Lack of Justice in Insolvency !?

It is the time for politicians to get it right!

Too much power has been given to the administrators and yet the current insolvency act and the inaction by the regulator ASIC do not promote fairness in the administration process and effectively orchestrating a liquidation of a national significant company in Australia.

There are similarities in the Oswals/ANZ story to the way that the current Arrium administration is going. Despite improving market fundamentals and receiving almost $1.7b from the sale of Molycop assets, the administrators are grossly ignoring the shareholders’ petition and submissions, and to push for the sale of the all-important steel assets to third parties in a fire sales condition! Creditors, in particular many trade creditors and suppliers are denied the opportunity to get 100% of their monies back.

According to the Oswal/ANZ article by ABC

"...Indian tycoons Pankaj and Radhika Oswal are suing the ANZ Bank and receivers for $1.5 billion over the sale of their Australian fertiliser business, arguing their share of the company was undersold.

Receivers appointed by the ANZ sold the Oswal's 65 per cent share of the company for $US560 million, however the couple said the share was undersold and was actually worth close to $1.4 billion.

"Not only was it a breach of selling any asset rule 101, as it turns out it's a break of a duty of a receiver," Mr Bannon said..."