Originally Posted by
racedo
Profit transfer is irrelevant, it is the cash which is key here. A subsidary can refuse to transfer the cash / delay or do everything it can to ensure it is kept within its business. In doing this of course they are breaching ownership rules but when it comes to this it really is about survival. Holding £1 million in cash may mean the difference in you being able to open the doors on a monday and not. If company goes bust at the weekend the cash stays in subsidaries account and while still may owe it you can take a lot longer to pay while surviving. Basically if making money in all likelihood someone will buy it quickly.
They are different legal entities, so any cash or profit transfer must have been based on contractual agreements to that effect - which in all likelihood Condor had cause to terminate when TC was about to go under (as TC was no longer in a position to honour its part of the agreement).