SSI is a depressing parallel in one sense. But there is another perspective in the case of GCN.
The company in liquidation - GoConnect Australia Pty Ltd - was clearly a vital part of GCN, since it owned assets that GCN needed and has the same directors.
The liquidator is required to make a report to ASIC, and to draw attention to any misdemeanors the liquidator may have found .
Of course we have no idea whether there have been any misdemeanors in the GCN stable.
As an aside, there is a useful checklist of indicators of trading while insolvent at
4. Poor relationship with present bank including inability to borrow additional funds
5. No access to alternative finance
6. Inability to raise further equity capital
7. Supplier placing the debtor on COD terms, other otherwise demanding special payments before resuming supply
8. Creditors unpaid outside trading terms
9. Issuing of post dated cheques
10. Dishonoured cheques
11. Special arrangements with selected creditors
12. Solicitors’ letter, summons(es), judgments or warrants issued against the company
13. Payments to creditors of rounded figures, which are irreconcilable to specific invoices
14. Inability to produce timely and accurate financial information to display the company’s trading performance and financial position, and make reliable forecasts.
The indicators 1-6, 8, 12, and 14 we know, or can reasonably assume have happened. To know about the others, we would have to be working in, or have trading relations with, the company.
GCN Price at posting:
0.6¢ Sentiment: None Disclosure: Not Held
