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Hastie creditors vote to liquidate

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AAP

2013-01-31

Creditors of collapsed engineering conglomerate Hastie Group have unanimously voted for all 42 of the company's subsidiaries to be placed into liquidation.

Liquidator PPB Advisory said the creditors voted at a number of meetings across the country over the past two days.

A PPB Advisory spokesman said liquidators have greater rights to investigate and examine the affairs of the company.

This includes, subject to funding, conducting examinations of persons of interest, which may include directors, auditors and advisers to Hastie Group.

In its second creditors' report, PPB Advisory said that Hastie Group directors may have breached their duties as the company collapsed in 2012 under poor management.

The report said Hastie failed because of poor strategic, operational and financial management and increased competition.

It said creditors may be able to claim compensation against the directors for breaching their duties.

Hastie appointed administrators last May after talks with banks and new investors to extend its loans broke down when the company discovered an employee had been falsifying accounts.

The company was found to owe its bankers bankers $529.9 million and other creditors about $100 million.