Taking two examples where the company was clearly insolvent and...

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TerribleTadpole

5,124 Posts.

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19/09/24

18:34

Post #: 75751253
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Originally posted by Teddyward: ↑

Don't be confused the business is insolvent and that is why they called in the VA to create a time moat and stop any creditors taking action when payment was due imo.

The assets carrying cost is the business cost not the real world cost - What are tangible assets and what is their firesale value

VA acts as CEO and board. Board and CEO an hang around if they wish and try and get a good outcome or they can walk away. They generally hang so they have a chance of traveling with new business owner if they or the VA can find one assuming information the board and CEO has value or the CEO wants to deal with creditors in future like if business is re birthed.

Usually end of day, end of week or end of fortnight depending on pay cycle gets rid of most staff . Some are witheld to package information. Remember the VA spends a week for free in business assessing what has gone on and advises the CEO / board how to transition to VA and limit their liability and VA ensure enough $ to pay their bill. . Most companies have been consulting a VA expert a month before lining up the ducks

Look at the court documents for more real information on who creditors and real position of company

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Taking two examples where the company was clearly insolvent and irretrievably ruined:

SO4: not even 45 minutes for the creditors to appoint receivers, and the board lasted less than a fortnight:
20-Oct-2021 16:06: Appointment of voluntary adminstrators
20-Oct-2021 16:50: Appointment of receivers and managers
01-Nov-2021 13:49: Resignation of directors

KLL: the company didn't even get to announce VA; the receivers did it for them, and the board was gone in under 4 hours:
04-Aug-2023 12:05: Appointment of receivers and managers
04-Aug-2023 15:47: Resignation of directors

The only court document I've been able to locate is today's decision. I don't think they've been to court for anything else. Normally these things don't go to court until there's a DOCA to be approved, unless there's some dispute.
RFX Price at posting: 9.7¢ Sentiment: None Disclosure: Not Held
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