Australian Careers Network

On 21 March 2016, Ferrier Hodgson partners, John Lindholm and George Georges were appointed as Voluntary Administrators of Australian Careers Network Limited and its subsidiaries (the Group) pursuant to a resolution of the Board of Directors. A list of entities within the Group is detailed above.

At the second meeting of creditors on 4 May 2016, creditors resolved that the Group executed a Deed of Company Arrangement (DOCA), with John Lindholm and George Georges appointed Deed Administrators. At that meeting creditors also resolved to put Small Print eLearning Pty Ltd into Liquidation.

The DOCA was executed on 24 May 2016. During the prior of the DOCA, the Deed Administrators have sold the following subsidiaries of the Group:

• Centre of Vocational Education Pty Ltd (ACN 106 434 011) – 26 May 2016
• Training Synergies Pty Ltd (ACN 144 743 117) – 1 July 2016
• Training Experts Australia Pty Ltd (ACN 120 657 267) – 1 July 2016
• Smart Connection Pty Ltd (ACN 086 185 248) – 1 July 2016
• Health Education and Recruitment Services Pty Ltd (ACN 093 414 272) – 1 July 2016
• Pan Bird Pty Ltd (ACN 080 249 369) – 9 August 2016
• International Training College Pty Ltd (ACN – 071 880 450) – 9 August 2016

In addition, on 3 August 2018, the liquidation of Small Print eLearning Pty Ltd was finalised.

The Deed Administrators are continuing to pursue various amounts that are owed to Group entities and Creditors will be updated in due course regarding the progress of the Deed of Company Arrangement and the recovery of these funds owing to Group entities.

The most notable claim being pursued relates to a significant claim for VET FEE-HELP by one of the Group’s subsidiaries. The Deed Administrators have continued to engage in lengthy and protracted correspondence with the Commonwealth Department of Education and Training with a view to progressing the reconciliation and ultimately resolving the question of Phoenix’s entitlements. This process is ongoing.

In addition, the Deed Administrators are dealing with a dispute related to proceedings commenced by the ACCC and the Commonwealth of Australia against Phoenix and Community Training Initiatives Pty Ltd (CTI) in the Federal Court of Australia in which the Applicants alleged that those entities had, among other things, engaged in unconscionable conduct and misleading or deceptive conduct in contravention of the Australian Consumer Law. The Applicants applied for leave to proceed against Phoenix and CTI, which was granted at first instance. Phoenix and CTI appealed from that decision to the Full Court of the Federal Court of Australia. The appeal was dismissed on 29 September 2017. Since the stay was lifted, the Applicants have delivered their lay and expert evidence, but the parties remain involved in a protracted pleadings dispute regarding the articulation of the Applicants' claim in their Concise Statement.

Australian Careers Network Limited (Administrators Appointed) is an ASX listed vocational education provider that owns and operates a number of businesses across Australia.

Information and circulars for creditors.

The Australian Securities & Investments Commission provides resources on insolvency for directors, practitioners, employees, creditors and investors.

Coping with the emotional impact of financial distress.

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