Hi All,
Also trying to be a little cheerful and maybe a glimmer of hope - and understand the process as a share holder myself, hadn't had time to look over Baraka's post to the Asic's link - till today
'Asic' - Insolvency: A guide for Shareholders'.
Working my way through the guide there are-3 forms of Insolvency
Liquidation
*Voluntary Administration (Cuo)
Receivership
Voluntary Administration - at least seems to offer a hope of a better outcome and options than Liquidation or Receivership.
From Asic's Guide-
Voluntary administration -
Voluntary administration is designed to resolve a company’s future direction quickly. An independent and suitably qualified person (the voluntary administrator) takes full control of the company to try to work out a way to save either the company or the company’s business.
If this isn’t possible, the aim is to administer the affairs of the company in a way that results in a better return to creditors than they would have received if the company had instead been placed straight into liquidation. A mechanism for achieving these aims is a deed of company
arrangement.
The voluntary administrator’s role
After taking control of the company, the voluntary administrator investigates and reports to creditors on the company’s business, property, affairs and financial circumstances, and on the three options available to creditors. These are:
1. end the voluntary administration and return the company to the directors’ control
2. approve a deed of company arrangement through which the company will pay all or part of its debts and then be free of those debts, or
3. wind up the company and appoint a liquidator.
The voluntary administrator must give an opinion on each option and recommend which option is in the best interests of creditors.
The voluntary administrator has all the powers of the company and its directors.
This includes the power to sell or close down the company’s business or sell individual assets in the lead up to the creditors’ decision on the company’s future.
The voluntary administrator must also report to ASIC on possible offences by people involved with the company.
If a deed of company arrangement is approved, the voluntary administrator will usually become the deed administrator and oversee its operation.
The directors’ role
Directors cannot use their powers while the company is in voluntary administration. They must help the voluntary administrator, including providing the company’s books and records,
and a report about the company’s business, property, affairs and financial circumstances, as
© Australian Securities & Investments Commission, January 2008
Visit our website: www.asic.gov.au
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Hi Dynofish / Baraka or the more generally knowledgeable in this field- can you please assist here ?
Mc Grath /Nicolls are the Voluntary Administrators of Cuo
Ferrier Hodgson play exactly what role as the stated receivers? *
Trying to clarify and understand myself.
Cheers MB
Thought it might help others to understand as well.
CUO
copperco limited
