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To: SEC-ond-chance who wrote (82936)	1/12/2003 3:23:06 PM
From: StockDung	Respond to of 122087

THE U.S COULD LEARN FROM ASTRALIA IN MAKING SUCH A LAW. THERE PROBABLY ARE MANY COMPANIES THAT ARE TRADING INSOLVENT. asic.gov.au One-Tel file ASIC obtains ongoing undertakings from former One.Tel officers Media release 01/446, 14 December 2001 ASIC commences civil proceedings against former One.Tel officers and Chairman Media release 01/441, 12 December 2001 ASIC obtains modified undertakings from former One.Tel officers Media release 01/343, 24 September 2001 ASIC obtains court undertakings freezing assets of former One.Tel managers Media release 01/205, 13 June 2001 ASIC restrains Rich assets Media release 01/199, 8 June 2001 ASIC commences investigation into One.Tel Media release 01/179, 30 May 2001

To: SEC-ond-chance who wrote (82936)	1/12/2003 3:33:50 PM
From: StockDung	Respond to of 122087

"The undertakings also extend to a number of private companies controlled by the defendants" 01/205 ASIC obtains court undertakings freezing assets of former One.Tel managers Wednesday 13 June 2001 Mr David Knott, Chairman of the Australian Securities and Investments Commission (ASIC), today advised that ASIC has obtained Court-enforceable undertakings restraining the disposal of assets by Messrs Jodee Rich, Bradley Keeling and Mark Silbermann. The undertakings to the Court prohibit all three parties from disposing of any property (including monies and securities) subject to a number of conditions. The conditions include meeting ordinary living, business and operating expenses, reasonably incurred legal costs and any liability incurred before 8 June 2001 when it falls due. The undertakings also extend to a number of private companies controlled by the defendants. Messrs Rich, Keeling and Silbermann have undertaken not to leave the country without giving ASIC seven days notice in writing, a statement of the purpose of the trip and a copy of the proposed itinerary. An undertaking was also provided by Mr Rich's wife Maxine, freezing the assets recently transferred to her by her husband. However, ASIC agreed not to seek the freezing of the assets of Beaulieu Holdings, or Ms Nicolet Long (Mr Rich's sister) after receiving undertakings freezing the assets of companies of which she is a director. The proceedings against them have been discontinued and dismissed respectively. The undertakings have been given until 30 September 2001, and the matter will return to court on 24 September 2001. 'Today's undertakings impose extensive restraint on the disposal of assets by Messrs Rich, Keeling and Silbermann. They have extended the scope of the interim orders obtained from the Court last Friday, with appropriate variations, and cover assets which ASIC estimates are worth in excess of $45 million', Mr Knott said. 'Travel restrictions on all three parties will mean that ASIC is able to maintain access to them as our investigations into the collapse of One.Tel continue. 'These undertakings have the force of Court sanction and are a valuable precaution to protect creditor interests while ASIC's investigations continue. 'Today's proceedings do not constitute any finding of wrongdoing against any of the defendants', he said. For further information contact: Kate Harvey ASIC Media Manager Telephone: 02 9911 2097 Mobile: 0401 985 966 End of release

To: SEC-ond-chance who wrote (82936)	1/12/2003 3:36:49 PM
From: StockDung	Read Replies (2) \| Respond to of 122087

NOW THESE ARE TUFF LAWS->"A liquidator has powers to unwind transactions stretching back as far as four years relating to directors and associated parties." New Tel set for liquidation Sunday 12 January 2003, 18:05PM The administrator of failed junior telco New Tel Ltd will recommend creditors vote at a Monday meeting to place 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 Monday's creditors meeting. ©2003 AAP

To: SEC-ond-chance who wrote (82936)	1/12/2003 11:23:40 PM
From: StockDung	Respond to of 122087

"If New Tel is found to have been trading while insolvent at a time when Mr Martino was a director, he may face criminal charges and have assets seized by the courts." "Mr Carter will also try to recover $2.8 million paid by New Tel to its mysterious white knight, Broadband & Wireless (B&W)." "We've already made demands to get the money back from B&W," he said. "He said the presentation would be made by former PwC partner David Humann, who recently joined the B&W cause." "Mr Humann was recently cross-examined in the Federal Court as chairman of collapsed film group Barron Entertainment and is a director of ailing smart card outfit ERG, among a number of other board positions." Martino's New Tel denial Michael Sainsbury January 13, 2003 FORMER New Tel director and Deloitte Touche Tohmatsu chief executive Domenic Martino claims the failed telco was not insolvent while he was on the board, despite the concerns to the contrary of New Tel's administrator and the companies regulator. In a report to creditors last week, PricewaterhouseCoopers partner Phil Carter said New Tel might have been trading while insolvent for a year before it collapsed in early December. The Australian Securities and Investments Commission is understood to share Mr Carter's concerns. It investigated New Tel last year. If New Tel is found to have been trading while insolvent at a time when Mr Martino was a director, he may face criminal charges and have assets seized by the courts. Mr Martino said he had not been interviewed by the ASIC. Mr Martino resigned from New Tel last February when he took the top job at Deloitte - within the 12-month timetable of concern. But he remained associated with New Tel, helping to find a rescue package for New Tel as it fell apart in the second half of 2002. "They came and asked me to help them out," he said. Mr Martino told The Australian yesterday he was convinced New Tel was not trading while insolvent while he was signing off its accounts as a director. He said Mr Carter had not had a chance to properly investigate New Tel at this stage. Mr Martino also admitted he had spoken to big-spending New Tel founder and chief executive Peter Malone over Christmas. Asked if they had discussed New Tel's situation, Mr Martino said: "I think he rang me to wish me Happy Christmas." He claims he is no longer involved with New Tel despite the company remaining a Deloitte customer. "They're a client, and like any client we'll help if we can," he said. Mr Carter hopes to pursue legal actions totalling tens of millions of dollars against executives and directors of New Tel if he is handed liquidator's powers at a meeting today. He said he will also expedite moves to pay more than 60 NewTel staff their outstanding superannuation and leave entitlements but will take longer to resolve redundancy payments. He intended to send letters to staff this week indicating the money they were owed with a view to a payout as early as February. Mr Carter will also try to recover $2.8 million paid by New Tel to its mysterious white knight, Broadband & Wireless (B&W). "We've already made demands to get the money back from B&W," he said. A last-minute bid by B&W - the third by the company - has been rejected as inadequate by Mr Carter. Creditors would be handed additional material by the administrator outlining B&W's proposal along with the recommendation for liquidation, Mr Carter said yesterday. Still, Mr Carter will give B&W the chance to outline its proposal to the meeting. He said the presentation would be made by former PwC partner David Humann, who recently joined the B&W cause. Mr Humann was recently cross-examined in the Federal Court as chairman of collapsed film group Barron Entertainment and is a director of ailing smart card outfit ERG, among a number of other board positions. Mr Carter urged creditors to attend today's meeting if possible. "It's an important meeting which will effectively decide New Tel's future," Mr Carter said. "Most of its assets are represented by legal action to unwind transactions and pursue. All our potential big-ticket recoveries involve legal action." Mr Carter said New Tel's only other asset, its customer base, was intact. The Australian

To: SEC-ond-chance who wrote (82936)	1/12/2003 11:29:53 PM
From: StockDung	Respond to of 122087

"Fellow Perth-based director David Humann is likely to be questioned tomorrow or Thursday." 216.239.51.100 Barron sequel to probe solvency By Neale Prior DIRECTORS of collapsed film group Barron Entertainment face a courtroom sequel to their company's $4 million collapse. Two Perth-based directors will be examined in the Federal Court this week as part of inquiries by liquidators into suspicions the company traded while insolvent before it fell into administration in July last year. Barron's long-standing creative driver and director Paul Barron is expected in the witness box this morning to be questioned by lawyers representing liquidators Bryan Hughes and Vince Smith, of West Perth accounting firm Norgard Clohessy. Fellow Perth-based director David Humann is likely to be questioned tomorrow or Thursday. The probe comes after the collapse in February of a restructuring deal that would have resulted in the company being taken over by Melbourne-based film and entertainment financier Sam Manusco. Barron consequently fell into liquidation. The restructure could have given secured creditors up to 60¢ in the dollar and unsecured creditors up to 12¢, and saved directors from the prospect of insolvent trading actions. The company faces unsecured creditor claims of about $4 million. It has a secured claim from National Australia Bank on a loan with a principal of about $230,000, but which has roughly doubled because of various receivership and default costs. The liquidators have estimated the company could have been insolvent as far back as June 2000 and incurred between $2 million and $3 million in extra debts during the period of its possible insolvency. Mr Smith, a Norgard Clohessy partner, said the film group had virtually ceased production activities around October 2000 after being unable to secure funding. M R SMITH said he and Mr Hughes were confining their examination to the Perth-based directors to clarify their view about the financial state of the group before its collapse. The liquidators would examine two Melbourne-based directors, Warwick Kerridge and John Davies, if the liquidators' views were confirmed in the initial examination, Mr Smith said. He said the liquidators would consider possible litigation against the directors based on their analysis of evidence. A successful case could significantly increase the return to secured and unsecured creditors, who ranked equally in splitting the spoils of any successful insolvent trading litigation. Mr Smith said Barron's film library was controlled by NAB-appointed receivers and was tied up by various distribution contracts as well as claims by various parties, such as unpaid writers. The library had been valued at about $450,000 and the company had equipment worth about $50,000. © 2002 West Australian Newspapers Limited All Rights Reserved. Top Home