The Hendry Group - Case Update

Robert Smith and Matthew Hutton of McGrathNicol have given an update on their administration of the Hendry Group, a Melbourne-based building advisory firm which entered voluntary administration on 9 August. Founded in 1987, the company consulted on some of Australia’s most iconic building projects and was named in the AFR's 100 Most Innovative Companies three years running.

In 2019, private equity firm Salter Brothers invested into the business, but less than a year later it commenced litigation in respect of losses due to alleged misrepresentations and warranties. In 2022, the court decided the damages claim in favour of Salter Brothers.

In late July, director Robert Salter received two director penalty notices (DPNs) from the ATO. Following the receipt of the DPNs, Salter considered, in consultation with legal and financial advisors, the financial position and future prospects of Hendry and resolved to appoint administrators.

Since their appointment, the administrators have run a public process for the sale and/or recapitalisation of the business. Two offers were received, one of which was from Salter Brothers and proposes to recapitalise the business via a DOCA. The administrators are moving forward with this offer and plan to reconvene the second meeting in 45 days to finalise the proposal.