Let me quote from ASIC vs Plymin (2003) VSC 123 where the court...

Let me quote from ASIC vs Plymin (2003) VSC 123 where the court identified the following indicators which it said were common features in insolvency situations;

I would now apply this to Babcock and Brown dating back from mid 2007 and invite you to draw your own conclusions.

1. Continuing losses
2. Overdue commonwealth and state taxes
3. Liquidity rations below 1
4. Poor relationship with present Bank, including inability to borrow further funds.
5. No access to alternative finance
6. Inability to raise further capital
7. Suppliers placing restrictions on company credit (COD etc) or otherwise demanding special payments
8. Creditors unpaid outside trading terms
9. Issuing of post dated cheques (meaning post dated financinal debt obligations)
10. Dishonoured cheques (meaning in this case dishonuring payment to creditors, dividends, interest etc)
11. Special arrangements with selected creditors
12. Solicitors letters, summons, judgements or warrants against the company (including litigation where company seeks to bankrupt its creditors or to restrict any claims against the company by its creditors- usurious lending practices- unlawful undisclosed mezzanine and other finance arrangements)
13. Inability to produce accurate and timely financial statements or other financial information, to accurate display the company's trading performance and to make reliable financial forecasts.
14. Payments to creditors in rounded sums which are not reconcilable to specif invoices or debts.

I lay these at the feet of Babcock & Brown's board and its management and challenge them to come out and to defy their guilt on at least 75% of whats identified above.

I also challenge ASIC as the regulator in these matters to defend its credibility (or whats left of it) against allegations that it had known for a while now that Babcock and brown were insolvent or at least that ASIC had knowledge and were concerned for its financial condition yet failed to act on it whilst ASIC instead selectively attacked otherwise solvent companies in the property sector causing tens of thousands of shareholders and investors to loose all their money if not most of it.

The term solvent here is used against the definition of insolvency contained in section 588G(1)(b) in that Babcock incurred debt whilst it was insolvent.

The rumours being fed to a complaint media by Babcock and Brown and its very highly placed board and management about take overs and management buy outs are just that to buy time. ASIC remains mute and does nothing to investigate the cource of these rumours. SIC instead chases the proverbial used car salesmen selling an extra tyre in the cars they sell as being in contrvention of the
5th tyre sales act (if there were one.....know what I mean??? )

Lets pull the plug. There's more dirt in them thar hills. Letts see who ASIC will shoot now. lets see how far Babcock and Brown Shares now climb without queries from ASIC and the equally corrupt and sick ASX.