Home' micenet eMag : micenet December 2018 Contents were made by C2 Melbourne Pty Ltd to C2 International between August 2, 2018, and
August 28, 2018. These included nine separate transfers of $150,000.
The administrator said if a liquidator was appointed, the liquidator would have strong
grounds to pursue an unreasonable director related transaction claim against C2
International, Mr St Piere and/or the former directors who held office at the time the
payments were made, for the sum of $1,381,547.
The administrators cite in their investigations that the following may have contributed to
the failure of the company:
• Poor financial control, including the lack of records available to correctly record and
explain its transactions and financial position and to enable true and financial
statements to be prepared and audited.
• Poor strategic management of business; and
• The transfer of funds totalling $1,381,547 and the EY contract belonging to C2
Melbourne to C2 International
Show me the money!
Despite what appeared to be a healthy bank balance in early August, C2 Melbourne Pty
Ltd called in the administrators leaving companies that had undertaken work in preparation
for C2 Melbourne, along with others, like real estate managers Aohua Sheng Le Property
Pty Ltd, now listed as creditors.
In its October 11 report, Rodgers Reidy reported that parties claiming to be creditors of
the company totalled $2,415,688. Major claims were:
Aohua Sheng Le Property Pty Ltd
Melbourne Convention Bureau
Event Studios Australia
Diversity Rigging and Entertainment Services
The administrator also reported that C2 International was also a creditor, claiming it was
owed $479,208, however, at the time of writing the October 11 report, it had not been
provided with documentation to substantiate this claim.
In 2017, MCI, also a creditor, said in a press statement that it had joined forces with C2
International, “with the support of the Victorian State Government and the Melbourne
Convention Bureau in bringing the world’s most innovative business conference to the Asia
MCI Group CEO, Sebastien Tondeur said: “Our partnership with C2 embodies our
mutual love for ideas and delivering not just innovation but true progress.”
micenet contacted MCI in Sydney for comment after learning it was also a creditor but
COME IN RIGGER
Diversity Rigging’s Michael
Petrani is one small business
operator feeling the pain
from his association with
Michael Petrani has been in business for more
than 21 years. He and his wife and his small team
are hardworking people who enjoy what they do.
Mr Petrani worked on the official launch of the
proposed new partnership between C2
Melbourne and the MCEC at IMEX in Frankfurt.
Some elements of the event, like the requirement
of rigging to suspend delegates in chairs above
the ground, led to Diversity Rigging getting
involved. Mr Petrani said his experience in
engineering and building, with particular
knowhow of temporary structures and legislation,
was also highly valued.
Diversity Rigging was hired to, among other
things, build a new “Sky Lab” that would fly 18
guests at a time off the ground. Mr Petrani said
the work Diversity Rigging had completed for
C2 Melbourne prior to it closing its doors was
Had it gone ahead he said the total job was
potentially worth between $275,000 and
When C2 Melbourne pulled the pin he was
basically hit by a double whammy, not only losing
money but being left with a 26 day hole in his
schedule at the busiest time of year.
Mr Petrani said his business has now returned to
normal after a difficult October.
C2 Melbourne delegates were set
to experience out-of-the-ordinary
things like this at C2 Montreal.
Photo by Sebastien Roy.
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did not receive a reply at the time of going to press.
On November 19, 2018, creditors accepted a Deed of Company Arrangement (DOCA)
• A lump sum contribution of $525,000 will be made available from C2 International
within 14 days of executing the DOCA in full and final settlement of all claims;
• C2 International will not prove in the DOCA; and
• The DOCA will release all third party and related party claims that may be available in
a liquidation scenario.
This effectively means that creditors will receive up to 20 cents in the dollar.
Australia’s talent forgotten?
Aside from the tragic loss of income for so many companies, and particularly the small
businesses involved, one matter that seems to have escaped the discussion around the
failed C2 Melbourne is why it was ever secured in the first place and, according to one
individual, how “out of touch” a number of the key players are within our industry generally.
One micenet reader and long-time Victorian-based event practitioner was alerted to a
launch event announcing C2 Melbourne at IMEX in Frankfurt in May 2018 which they
“It was quite an extraordinary presentation as it seemed to say that Melbourne was still
stuck in the era of events just being a venue, catering and a speaker, and that C2 and the
MCEC together were going to change this and bring Melbourne into the future,” they said.
“We were all pretty puzzled – and also annoyed – as a lot of very sophisticated,
experienced, focused, innovative events already happen in and come out of Melbourne.
Many [event practitioners] from Melbourne travel and work around the world.
“The three massive worldwide event companies – Jack Morton, GPJ and Imagination –
have all long had strong operations based in Melbourne. The best of Melbourne’s business
events rival anything produced around the world.
“A lot was said about C2’s Cirque du Soleil link, however, Cirque had sold their small
interest in C2 a number of years earlier.”
Our contact said they had already attended a C2 International event in Montreal in 2017.
“I do try to get to interesting events and it was a good event. Some great speakers. Some
of the logistics were all over the place though. I stood in too many queues in the rain.
“I do understand why they did want to secure C2 for Melbourne to start with.
“What I don’t understand is why they didn’t look far more closely at everything after the
2017 event was cancelled. The failure of the 2017 event should have rung alarm bells.
“It is certainly embarrassing for our industry. And a complete debacle. We have a great
industry with many great companies that do terrific, world-class events. I wish the
government and government agencies would spend a bit more time being proud of their
local industry rather than being seduced by foreigners.” m
The Melbourne Convention
& Exhibition Centre never
formalised its partnership
with C2, says CEO Peter King.
Attendees of the MCEC’s launch of its $205
million expanded facilities in early July 2018 may
have wondered what they were in for after official
proceedings were over. Different zones of the
centre had been transformed by the people from
C2 Melbourne to give visitors a taste of what
The plan was for the MCEC and C2 Melbourne to
offer event planners, and delegates, something a
little different from the norm for conferences and
events held at the MCEC, and what better way to
promote it than at the launch event.
Following the closure of the C2 Melbourne office
in August, MCEC CEO, Peter King, said the
announcement of the failure of the C2 event and
the company was disappointing.
“We had committed significant time, energy and
resources into building the event and additional
partnership opportunities with C2. MCEC is not a
creditor of C2 and we had not formalised our
partnership,” Mr King said.
“The initial decision to enter into a relationship
with C2 was about being brave, innovative and
trying new things. We know that as a venue we
need to evolve to ensure the conference
experience exceeds the expectations of our
customers and their guests. We learnt a lot about
what the modern business event attendee is
demanding and we plan on offering these
learnings to our customers.”
Early talk was that C2 Melbourne was going to
be held in the No.5 good shed on North Wharf in
Melbourne. There was even a photograph of the
C2 president, Richard St-Pierre and his vice
president of creation and content, Genifere
Legrand, standing outside the shed in The
Sydney Morning Herald in July 2017.
The conversion of the good shed into a venue
capable of hosting C2 apparently ran into trouble
and an alternative venue was sought and found
in the expanded MCEC.
No balls. Melbourne won’t be
seeing a C2 event complete with
ball pits and suspended chairs.
Image from www.c2melbourne.com.
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