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02/11/18
21:57
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Originally posted by StephenGay
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Hi New to this discussion. I was originally an owner of Gem Exploration (1988) which after various transformations became Merlin. I was always concerned about anything to do with Joe Gutnick; and enquiries into Mordecai have pretty well indicated that he is Joe's henchman. I think in the last year Joe and Mordecai had some chance to redeem themselves. However I tend to agree that the responses to ASIC by Merlin are so bad that the situation is unresolvable.
I am unsure of the powers that ASIC has, whether there is grounds for legal action. However to me there are two options: 1. the Company is entirely delisted. 2. AIC (somehow) force all the Directors to be replaced. I do not think Merlin can continue as is.
With respect to 1, I would expect Merlin would soon go to voluntary insolvency.
In the event of 2 I doubt that any new set of Directors would be able to deal with the issues. This means that I expect Merlin will go into receivership either way. But in the second option there is more likelihood of legal action against (all) the Directors.
This means that option 1 is probably the preferred path for the Directors as they may be able to avoid legal action.
A receiver may actually be able to recover debts etc. and may well also be able to sell the assets - and this is a better scenario than keep pumping money to Merlin for 'odd' loans to related Companies. Truly sorry that my comments are pessimistic. I have to front up to my wife at some stage and tell her our investment in Merlin was a dud.
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ASIC an impose all sorts of restrictions on shady dealers. Let's hope they get interested in what looks like inexplicable behaviour by the directors of MED.