Ann: Update On Subsidiary - CleanTech Energy Pty Ltd, page-61

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Tinwins

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09/06/23

17:24

Post #: 68222851
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Originally posted by TheSourLemon ↑

I am almost certain that the parent company must pay for the debts occurred by the wholly owned subsidiary and that the CER has the legal powers to liquidate the subsidiary+parent to recoup the costs owed. The CER has a lot of useful information and is quite transparent and ruthless when it comes to failing to pay debts.
My sources are the CER website, ATO and random independent Australian legal advisor websites regarding when a parent/holding company is liable for subsidiary debts. The wording of the recent updates, as pointed out by desertred and others, appears that management thinks the subsidiary cannot sink the parent company. I think it is a dire time and most companies I've watched conduct a last minute raise to fight off administration have generally failed within the next couple months.

My other source would be that DEL (parent company) itself is attempting to raise $2.1m to pay for it's subsidiaries refundable debts, plus approx $0.2m in non-refundable interest fees (based on ATO shortfall % charge). The cash runway falls off by ~July and on top of all of this, they have the costs associated to any type of raise. I'm predicting a >$3.0m raise at about 1.3c at a best case. Any institutional uptake will probably snag shares for less than 1.3c. The accountants at DEL would be advising to drastically cut staff and expenses.

I also would take any words from management/board with a bucketful of caution. Their track record is undesirable in my opinion.

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That is exactly my point in that others should ring and have that discussed.

DEL Price at posting: 3.2¢ Sentiment: Hold Disclosure: Held
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Ann: Update On Subsidiary - CleanTech Energy Pty Ltd, page-61

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Ann: Update On Subsidiary - CleanTech Energy Pty Ltd, page-61

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