Home' micenet eMag : micenet December 2018 Contents The failure of the much-anticipated C2 Melbourne event continues
to shock the local business events sector, with creditors now only
expected to see one fifth of the money owed to them.
C2 MELBOURNE | BRAD FOSTER
n November 19 creditors
accepted a Deed of Company
Arrangement (DOCA) which
• A lump sum contribution of $525,000
will be made available from the
Canadian-based C2 International within
14 days of executing the DOCA in full
and final settlement of all claims;
• C2 International will not prove in the
• The DOCA will release all third party and
related party claims that may be
available in a liquidation scenario.
One of those creditors – and one of C2
Melbourne’s biggest early supporters – was
the Melbourne Convention Bureau (MCB).
MCB CEO Karen Bolinger told micenet
following the meeting that “C2 International
has had significant unwavering support from
the Melbourne Convention Bureau, the
events industry and the corporate
“MCB is deeply disappointed with the
outcome of the administration process and
the impact that the C2 event cancellation has
had on the Victorian events industry and
stakeholders. Having considered the
recommendations of the administrators,
MCB reluctantly accepted the proposed
deed of company arrangement. From an MCB perspective C2 had all the right qualities and
track record to be established in Melbourne as an annual, innovative business event. It is
unfortunate that notwithstanding MCB’s financial and industry support, that this event was not
able to be seen through by C2 Melbourne.
“The cancellation of the 2018 C2 Melbourne event came as a shock to MCB, particularly
given the positive messaging being provided from the C2 Melbourne management team in the
lead up. The administration process is still ongoing and we anticipate a final outcome for the
businesses and suppliers impacted in early 2019.”
When C2 Melbourne Pty Ltd was incorporated in September 2017 after a reported two years of
negotiation between various Victorian government bodies and the Canada-based C2
International, there were plenty of celebrations.
Press releases were fired off claiming Melbourne would host the first international C2 event
with attendance figures expected to be more than 2000. The mega Canada event which started
in 2012 now has upward of 6500 attendees.
Further claims were made that C2 Melbourne would create more than 100 jobs.
Early on, C2 secured interest from media outlets, including Fairfax Media, with at least one of
the company’s journalists flown to C2 Montreal as a guest. On July 4 The Sydney Morning
Herald ran an article on C2 coming to Melbourne, even including news speakers in Melbourne
would include Ernst and Young global vice chair of markets, Uschi Schreiber, tech super fund
founder Paul Bennetts and entrepreneur Lakshmi Pratury.
C2 Melbourne was due to be held between November 30 and December 1, 2017.
As previously reported, C2 Melbourne in 2017 didn’t happen and the event was postponed
to October 2018.
When in June 2018 and August 2018 two company directors resigned, citing ill-health, a
decision was made that C2 Melbourne Pty Ltd should cease operations, thereby putting an end
to the C2 Melbourne event.
It is believed that the company had sold just 200 tickets (which at the time were being sold
for more than $2000 each).
SHOCKS KEEP COMING
76 | micenet
76-79 C2.indd 76
26/11/2018 1:49:08 PM
The company had four directors – Richard St Pierre (also President and shareholder of
C2 International), Arthur Davis, Martin Enault (formerly CEO of C2 Melbourne until he
resigned as director due to ill-health on August 17, 2018), and Martin Vallee (who resigned
due to ill-health on June 1, 2018).
At the time C2 Melbourne Pty Ltd closed its doors it had approximately 30 employees,
according to papers prepared by the administrators (Rodgers Reidy Pty Ltd) which was
brought in to look into the company’s affairs.
In a statement provided to the administrators by C2 Melbourne Pty Ltd director, Richard
St Pierre, the company’s failure was due to:
• Insufficient ticket sales which led to the cancellation of the C2 Melbourne 2018 event.
• Cancellation of a proposed major government contract.
Administrators Rodgers Reidy found that funding for the C2 Melbourne event in
October 2018 was to come from advanced funding from C2 International ($479,208).
C2 Melbourne had also been provided with what the administrators described as “a
grant” from the Melbourne Convention Bureau (MCB) of $1.485m, with a further $165,000
payable to C2 Melbourne on achieving the attendance target of 2000 delegates.
The administrators found that the MCB paid C2 Melbourne $550,000 – the first
instalment of the $1.485m grant – on July 9, 2018.
The administrator also claimed in their report that in addition to the Melbourne event,
C2 Melbourne provided event hosting services to a PricewaterhouseCoopers event in
Hong Kong on or around August 2018, and had entered into a contract with Ernst and
Young (EY) to organise its Partners’ Conference in Sydney in late November 2018.
The cost of this conference was $2,592,032 (inclusive of GST) to be paid by way of six
instalments. The first two instalments totalling $1,039,452 were deposited in the C2
Melbourne company bank accounts on July 27, 2018.
Just prior to the administrator’s appointment, according to the administrator, “a new
contract appears to have been executed between EY and C2 International in relation to
the EY [Sydney] conference in the week prior to the administrator’s appointment.”
The administrator said the task to be carried out as per the new contract “is identical to
the original contract between EY and the company.”
“The cost of the new contract, being $2,482,032 (inclusive of GST) is similar to the
costs of the original contract between EY and the company; and the new contract
between EY and C2 International specifically provides that the first two instalments of the
contract sum have already been paid to C2 Melbourne and that all future payments will be
paid directly to C2 International.”
The administrator’s investigations also identified payments totalling $1,381,547 that
Back in May this year the
Victorian Government was
claiming the C2 Melbourne
event would create 100 jobs.
There hasn’t been a peep
from them since.
In September micenet contacted the office of
Philip Dalidakis who was managing three
portfolios as the Minister for Trade and
Investment, the Minister for Innovation and the
Digital Economy, and the Minister for Small
Business, about the news that C2 Melbourne Pty
Ltd had closed its doors. We received an email
response from the media contact who kindly
allowed us to attribute the following to a
“Victorian Government Spokesperson”.
“This is unfortunate news, but the close of C2
Melbourne is a company decision,” the
spokesperson said. “No taxpayer money has
been lost and we’ll continue to support innovative
conferences that bolster our reputation as
Australia’s business conference capital.”
On the latest news, and with an understanding
that the Melbourne Convention Bureau was a
creditor, claiming it was owed $500,000, micenet
contacted Mr Dalidakis’ office once more seeking
clarification on the Victorian Government
Spokesperson’s claim that “no taxpayer money
has been lost”. We did not receive a reply at the
time of going to press.
In a media release from Mr Dalidakis’ office dated
Wednesday, May 2, 2018, media outlets learnt
the creator of one of the world’s most innovative
business conferences – C2 – had established its
Asia Pacific HQ in Melbourne and would be
“creating 100 jobs between now and 2020”.
It said: “The company’s presence in Victoria will
strengthen the state’s reputation as Australia’s
innovative capital and encourage disruption and
innovative thinking to solve global and local
economic and social problems”.
Mr Dalidakis said: “C2 is yet another great
outcome from our investment facilitation program
which continues to support both local and foreign
companies and create jobs for Victorians.”
The investment facilitation program Mr Dalidakis
was referring to was, we believe, the Andrews
Labor Government’s commitment of an additional
$55 million to its Investment Attraction and
SHOCKS KEEP COMING
Early talk was that C2
Melbourne would be held in
a good shed on North Wharf.
Something happened here and
the event location was moved.
President of C2
micenet | 77
76-79 C2.indd 77
26/11/2018 1:49:09 PM
Links Archive micenet October 2018 Navigation Previous Page Next Page