The Cut

In the latest episode of The Cut, Simon Cathro plunges into the intricate world of insolvency law, discussing its multifaceted challenges and opportunities. With us on this episode is Emily Barrett, a partner in the restructuring and insolvency team at Johnson Winter Slattery. Emily's deep understanding of the industry and her clear articulation of its complexities are sure to enlighten both legal professionals and anyone with a curiosity in the industry.

Based on her extensive experience, Emily provides us with:

• An insider's perspective on the industry's current state and how it has evolved since the Global Financial Crisis.
• Insight into the role of statutory liens in administration and liquidation.
• Details on the intricacies of adjudicating employees in administration.
• The effort behind creating Johnson Winter Slattery's case summaries publication, a valuable resource for anyone interested in the insolvency and restructuring field.
• In a world where small to medium businesses are bearing the brunt of economic downturns, it's essential to understand the role of insolvency law.

In this episode, you'll learn about:

• The unique challenges and opportunities in the insolvency and restructuring field.
• An insider's view of how the industry has changed post-GFC.
• The role of statutory liens in administration and liquidation.
• How employees are adjudicated in administration.
• The effort behind Johnson Winter Slattery's case summaries publication.
• And much more…

Links:

• Emily Barrett Linkedin - https://www.linkedin.com/in/emily-barrett-50b02163/?original_referer=&originalSubdomain=au
• Johnson Winter Slattery - https://jws.com.au/
• Cathro & Partners - https://cathropartners.com.au/
• Simon Cathro Linkedin - https://www.linkedin.com/in/simon-cathro-b6a6b21/?originalSubdomain=au

In the latest episode of The Cut, Simon Cathro delves into the intricacies of Deeds of Company Arrangement (DOCA) with guest Sam Dundas, a partner at King & Wood Mallesons. Together, they discuss the complexities of insolvency law, with a particular focus on DOCAs.

Sam shares insights from his extensive experience, recounting his career journey and his initial interest in this dynamic field due to its mix of advisory, transactional, and litigation components.

Based in Perth, Sam highlights the current surge in work within the insolvency sector, driven by high rates of business distress. He contrasts the impacts of the current economic downturn on small to medium businesses with those of the Global Financial Crisis, which primarily affected large corporations.

A significant portion of the discussion centers on the role of Deeds of Company Arrangement (DOCA) in the current economic environment. Sam explains how DOCAs provide a flexible and effective mechanism for companies to restructure their debts and avoid liquidation. He elaborates on the process of implementing a DOCA, its benefits over other insolvency solutions, and its suitability in various scenarios.

What you'll learn about:

• The current state of the insolvency sector and the workload increase.
• Different facets of insolvency law.
• Impact of the economic downturn on small to medium businesses.
• Comparisons between the current economic challenges and the Global – Financial Crisis.
• The role and advantages of Deeds of Company Arrangement (DOCA) in insolvency proceedings.
• Reasons why legal professionals are drawn to the dynamic field of insolvency law.

Links:

1. King Wood Mallesons
2. Sam Dundas Linkedin
3. Cathro & Partners
4. Simon Cathro Linkedin

In this episode of The Cut, host Simon Cathro, Managing Principal of Cathro & Partners, welcomes listeners to season 3.

This season the team will delve into the legal industry with a focus on insolvency, restructuring, and related legal matters. Simon and his guest, Tom Gardner, a restructuring lawyer from Gilbert & Tobin, discuss the complexities of insolvency law, sharing insights from their extensive experience handling various cases, from manufacturing and retail to food delivery services. Tom recounts their career journey, starting from working for Justice Black at the Supreme Court, where they were first exposed to insolvency matters, to their current role dealing with stakeholders in distressed situations.

The conversation also touches on the lighter side of legal work, including the daily responsibilities of a law clerk, right down to the critical task of getting the judge's cappuccino.

Tune in for an informative session that sheds light on the intricacies of insolvency law and the roles of those who navigate this challenging field.

What you'll learn about:

• [00:03:36] Personal Property Securities Register.

• [00:07:33] Notice board overhaul in law.

• [00:11:31] Complexities of Personal Property Law.

• [00:17:37] PPSR registration changes.

• [00:21:28] Purchase Money Security Interest.

• [00:26:27] PPSR complexities and case law.

• [00:32:28] Register data points reduction.

• [00:36:12] Asset detachment and financing.

• [00:39:10] Reducing fraud and providing clarity.

Links:

1. Gilbert & Tobin

2. Tom Gardner Linkedin

3. Cathro & Partners

4. Simon Cathro Linkedin

In finale episode of The Cut's 2023 season, host Simon welcomes two guests, Luke Whiffen from Hilton Bradley Lawyers and Terry Watson from Watson Trade Credit.

They discuss trade credit insurance and the winding up process for companies. Luke provides insights into taking legal action against companies that owe money, while Terry shares his experience in the trade credit insurance industry.

Tune in for valuable insights into the importance of aligning with clients and offers a no-win, no-fee approach.

What you'll learn about:

• (00:00:22) Lawyers and client alignment.

• (00:07:23) Insolvency in the construction industry.

• (00:10:57) Reducing DSO with trade credit insurance.

• (00:13:58) The community factor.

• (00:16:09) The collection process begins.

• (00:20:39) The impact on businesses.

• (00:24:10) Lawyers prioritising bottom line.

• (00:30:02) Quick debt collection strategies.

• (00:33:00) Uninsurable solar industry.

• (00:37:28) The winding up market.

• (00:42:36) Victoria's upcoming insolvencies.

• (00:44:30) Impact of interest rate rises.

Links:

1. Hilton Bradley Lawyers

2. Luke Whiffen Linkedin

3. Watson Trade Credit

4. Terry Watson Linkedin

5. Cathro & Partners

6. Simon Cathro Linkedin

In episode nine of season two of "The Cut", Managing Principal, Simon Cathro, is joined by Joel Hanrahan from EverEdge Global.

Together, they explore the world of intangible assets, better known as intellectual property. They discuss how building a narrative around your competitive advantage is crucial for justifying higher valuations and attracting investments.

Joel shares his background in growth-focused roles and talks to the significance of intangible assets in various sectors, including transactions and M&A.

Tune in for valuable insights into the realm of intellectual property and its profound impact on achieving business success.

What you'll learn about:

• [00:27] Building a narrative around intangible asset

• [04:38] Intangible assets and competitive advantage.

• [09:59] The changing value of companies.

• [13:23] The value of network effects.

• [19:33] Valuing intangible assets.

• [21:26] The value of intangible assets.

• [25:10] Maximising value for creditors.

• [29:02] Intangible assets worth more.

• [33:30] Exploring intangible asset value.

• [38:09] Five things for intangible assets.

• [41:45] Intangible asset expert importance.

Links:

1. EverEdge Global

2. Joel Hanrahan Linkedin

3. Cathro & Partners

4. Simon Cathro Linkedin

In episode eight of season two of "The Cut", Managing Principal, Simon Cathro, sits down with Angela Barkhouse - Managing Director, Head of Caribbean of Quantuma. In a wide-ranging discussion, Angela gives her insights on financial investigations and asset recovery, insolvency's investigative use, techniques for examining financial misconduct, BVI entities, fraud within economic cycles, forensic investigations, thinking like a criminal and blatant criminal activity. What you'll learn about:

• Asset recovery and investigations. [00:02:14]
• An interesting topic. [00:07:10]
• Using insolvency for asset recovery. [00:10:56]
• Investigating financial wrongdoing effectively. [00:14:18]
• Purpose of BVI entities. [00:18:09]
• Fraud during economic cycles. [00:22:14]
• Getting into forensic investigations. [00:26:39]
• Thinking like a criminal. [00:29:41]
• Blatantly criminal activities. [00:32:09]

Links:

1. Quantuma
2. Angela Barkhouse Linkedin
3. Cathro & Partners
4. Simon Cathro Linkedin

In episode seven of season two of "The Cut", Principal, Andrew Blundell, sits down with Patrick Coghlan, the CEO of CreditorWatch. They delve into the evolving credit landscape, their industry experiences and the paths that brought them to their present roles.

What you'll learn about:

• Starting CreditorWatch from scratch. [00:01:38]
• Invoicing challenges and old school methods. [00:05:41]
• Luck and Success. [00:06:24]
• Go-getting customers and building. [00:09:24]
• Maintaining a strong company culture. [00:13:35]
• Opening interstate offices. [00:17:02]
• Monthly business risk index. [00:20:39]
• Construction space statistics. [00:23:43]
• Ramp up in defaults. [00:29:17]
• Managing economic consequences and collections. [00:31:11]
• More of the same, just better. [00:34:02]

Links

1. CreditorWatch -
2. Patrick Coghlan Linkedin
3. Cathro & Partners
4. Andrew Blundell Linkedin

In episode six of season two of "The Cut", Founder & Managing Principal, Simon Cathro, speaks with Andrew Jolliffe, Director of Asia Pacific Region - HTL Property about the pub and hospitality sector. They discuss the active market in the sector, the background of HTL Property, and the opportunity they saw in creating a boutique brokerage organization focused on transactions. Tune in to learn more about the dynamics of the pub and hospitality industry and the factors that have contributed to its success. What you'll learn about:

• [03:37] Fragmentation in the pub sector
• [06:09] The role of pubs in communities
• [08:41] Pubs as corporate assets
• [11:23] Multi-use
• [15:28] Embracing technology in pubs
• [19:11] Tourism sector performance
• [20:01] Gearing and portfolio management
• [24:19] Management failures in insolvency
• [27:17] Financial performance and business management
• [32:49] Community in the pub sector
• [36:31] Resilience of the hotel industry

Links:

• HTL Property
• Andrew Jolliffe Linkedin
• Cathro & Partners
• Simon Cathro Linkedin

Capital Raising and Non-Bank Debt in Today's Market

In episode five of season two of "The Cut", our Founder & Managing Principal, Simon Cathro speaks with Dave Ellet, Director of Moxon Capital about the market outlook for the next 12-24 months in the SME and corporate space.

Ellet expresses optimism and believes that businesses will need to solve the people problem and that insolvency firms like Cathro and Partners will have a lot of work in the future.

Ellet also speaks about the state of housing prices in Sydney and concerns about rising interest rates.

Time Stamps

• [03:31] Successful Business Sale Techniques
• [09:06] Alternate debt sourcing
• [13:01] Australia's attractiveness for business
• [17:26] Business storytelling for sales
• [20:37] Acquisitions as growth strategy
• [21:49] Tech valuations come back
• [25:11] Transparency in Voluntary Administration
• [28:15] Insolvency and business risks
• [32:08] Liquidation and Sale of Tech Companies
• [38:41] Impact of Artificial Intelligence on labor
• [39:05] Alternative Capital Raising Options
• [42:43] Equity and Debt Market Trends

Links

• Australian dollar bounces off six month low on prospect of higher rates
• David Ellet Linkedin
• Simon Cathro Linkedin
• Cathro & Partners Website
• Moxan Capital Website
• Avenue Corporate Advisory

In episode four of season two of "The Cut" we have Andrew Blundell Principle at Cathro and Partners speaking with Heather Collins.

She is an investment manager at Omni Bridgeway, speaks on the importance of trust and relationships in the litigation funding space.

Collins emphasizes the need for trust with funders and stakeholders, working well under stress, and enjoying the work and the people you work with.

Heather has been with Omni Bridgeway for over 3 years, starting at ACT supreme court, then becoming In House Counsel for Enterprise Finance Solutions, working with Lendlease, CBP Lawyers, Baker & McKenzie and was the President of the Women's Insolvency Network of Australia.

This dynamic conversation about insolvency through the lens of law touches on:

• [00:01:05] Why Litigation funding is important.
• [00:06:48] Finding Your Niche in Law.
• [00:07:46] Distilling complex legal arguments.
• [00:10:44] Investing in Litigation Cases.
• [00:14:03] Litigation funding and claim size.
• [00:17:29] Litigation funding and asset tracing.
• [00:23:29] Building relationships in the industry.
• [00:27:25] Global economy and litigation funding.
• [00:28:13] Insolvencies in the construction industry.
• [00:32:28] Cyber security and data breaches.
• [00:40:29] Corporates and litigation funding.
• [00:43:40] The future of litigation funding.

Links -

• Heather Collins Linkedin - https://www.linkedin.com/in/heather-collins-63930917/details/experience/
• Omni Bridgeway - https://omnibridgeway.com/
• Why the people you work with are just as important as the job - https://www.inspiringinterns.com/blog/2017/01/getting-along-why-the-people-you-work-with-are-just-as-important-as-the-job/
• Watch Cathro & Partners - The Cut On Youtube - https://www.youtube.com/@cathropartners6927
• Cathro Partners Website - https://www.cathropartners.com.au/