Gunns was probably insolvent in August/September 2011 when it negotiated with Ms Giddings and Ms Gillard. Remember insolvency is not a balance sheet test requiring assets to exceed liabilities; it’s being able to pay debts when they’re due.
Which Gunns couldn’t do?
If Gunns hadn’t substantially commenced the earthworks by 31st August 2011, it would have been all over red rover.
Clause 42 might say “(t)he Commonwealth’s position is that no Commonwealth funds will be paid to progress the Bell Bay pulp mill project”, but the simple reality is clause 34 covered payments to Gunns that were without doubt used to progress the pulp mill.
Giddings knew Gunns was insolvent
John Lawrence, Tasfintalk. First published, Tuesday, March 5
07.03.13 5:22 am
part article from T.T Re John Lawerence
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