Originally Posted by
Dale Hardale
Begs the question - if the company is found to be already insolvent, when were the directors first aware that solvency was a real problem and did they act legally ??
You're only trading insolvent when you cannot pay your debts as and when they
fall due. They allegedly had cash in the bank close to 1 bil so I doubt they were trading insolvent. A number of comments in the media made the point that if they whittled that cash position down before seeking out a buyer it would die, thus, I guess, they chose to enter vol admin to make it as attractive as possible with the best chance of preventing its collapse.
Edit: as of 5.02 (EST I guess) SMH reports the Admin claims 7B in debt in submitted court docs.