monies in trust - not if they go broke

I asked PPPL about the monies in trust for management of our plantations and why they didn't expect to get any of it. This is their reply:
"The monies are actually held in Trust, so technically no law has been broken. However, under the project Constitution, we understand that there is a clause that actually means that the trust money does not have to be transferred to a new Responsible Entity. This is why we do not believe that the Receiver’s will transfer the money to Primary RE (our proposed independent Responsible Entity)."

So it appears that the moneys that we thought would be placed in trust to ensure that we could manage our plantations until harvest was not really put in trust. Should this sort of constitution be allowed at all? Is ASIC responsible for allowing this? I wonder what lawyers will think of it?