Have a read of the Administrators’ report to creditors on the KPMG (sorry typo on last post) website
The proponent who they tried to get to undertake DOCA was Everblu Capital Pty Ltd, seems they got cold feet. As for a class action see below;
"In large complex administrations, the short time frame associated with Voluntary Administration limits the extent of investigations which can be performed prior to reporting to creditors. Our preliminary investigations have identified c.$17.8m of potential recoveries that warrant further investigation which are summarised below:
Insolvent trading – $11.4m
Unfair preferences – $6.4m
These recovery actions are only available to creditors if KBL is in Liquidation.
Given the complex nature of Australian insolvency law and the potential defences available to Directors and other parties, the above noted actions are often costly and potentially long dated entailing a high degree of risk and uncertainty with no guarantees of success.
In addition, it is uncertain whether funding would be available to a Liquidator to pursue the above actions, and as such external funding would need to be arranged. Given the risks attached to litigation, external funding is often expensive, and involves creditors forgoing a degree of upside in order to generate the potential for a return from successful litigation (where the alternative return may be zero).
As noted, our investigations are preliminary, should the creditors chose to place KBL into Liquidation a more substantive investigation will be conducted to consider the merits of proceeding with any recovery action having regard to the relative costs and benefits together with the prospects of success and the financial ability of defendants to meet claims. "
Think the best we can hope for is they will declare the shares and worthless before the end of next fin year so we can write off the loss, if the liquidator does conclude wrongdoing ASIC may still take action against directors which is some conciliation
KBL Price at posting:
0.1¢ Sentiment: None Disclosure: Held
