BourkeHood Pty Ltd and BourkeHood Holdings Pty Ltd - Case Update

Kate Conneely and Rahul Goyal of KordaMentha have provided an update on their administration of BourkeHood Pty Ltd and BourkeHood Holdings Pty Ltd, a global research and development innovation funding consultancy which entered voluntary administration in August. BourkeHood, which was generally only paid once clients received their tax refunds, began to experience cash flow difficulties in March 2023 after certain clients experienced difficulties obtaining their R&D tax offset claims from the ATO. A sale process was conducted in the administration, resulting in an asset and share sale to Pattens Group Pty Ltd which was completed on 10 November. The administrators’ preliminary investigations have revealed some evidence that BourkeHood’s director breached his duties to the company, including in relation to certain related party loans totalling almost $900,000 and significant personal spending on the corporate credit card. No DOCA has been proposed for either company, so the administrators are recommending that the companies be wound up. The second meeting of creditors is scheduled for 24 November.