Good evening,

It’s an anxious time for Anchorage Capital Partners❜ dealmakers ahead of Wednesday’s creditors’ meeting for Scott’s Refrigerated Logistics Group.

Sydney private equity investor Anchorage snapped up the cold-storage logistics group from car dealership group Eagers for $75 million in 2020 but Scott’s hit the skids three years later as COVID-19 and flooding caused its turnaround plans to crash.

Voluntary administrator McGrathNicol had already flagged the company may have been trading insolvent months before it collapsed but a new creditors report, from August 13, shows they’ve taken the inquiries a step further. The administrator has held discussions with major creditor, the Department of Employment and Workplace Relations, and drafted a funding agreement with the Australian government department to allow liquidators – also McGrathNicol – to “pursue further investigations”. It is expected to be put to creditors to vote in the coming days.

In layman’s speak, this means the liquidators, who don’t have a mountain of their own resources, are relatively advanced in their inquiry and have convinced creditors there’s enough of a compelling case to fund further investigations. What it turns up remains to be seen, but they could now have funds to intensify the probe – potentially pulling a relatively dated situation back into the news cycle.

Read the full story tomorrow and more on the Street Talk page.

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Elmo Software’s owner K1 Investment Management is selling an aggressive turnaround story as it kicks off a sale process and puts a flyer in front of potential buyers.

The sharemarket closed lower on Tuesday as investors weighed up rising anxiety in the Middle East and a fresh wave of profit results from some of Australia’s largest companies.

Click here for the latest equity market wrap.