If anyone has the minutes of the 1st creditors meeting could they email them
to me please.


_____

From: nick4mony [mailto:no_reply@...]
Sent: Monday, 3 March 2008 11:44 PM
To: otmushrooms@...
Subject: [Unpaid Mushrooms] New info sheet from ASIC - Independence



In some circles, the independence of the administrators has been a hot
topic (particularly for Mobilesoft).

I still think that Australia should adopt a round-robin (or random)
allocation of Insolvency Practitioners to cases of insolvency, but
anyway, onto the real news ...

Jirsch Sutherland have quietly put ASIC's latest document on their web
server - titled "Independence of External Administrators - A guide for
creditors". This is an ASIC leaflet and contains no material from
Jirsch Sutherland.

URL on JS's server: http://shorterlink. <http://shorterlink.com/?8YFENU>
com/?8YFENU (redirects to:
http://www.jirschsu
<http://www.jirschsutherland.com.au/Upload/INDEPENDENCE%20OF%20EXTERNAL%20AD
MINISTRATORS%20-%20A%20GUIDE%20FOR%20CREDITORS1.pdf>
therland.com.au/Upload/INDEPENDENCE%20OF%20EXTERNAL%20ADMINISTRATORS%20-%20A
%20GUIDE%20FOR%20CREDITORS1.pdf
)

Various people may recall my message earlier (message #558, Tue Oct
16, 2007 6:11 am), URL
http://au.groups. <http://au.groups.yahoo.com/group/otmushrooms/message/558>
yahoo.com/group/otmushrooms/message/558 , raising
strong concerns about Rod Sutherland's conflict of interest.

While the leaflet does not mention the scenarios described in #558, it
does mention that they should treat the various groups of creditors
fairly. The way I see things, this isn't likely.

The question is ... what can we do about it?

-> I did make some enquiries of a second liquidator (Ken Stout - from
Antony's message #491), to replace the administrators at the first
meeting, but he was reluctant - and a point he made was the Blundall
Superannuation Fund (the secured creditor) could have put the company
into receivership if I was successful in replacing the administrator.

-> A few submissions to the Senate Enquiry a few years ago suggested
that a centralised round robin or random allocation reigime should
operate (the person(s) make a call to a central hotline and the
hotline allocates the next available administrator to the job).

-> In general, I think that it is a valid strategy to attempt to
replace the administrator at the first meeting. The leaflet points
out our rights to replace the administrator at the first meeting, at
the second meeting (either when a Deed is adopted or when Liquidation
is favoured), and as other circumstances arise. This is especially if
details like the Ice TV issues come out of the woodwork. The trouble
is, the Ice TV details took some time to surface, and it may have
swayed Ken if I was able to give him those details straight away.

-> At this (late) stage, there's not a lot that can be done, apart
from raising complaints with ASIC.

-> In these complaints, we should suggest a round-robin reigime (this
is strictly not relevant to the complaint, but it's always worth
throwing in there).

Nick Bishop.







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