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13.0¢ integrated green energy solutions ltd

IGE - Liquidator Appointed, page-5

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Bigstockpunter

452 Posts.

107

03/06/21

11:36

Post #: 53617611
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Originally posted by grussellt: ↑

One of the more remarkable facts to be revealed in the hearing is the debt to Fandola (which we can call the Chairman's company) of $24.5m. The debt owing to this director was last mentioned in the 2019 accounts as :

Loan amounts and interest accrued payable to related parties of Paul Dickson have been capitalised
and capped as part of a success fee negotiation. The amounts are entirely unsecured and provided
on inferior terms to those offered to unrelated parties at the time of inception. The Company was
unable to secure any external source of funding for this amount at this time. The loan offer and terms
where offered to all Directors and all rejected the offer with the exception of Paul Dickson. The
outstanding amounts only become payable upon completion of the following deliverables:
1) Provision of full funding for the initial IGES plastics to fuel site;
2) Capacity to generate fuel at the initial site; and
3) Commissioning of initial kiln
These deliverables are a prerequisite to ensure the Company is able to successfully roll out its plastic
to fuel technology at its initial site. Having this initial site developed to commissioning will act as the
cornerstone to develop all future opportunities for the Company. The total amount accrued under
this agreement as at 30 June 2019 is $9,601,171.

Now that is remarkable growth and even more remarkable is the purported grant of security to Fandola:

"It is Mr Devine’s understanding, based on information provided by Mr Clark, that Fandola holds security over intellectual property owned by IGE Singapore, and that intellectual property is the IGE Group’s most important asset because companies in the IGE Group would be unable to pursue any projects without the intellectual property."

Expand

Very good points.

Also can an insolvent company grant a security interest to a director (or director related entity)?

Clayton Utz article on this point suggests it is an unfair preference:

How does s 588FA apply to the granting of a security interest over an unsecured debt? - Knowledge - Clayton Utz

IGE Price at posting: 13.0¢ Sentiment: None Disclosure: Not Held
1 Upvote

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