Losses of at least half a billion dollars, dodgy share deals, an unco-operative approach to administators, poor record keeping … the directors of failed car parts group Ion are unlikely to emerge smelling of roses from the company’s collapse last year. In their second report to creditors, the company’s administrators McGrath Nicol reveal insiders associated with the board and senior employees were selling shares from August 2004 to the time of the company’s collapse on 7 December, 2004. In that time, as the share price fell from around $1.70 to 93c, roughly four million Ion shares were sold by insiders. Administrators haven’t determined if there were any breaches of laws, but ASIC has been kept informed and more information will be passed on.
When Ion collapsed last December it was something of a surprise – there was no sign of any insolvency before the slide into administration.
Read more on the Crikey website here.
Crikey is committed to hosting lively discussions. Help us keep the conversation useful, interesting and welcoming. We aim to publish comments quickly in the interest of promoting robust conversation, but we’re a small team and we deploy filters to protect against legal risk. Occasionally your comment may be held up while we review, but we’re working as fast as we can to keep the conversation rolling.
The Crikey comment section is members-only content. Please subscribe to leave a comment.
The Crikey comment section is members-only content. Please login to leave a comment.