Administrator: wind up One.Tel - News

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This story was printed from ZDNet Australia.
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Administrator: wind up One.Tel

By Rachel Lebihan, ZDNet Australia
July 16, 2001
URL: http://www.zdnet.com.au/news/soa/Administrator-wind-up-One-Tel/0,139023165,120240757,00.htm

Administrators of the defunct telco One.Tel have recommended that the company be wound up in its report to creditors, released today.

Ferrier and Hodgson were appointed voluntary administrator for the failed telco on May 29.

"It is the recommendation of the Administrators that the winding up of One.Tel Limited would be in the best interests of the creditors," Ferrier Hodgson said in an 80-page report distributed to creditors prior to the second creditors' meeting to be held in Sydney on July 24.

The second meeting of creditors usually has to be held within a fortnight of a company's collapse, but the financial mess left behind by One.Tel meant the convening period had to be extended by the Supreme Court on both June 15 and July 3.

Commencing at 11am in the Harbourside Auditorium 1, Sydney Convention & Exhibition Centre, the meeting will receive the administrator's report, dealing with the company's business, property, affairs and financial circumstances.

At the meeting creditors will resolve whether a deed of company agreement is executed, whether the administration should end, or if the company should be wound up.

No formal deed of company arrangement has been made and if creditors' chose to end the administration, they would have to pursue their own means of recovery against One.Tel -- "which in all likelihood would culminate in it being wound up in due course," the report says.

Therefore, "the interests of creditors and the distribution of available assets to creditors are best protected through the wind up of the company."

One.Tel, which sacked 1200 workers on the back of its demise, auctioned off a mass of property last week and has a handful of staff on board who are assisting with asset realisations and the maintenance of financial information.