--- In otmushrooms@..., Elizabeth Fullerton
<laslig@o...> wrote:
> well, at least the system works. that system, anyway.

... which is a Receivership.

> we simply chose the wrong system.

... being a Voluntary Administration and a Deed of Company Arrangement.

The real question is whether a receivership is open to the same abuses
as a VA/DoCA. Other questions:
1. Is there scope in a receivership for a Deed of Company Arrangement?
2. Is there scope to disturb the priorities of creditors in a
receivership (or a DoCA derived from receivership)?

For those who haven't delved into the Public File Archives, there is a
document that Theo wrote, called GEERS.doc, which states that it is
conceivable that under a Liquidation scenario, it is open to sell the
business as a going concern.

The advantage of this kind of process is that the liquidation is a
very controlled process, and while there might be arguments of
commercial judgement (eg choosing a buyer and a price), the
distribution of money is very predictable, and GEERS is sure to pay
those workers who are let go.

The disadvantage is that (in most cases) the Directors lose the business.

Nick Bishop
-----
Compulsory super was rejected 90:10 in a New Zealand referendum in 1996
-oOo-