Anthony @ Equity Investigations, Dear Anthony, Message Board

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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: SEC-ond-chance who wrote (82933)	1/12/2003 2:29:05 PM
From: StockDung	Read Replies (1) of 122087

WHAT WOULD WE DO WITHOUT THE NEW TEL COMIC STRIP CONTINUING? THE NEW TEL DAILY FUNNIES SHOULD BE INTERESTING IF THE CHARACTERS INVOLVED FACE CRIMINAL CHARGES. "He said potential legal action could possibly recover "tens of millions" of dollars for creditors." "This is all about getting people their money back ... I am not some sort of liquidation junkie." New Tel tipped to liquidate January 12, 2003 THE administrator of failed junior telco New Tel Ltd will recommend creditors vote at a meeting tomorrow in favour of placing the Perth company into liquidation. The recommendation comes despite the administrator receiving a late buy-out offer from Broadband and Wireless Ltd (BWL), believed to be a Hong Kong-based investment company. New Tel owes $40 million to $50 million to employees and creditors - including Optus, which appointed Phil Carter of PricewaterhouseCoopers (PwC) as administrator in December. New Tel's fate may be sealed tomorrow when creditors meet in Sydney to decide whether to place the company into liquidation. Mr Carter said he received another "inadequate" and conditional offer from BWL last week. New Tel's committee of creditors, which include Telstra, AAPT and employee representatives, have so far assessed and rejected all three of BWL's "rescue" plans. The administrator has concerns New Tel has been trading insolvent for more than 12 months and he wants creditors to vote for liquidation to examine the allegation further. A liquidator has powers to unwind transactions stretching back as far as four years relating to directors and associated parties. The BWL camp is represented by Richard Steggall and is believed to be connected to former New Tel chief executive Peter Malone. BWL has been attempting to avoid liquidation and wants creditors to back its latest proposal for a "deed of company arrangements" which will be outlined at tomorrow's creditors meeting. Creditors would have to forgo their rights to pursue New Tel directors for various breaches of duty if they opt not to go into liquidation. Mr Carter told reporters today he was confident about the reasons for his recommendation of liquidation which be believed gave creditors the best chance of recovering their money. "I certainly have the courage of my convictions ... my job is to call it as I see it .. frankly, we would have a stronger hand in potential litigation cases as liquidator," Mr Carter said. He said potential legal action could possibly recover "tens of millions" of dollars for creditors. "This is all about getting people their money back ... I am not some sort of liquidation junkie." Ahead of being placed in administration, BWL attempted to buy more than $20 million of New Tel's debts from Telstra and Optus at a 50 per cent discount, and allegedly spent New Tel money in one of those transactions. New Tel shares were suspended from trading in October after it failed to lodge its audited annual accounts. AAP

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