Spotlight on Hospitality: Project Profile: Peak Invest Group

The Court Receivers worked with Insolvency Practitioners from Hall Chadwick, who were appointed as Administrators and later Deed Administrators of the Operating Entities of the Hotels, and with the First Ranking Mortgagee (the Commonwealth Bank) in relation to the joint sale of the Landholdings and Hotel businesses for each hotel.

With the assistance of Sam Handy - HTL Property at HTL Property, the Receivers took the Hotel Assets to market in two marketing traches, incorporating a metropolitan and a regional hotel asset in each tranche.  Tranche One comprised the sale of the Rose & Crown and Corrimal Hotel. Tranche Two comprised the sale of the Crown Hotel and North Nowra Tavern.  Ultimately, the sale process resulted in a broad range of offers well above valuations, and the First Mortgagees were paid quickly.

As can be the case in these type of cases (particularly where the appointees to the Property Owning Entities, and Operating Entities are different, and with different creditors,  there was some work required in balancing the views of Purchasers, and the various Vendors, in relation to the split of sale proceeds between Land and Business components, and who the beneficiaries of those funds would be, along with the impact on the timing of distributions.  

UNITHOLDER DISTRIBUTIONS

The Trustee Entities were party to various disputes between investors, former managers, operating entities and so on.  In this case, it was important to establish a working dialogue with the various investor groups and other stakeholders, in order to understand the many issues involved in the disputes, and the allegations the various investors have made concerning the Trustee Entities, resulting in various termination events and ultimately our appointments.  
Ultimately, after significant litigation and other delays, unitholders received their entitlements during 2023 and 2024, with the final entitlements for the remaining Trustee company finalised in early 2025.  The Receivers were assisted by Partners from Maddocks, and principally Maddocks | Danielle Funston.  

REFLECTIONS ON STAKEHOLDERS EXPECTATIONS

Managing Stakeholder Expectations in Insolvency

One of the critical aspects of these appointments was to (a) demonstrate control of the process early, by ensuring the proper and effective marketing of the hotels and (b) ensure beneficiaries understood the delays and requirements associated with receiving their returns.  

We achieved this by:

• Ensuring the legal processes for the future of the Trustee Companies (liquidation) was processed quickly and without fuss, so parties knew where they stood;
• Ensuring First Mortgagees and other Practitioners were on Board with the sale strategy and the appointment regime;
• Providing an appropriate but balanced level of control over processes, where there were experienced Hotel Operators managing day to day activities;
• Initiating a regular dialogue with the Investor Parties so that expectations and return timetables, and the impact of litigation, was understood;
• Responsible and positive participation in litigation and related activity.

Managing Expectations 

Throughout these appointments, stakeholders ranging from creditors to shareholders/unitholders very actively sought clarity on their rights and the outcomes they could expect. Our team worked diligently to maximise value. Creditors received more than 100 cents on the dollar (including statutory interest), and, ultimately, shareholders (as unitholders) began receiving distributions from the realised property pool.

CONCLUSION:  EFFECTIVE STAKEHOLDER MANAGEMENT

Running the sale process well and aligning the interests of parties was critical, but also important was the approach to ensuring the parties entitled to those proceeds could confidently see a pathway to recovery.  Things to bear in mind include: 

1.  Transparent Communication: Regular updates through circulars and consistent email correspondence keep stakeholders informed and engaged.
2. Aligning Interests: Identifying common goals, such as expedited resolution or maximising returns, fosters collaboration among stakeholders.
3.  Professional Etiquette: Maintaining clear, respectful communication helps build trust and ensures stakeholders feel valued.
4. Engaging Key Representatives: Proactively working with influential stakeholders or representatives strengthens relationships and streamlines decision-making.
5. Feedback Mechanisms: Monitoring inquiries and addressing recurring questions in future updates improves clarity and stakeholder satisfaction.

By addressing stakeholders’ concerns with professionalism and transparency, insolvency practitioners can successfully navigate even the most complex cases.

SECTOR SUMMARY

Despite recent economic headwinds, the Australian hospitality sector-encompassing pubs, hotels, and accommodation venues, continues to show signs of resilience across NSW, QLD, and VIC. In 2025, investor confidence is being buoyed by an anticipated decline in interest rates, strong transactional activity in both metropolitan and regional locations, and a rebound in domestic and international tourism. Simultaneously, operators face evolving regulatory pressures, including tighter controls on gaming advertising and venue compliance, as well as trading reforms introduced under the NSW Government's Vibrancy Reforms initiative in certain locations. Together, these shifts are reshaping asset values, driving strategic divestment, and setting the stage for operational and capital restructuring across the sector.

OUR EXPERIENCE

Wexted Partners have considerable experience in the managing complex cases in the Club and Licensed Hotel sector over many years.  We work constructively with Management and Operators to ensure appointment objectives can be achieved with minimal fuss. 

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