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Non-Executive Director: Environinvest Ltd, MIS Forestry Planations

Jason Bresnehan was appointed a Non-Executive Director of the company to place it Administration and project the process with the insolvency practitioner

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Blue Gum Planatation 2

Non-Executive Role to Appoint an Administrator and Manage Insolvency Process on Behalf of Shareholders

On September 18, 2008, the major shareholder appointed Jason as a Non-Executive Director of the failing MIS Forestry Blue Gum Plantation business. His instructions were to appoint an Administrator and manage the insolvency process using his powers as a Director to represent the best interests of all shareholders, ensuring maximum recovery by avoiding excessive insolvency practitioners' fees.

Two weeks prior, the Commonwealth Bank of Australia had illogically blocked a sale of the primary assets for USD $40 million.

This was a challenging appointment for Jason, involving a liquidator's examination in the Victorian Supreme Court. He gave evidence under cross-examination during the court-ordered questioning of the company's officers and others involved with the company. Ultimately, Jason assisted the Directors' lawyers and professional indemnity insurers, Lloyds, in reaching a settlement with the Liquidator representing the Commonwealth Bank. The bank received AUD $5 million instead of the USD $40 million that was on the table in early September 2008.

Jason Bresnehan Black Heavy Coat Jumper and Shirt in New York
Jason Bresnehan Black Heavy Coat Jumper and Shirt in New York

You can leverage Jason's skills and learnings from this experience. The early days of the GFC were incredibly challenging, with major banks having little comprehension of the unfolding crisis. They operated with a "too big to fail" mentality, which should have led them to take a sensible approach by "taking a haircut." Instead, they went for everything, and in many cases, like this one, the situation deteriorated from $40 million in recoveries to $5 million due to their unwillingness to accept a haircut because of their "we never lose" mentality. 

This appointment was exceptionally difficult, but I handled the pressure and helped the major shareholder, and his family navigate the stress of significant financial loss.

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