be returned to the control of its directors. This can only be achieved where the company is able to pay its debts as and when they fall due.
What this means for ISGM Group Members
If you are a Group Member of this class action, you are considered a creditor and have the opportunity to attend and vote at this meeting, and ultimately contribute to the future of ISGM.
In order to vote at the meeting, you must submit to the administrator a Proof of Debt to substantiate your claim. By submitting a Proof of Debt, creditors will also make their claim known to the administrators and become entitled to receive information and updates from the administrators, including any reports about the affairs of the company, the progress of the administration and the options available to creditors.
Creditors may choose to attend the meeting of creditors themselves, or appoint someone (known as a ‘proxy’) to represent them.
Offer of assistance to prepare and lodge Group Members’ Proofs of Debt
If you would like to vote at the second creditors’ meeting, and if you want to have your claim against ISGM considered by the administrator, a Proof of Debt form must be lodged with the administrator before the second meeting of creditors. At this stage, we anticipate the second meeting of creditors will take place on Thursday 5 August 2021. This means that the completed Proof of Debt must be lodged with McGrathNicol by Wednesday 4 August 2021.
Shine Lawyers can represent you in the administration process and can vote on your behalf at the creditors meeting. Should you wish to engage Shine Lawyers for assistance, you are invited to register via the ‘Register Now’ button below.