Hi Jimk,
https://www.legislation.gov.au/Details/C2010A00150
The law says the CA which is a subordinated claim is to be postpond after senior debts are firstly paid off from the company's perspective. (see section 563A)
I think MB can sue the directors personally, or SGH as a company. In the latter case, it will be limited to the leftovers after senior debts are paid off. If they chose to sue directors, they are protected by their insurance. Any shortfall would be forked out by the directors' personal pocket and not by SGH.
Don't know details of the CA, but it seems MB is getting limited amounts in either cases, even if successful, i.e. SGH have more debt than assets now based on the perceived market price for debt, so suing the company won't get them anything, and directors seemed to have sold their assets and transferred their assets to their spouse, so what ever they get may just be the insurance payout, and force bankruptcy if they really wanted to get rid of AG and Skippen, but that doesn't impact SGH, as it's on director's personal accounts.
regards
Jack
