37-498: United Petroleum is an Australian petrol retailer and importer. It was established in 1993 and, as of October 2020, has over 450 petrol stations in Australia. The company also owns Pie Face , a pie outlet it acquired in 2017 and subsequently rolled out to many of its service stations. United Petroleum's origins can be traced back to 1981, when United's owners Avi Silver and Eddie Hirsch commenced operating service stations under
74-419: A deal to sell its assets to a buyer before appointing administrators to facilitate the sale. It is a legal way of selling the business on to a trade buyer or third party. A pre-pack is the process of selling the assets of a company immediately after it has entered administration. It is sometimes the case that the previous directors or management purchase the assets of the company from the administrator and set up
111-490: A debtor who has enough money left over after priority creditors and essential expenses may be able to arrange an individual voluntary arrangement. (Debtors with less serious problems may prefer a debt management plan .) The Republic of Ireland operates a similar process called examinership , but companies require permission from the High Court to enter and leave examinership. In New Zealand , voluntary administration
148-451: A floating charge created prior to 15 September 2003 retain their right to appoint an administrative receiver, but all purported rights to do so created after that date will be construed as rights to appoint an administrator, subject to certain specific, rare exceptions. A court order is issued that forbids any form of legal or insolvency action without the court's permission. An application to the court for an administration order may be made by
185-605: A more flexible regime is available under the Companies' Creditors Arrangements Act ("CCAA"). In UK law, the administration regime is governed by the Insolvency Act 1986 , as amended by the Enterprise Act 2002 . An "administrator" can be appointed without petitioning the court by the holder of a floating charge (created since 15 September 2003), by the company or by its directors. Other creditors must petition
222-461: A new company. This process has advantages in that it enables the administrator to realise a greater amount for the assets due to business continuity and that the goodwill of the company is preserved. The employees of the company are also usually transferred to the new company, preserving jobs. Pre-packs have attracted criticism because of the appearance it gives to unconnected parties that the company has just continued without its creditors. SIP 16
259-459: A number of former franchisees sued the company for allegedly unfair termination. In December 2022, United was fined $ 75,000 for dumping soil from a demolished petrol station site near the Noosa River in 2013. On 27 February 2024, United Petroleum announced the successful acquisition of a license to enter Sri Lanka 's retail petroleum products market. To establish operations in the country,
296-820: A stock market listing to be valued at $ 150 million, and had agreements to establish stores in Asia, Europe, the Middle East and the United States. The firm secured financing in December 2014, enabling it to continue trading. However, its focus was shifted mainly to wholesale and retail sales. Large numbers of company-owned and franchised stores closed as result, with the loss of hundreds of jobs. Pie Face went in receivership again in late 2016, and closed eleven company-owned stores. As at 24 November 2016 approximately 26 franchised stores remained open. In January 2017 it
333-410: Is a process designed to protect limited companies from their creditors while a debt restructuring plan is carried out and presented to creditors and courts. This administration order process requires a licensed insolvency practitioner to act as the administrator appointed by the court. The administration order does not concern joint debt. Pre pack is an insolvency procedure where a company arranges
370-407: Is an officer of the court and an agent of the company, and is not personally liable for any contracts they make on behalf of the company. They have the power to do anything necessary or expedient for the management of the affairs, business and property of the company. The new administration regime introduced by the Enterprise Act 2002 replaces the previous situation where administrative receivership
407-523: Is covered by the Companies Act 1993 , as amended under the Companies (Voluntary Administration) Regulations Bill in 2007. In Ukraine, a system of "sanation" ( Ukrainian : санація ) measures take place to prevent or lessen the effect of insolvency. The basic components of those measures include providing special loans and subsidies; exemptions for issuing a credit or taxation; restructuring of
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#1732791752908444-592: Is not paying award wages then the Franchisee would be clearly in breach of their Franchise Agreement with United". The Fair Work Ombudsman launched an investigation resulting in raids on 12 locations in 2017. The FWO found payroll compliance issues at five of the locations and a total of 46 employees were underpaid. Two locations entered enforceable undertakings with the regulator, two locations were issued compliance notices and three were issued letters of caution. In September 2016, United Petroleum filed documents with
481-440: Is operating efficiently, with enough freedom of competition between insolvency practitioners and whether consumers and creditors are being treated as fairly as possible. An example of a pre-pack is the sale of the assets of Cobra Beer to Coors immediately after Cobra Beer entered administration. This allowed the brand to continue and saved jobs, but also left suppliers out of pocket by an estimated £75 million. In this process,
518-486: Is planning to establish a food manufacturing venture in Sri Lanka. The company intends to invest approximately US$ 20-30 million in the project, which will be managed by UP's wholly-owned local subsidiary, United Petroleum Lanka Private Limited. Administration (law) As a legal concept, administration is a procedure under the insolvency laws of a number of common law jurisdictions, similar to bankruptcy in
555-732: The Australian Securities & Investments Commission to list the company on the Australian Securities Exchange . However the listing did not proceed, with United becoming involved in a legal dispute with advisors Herbert Smith Freehills . The case was dismissed in June 2018 with United ordered to pay HSF unpaid legal fees plus interest. In April 2017, United Petroleum acquired Pie Face from receivership for an undisclosed sum. It subsequently sold Pie Face products at many of its United locations. In 2021
592-620: The Northern Territory , Tasmania and Western Australia . In the mid 2000s, it acquired fuel import terminals in New South Wales, Northern Territory, Tasmania and Victoria. In 2011, United purchased an ethanol biorefinery in Dalby, Queensland . In September 2015, ABC News was told by United Petroleum franchisees that staff at some locations were being underpaid. United rejected the allegations, saying "If any Franchisee
629-761: The Astron banner in Victoria . Astron was closely associated with Esso . By 1990, the company had opened 23 new sites throughout Victoria. United Petroleum was established in 1993, with the opening of a chain of service stations/convenience stores in South Australia . It expanded operations in Victoria, and over the next two years built networks in the Australian Capital Territory , New South Wales and Queensland . It later expanded into
666-783: The Australian company incorporated United Petroleum Lanka Private Limited and signed an agreement with the Board of Investment (BoI) for a US$ 27.5 million investment in the importation, storage, and sale of petroleum products on 4 June 2024. United Petroleum Lanka is anticipated to commence its operations on 28 August 2024. United Petroleum is reportedly planning to establish a food manufacturing venture in Sri Lanka under its Pie Face brand. The company intends to invest approximately US$ 20-30 million in this project, which will be managed by its wholly-owned local subsidiary, United Petroleum Lanka Private Limited. Between 2014 and 2016, United Petroleum
703-542: The United States . It functions as a rescue mechanism for insolvent entities and allows them to carry on running their business. The process – in the United Kingdom colloquially called being "under administration" – is an alternative to liquidation or may be a precursor to it. Administration is commenced by an administration order . A company in administrative receivership is operated by an administrator (as interim chief executive with custodial responsibility for
740-597: The business had significant "growth potential, if properly managed" and seven or eight companies were considering purchasing the chain. All the New Zealand outlets had closed by the end of 2017. In April 2017, it was acquired by United Petroleum for an undisclosed sum. United subsequently sold Pie Face products at many of its petrol station locations. In 2020 it was revealed the company were selling items labelled as halal , which were in fact, not halal. Pie Face, along with its parent company, United Petroleum (UP),
777-516: The business's debts and capital; change of organizational and production structure of the debtor; full or partial nationalization; others. Following the dissolution of the Soviet Union and reforming the existing socialist law , in 1999 there was established a law "About restoring the debtor's solvency or declaring him bankrupt". The official who administers "sanation" is known as an "arbitral director" ( Ukrainian : aрбітрaжний керуючий ) and
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#1732791752908814-486: The chain had 80 stores in Australia and the United States, and planned to open a further 100 worldwide. Pie Face received $ A35 million in funding, including from a number of high-profile investors who hoped that it would be eventually listed on the stock market. In November 2014 Pie Face entered voluntary administration, facing legal action both in Australia and the US. Prior to entering administration it had been considering
851-573: The company and control of the company is given entirely to the administrator. Directors of the company are prohibited from acting in their capacity as directors for the duration of the administration, while administrators are personally liable for any debts incurred by the company in the course of the administration. The Bankruptcy and Insolvency Act provides mechanisms for consumer and general proposals in order to give time for an insolvent person to be able to reorganize his affairs. For insolvent companies (or affiliated groups) owing more than $ 5 million,
888-448: The company directors. In involuntary administrative receivership, the administrator is appointed by a judicial court. The legal terms for these processes vary from country to country, and the processes may overlap. In Australia, an external administrator, also called an insolvency practitioner , is an independent person that is formally appointed to control an insolvent company's affairs. External administrators can be appointed either by
925-408: The company's assets and obligations) on behalf of its creditors . The administrator may recapitalize the business, sell the business to new owners, or demerge it into elements that can be sold and close the remainder. Most countries distinguish between voluntary (board-decided) and involuntary (court-decided) receivership. In voluntary administrative receivership, the administrator is appointed by
962-427: The company's assets or carry out other tasks. Voluntary administration is when the directors of an insolvent company appoint an external administrator to investigate whether winding up the corporation can be prevented or delayed and to make recommendations to the directors and their creditors as to whether the company should enter into a deed of company arrangement, be wound up (i.e. liquidated ), or be returned to
999-564: The company's assets will be managed to ensure better returns for its creditors than an immediate winding up. When a creditor petitions the court seeking a court liquidation (a court-mandated winding up) of an insolvent company, the court appoints a " provisional liquidator " to temporarily preserve the company's assets while the winding-up application is pending. Administrators are required to be registered liquidators since they have broad powers to deal with company property. The appointment of an administrator "freezes" any legal proceedings against
1036-404: The company's directors, a secured creditor , or by a court, and include: provisional liquidators , liquidators , voluntary administrators, deed administrators , controllers , and receivers . A receivership is when an external administrator known as a "receiver" is appointed by a secured creditor to sell off a company's assets in order to repay the secured debt , or by the court to protect
1073-478: The company, the directors, a creditor or any combination of them. The Enterprise Act 2002 amended the Insolvency Act 1986 to provide an out-of-court process to appoint an administrator to the holder of a floating charge or the company or its directors. This is considerably cheaper and simpler than the previous system, which involved an application to court. In the United Kingdom, an administration order
1110-421: The control of the directors. After an administrator is appointed, there are two meetings of creditors, held within tight time-frames, with the second being the most important as it will decide whether to enter into a deed of company arrangement (DOCA), end the administration or wind the company up. The DOCA is a binding agreement between a business and its creditors overseen by a deed administrator relating to how
1147-575: The court can be produced at the courts discretion. Administration is analogous to going into " Chapter 11 " in the United States, although there are certain key differences, mainly stemming from the fact that English law does not include the debtor in possession concept. During the reorganisation period, as a result, the administrator usually runs the business rather than the directors, and any additional liquidity requirements effectively have to be met by funds provided by existing creditors rather than by any super-senior ' DIP financing '. The administrator
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1184-465: The court to appoint an administrator. The administrator must act in the interests of all the creditors and attempt to rescue the company as a going concern . If this proves impossible the administrator must work to maximise the recovery of the creditors as a whole. Only then may the administrator attempt to realise property in favour of one or more secured creditors. A firm is usually in administration for no more than 12 months, after which an extension from
1221-489: The majority of the chain's stores closed. In April 2017, it was acquired by United Petroleum . Between 2018 and 2020, Pie Face opened over 200 locations across Australia. As of December 2020, Pie Face operated 240 locations. Pie Face was established in 2003, and rapidly expanded. After opening a number of stores in Australia, it established stores in New York City during 2012 and New Zealand in late 2013. At its peak
1258-421: Was available as an alternative to administration, which has traditionally been a more rescue-oriented insolvency regime. This regime allowed the holder of a floating charge to appoint an administrative receiver to realise assets in his favour, and also to block an administration order sought by a borrower. This was felt to be too favourable to the floating charge holder at the expense of other creditors. Holders of
1295-510: Was introduced in January 2009 to assist Insolvency Practitioners in pre-pack cases. It was designed to make the process more transparent for creditors, and to ensure that fair value was obtained for the assets. In November 2009, the Office of Fair Trading announced a study into corporate insolvencies, with particular focus on pre-pack administrations, to report on whether the insolvency market
1332-429: Was reported that the chain was nearing profitability, and now had 30 franchised stores and intended to expand overseas again with a focus on Japan and South Korea. However, it continued to have debts of $ 9 million, including $ 1 million owed to staff, and was facing a motion to be wound up for unpaid debts. At this time its receivers told the media that unsecured creditors were unlikely to receive any funds, but they believed
1369-541: Was the official supplier of E85 fuel for the Supercars Championship , after which Shell took over the supply deal. Pie Face Pie Face is an Australian food chain which predominantly sells pies, sausage rolls and coffee. It was founded in 2003 in Sydney, Australia , by Wayne Homschek. Following a period of rapid growth in Australia and overseas, the company entered administration in 2014 and
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