The Australian Securities and Investment Commission (ASIC) announced yesterday that the commission has commenced civil proceedings in the NSW Supreme Court against Jodee Rich, former One.Tel managing director Brad Keeling, former finance director Mark Silbermann and one-time chairman John Greaves.
ASIC said compensation of between AU$30 million and AU$50 million is being sought for the reduction in the value of One.Tel between March 30, 2001 and May 29, 2001 -- the period of time it's alleged that the four defendants failed to fully disclose the company's financial status.
ASIC chairman David Knott said the compensation claim excludes a further AU$50 million liability incurred during this eight-week period, following the settlement of Lucent Technologies claim against One.Tel on the back of the failed full development of the GSM Mobile Network.
"Negotiations between the liquidators, Lucent and its receiver have resulted in Lucent firstly releasing One.Tel from all claims, and secondly, in Lucent acquiring an option to purchase the spectrum licences owned by One.Tel," joint liquidator Peter Walker, of Ferrier Hodgson, said in a statement. "The settlement of the Lucent claims substantially enhances the prospect and timing of a return to creditors," he added.
ASIC has said that compensation recovered will be made available to the liquidator, which believes the full dividend to unsecured creditors will lie in the range of 30 to 35 cents in the dollar, for payment to creditors. Ferrier Hodgson anticipates that an initial dividend would be paid in the first quarter of 2002.
The securities watchdog is also seeking orders from the Supreme Court that each of the four defendants be -disqualified from managing or being a director of any company for such period as the Court thinks fit" and said it believes that the true financial position of One.Tel was not known to the remaining directors of the company, including Lachlan Murdoch and James Packer, until shortly before the appointment of the administrator on 29 May 2001.
Ferrier Hodgson has also begun issuing summons to One.Tel's Australian directors ahead of public examinations expected to take place in March next year.
"To progress investigations, the liquidator has had summonses issued through the Federal Court of Australia for the examination of all Australian directors of the company, including former directors, a number of key employees and a significant number of third parties," Walker said.
Ferrier Hodgson said the examinations are -completely independent of ASIC's current activity".
