It’s a corporate track in the style of Spinal Tap, where lead guitarist Nigel Tufnel was second to, uh, nobody except co-lead guitarist David St Hubbins. We’re looking forward to Flagstaff’s revamp of Spinal Tap’s 1982 special feel the glove.
Flagstaff found himself out of pocket after working on deals for Collection House as the ASX-listed debt collector tried, ultimately unsuccessfully, to stay afloat by whipping up enough assets for scrap.
Spiels from the website show Flagstaff advised the recapitalization of Collection House and the sale of Debt Register to rival collection agency Credit Corp, deals worth $220 million in December 2020. Flagstaff has also helped another sale of Collection House assets in February.
Despite this, Collection House suffered the ignominy of appointing directors from FTI Consulting in June. The debts recorded, according to FTI’s missives to creditors, included $1.97 million owed to Commonwealth Bank and $10.85 million to Westpac. At least it’s a ranking where Peter Kingthe bank outperforms matt comin‘s.
Another $5.63 million is owed to 95 other unsecured creditors, whose identities were detailed in a filing with regulators. That led us to Flagstaff’s $1.265 million (though it’s still unclear what work was done for that money in the “we’ll pay you later” category).
Fingers crossed Flagstaff and all creditors are recovering a good portion of the dollar cents owed to them. Everything will depend on what the directors can sell the company. Not that the rate of return to creditors is generally good in many insolvencies.
Heck, if a debt collector can’t repay his debts, who can?