Nik Zuks (DOB 16/07/52) was subject to Bankruptcy Oder on 25 February 2021 and there is now a criminal investigation into his affairs in Bougainville and his former company Wyndale Holdings Pty Ltd.
The Bankrupt Estate of Nikolajis ZUKS
Estate Number: VIC/156/21/7
Previous Reports and Updates
This advice in respect to the Bankrupt Estate of Nikolajis Zuks (“Debtor”) should be read in conjunction with my previous advices and reports, copies of which can be downloaded from the Worrells website (www.worrells.net.au). The following commentary is an update to the outstanding matters set out in my last report dated 30 April 2020, and presupposes that the reader is familiar with that report.
Debtor’s application to review the Sequestration Order
Creditors will recall the Debtor lodged an application to the Federal Court of Australia to review the sequestration order declaring him bankrupt. On 7 May 2021, the Debtor’s solicitor informed me that the application would be withdrawn by the Debtor. The Court subsequently dismissed the application on 11 May 2021 and there has been no further action in this regard.
Statement of Affairs (“SOA”) and Estimated Date of Discharge
Having not received the Debtor’s completed SOA, I applied to the Australian Financial Security Authority (“AFSA”) to issue a notice to the Debtor to file a SOA, pursuant to section 77CA of the Bankruptcy Act 1966 (“the Act”). The Debtor subsequently filed his SOA on 6 October 2021 and the three-year period of his bankruptcy has now commenced. The Debtor’s expected date of discharge is 7 October 2024.
I have identified a number of inconsistencies in relation to assets of the Debtor between the SOA and the information that is known to me. These inconsistencies will be discussed in this advice as well as considered in relation to the Debtor’s obligations and potential offences under the Act.
Outstanding Issues
Motor vehicles
Creditors will recall I identified the following trailers formerly registered to the Debtor, none of which were disclosed in his SOA:
Given the age of the trailers and their respective purchase prices, I do not believe it is commercial to complete further investigations to locate / realise these trailers and / or investigate the disposal of same.
The bankrupt estate is without funds to complete further detailed investigations into this matter. Creditors are referred to the request for indemnity section of this advice below should they wish to consider funding our further investigations. In the absence of further funding from creditors, my investigations into this matter will be finalised.
Real properties
Creditors will recall the following real properties were registered, or formerly registered, in the Debtor’s name:
Creditors will recall the Debtor was a co-guarantor (together with Enzed Nominees Pty Ltd (“Enzed”)) to a loan agreement between Balanced Securities Ltd (“BSL”) and Newcoast Investments Pty Ltd (“Newcoast”). Both Newcoast and Enzed are associated entities of the Debtor. Pursuant to the agreement, BSL was granted a mortgage over each of the properties as security for the loan. Upon Newcoast defaulting on the agreement, BSL took possession of these properties to sell and recover its outstanding debt.
The five properties have since been sold and the net sale proceeds (after realisation costs, rates etc.) of approximately $3.77m were all paid to BSL in reduction of its debt. This amount was not sufficient to satisfy the entirety of the debt and approximately $152,000 remains outstanding. Accordingly, there will be no recoveries for the Bankrupt Estate from these properties.
As the Debtor has paid obligations of Newcoast pursuant to the personal guarantee, claims exist against Newcoast and Enzed. These claims are discussed under the heading “Right of Contribution Claim for Guaranteed Debts” below.
Note 2
The Australian Taxation Office (“ATO”) retains a security interest over this property to secure a debt of $2.1m owed by the debtor. As previously identified, the property is valued at approximately $800,000, accordingly there is no equity available to be realised. Given there is no equity in the property, there will be no recoveries from this source.
I have received correspondence from the Debtor’s solicitor and the Administrators of his father’s Deceased Estate advising these properties are registered to the Debtor’s father, who has the same name as the Debtor. Given these properties are not assets of the Debtor, they are not available for realisation in the Bankrupt Estate. Accordingly, there will be no recoveries from this source.
