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Initial report shows Forge may have been insolvent in November

Initial report shows Forge may have been insolvent in November

Photo by Bloomberg

12th March 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – The administrators of mining contractor Forge Group have recommended the launch of a full investigation into the company, after a preliminary probe found that the company may have been trading while insolvent as early as November last year, media reports said on Wednesday.

The Australian also reported that Forge board’s decision to pay bonuses to directors in the lead-up to the financial collapse of the company would come under scrutiny.

Forge called in Ferrier Hodgson as administrator in February this year, after financing major ANZ withdrew its support of the company as major financial losses emerged. The company had continued to trade on the ASX until February 10.

Some 1 300 jobs have been cut across Forge’s Australian operations, and the company was facing a legal battle as litigation fund Bentham IMF was gearing up to launch a class action against the company and its directors, claiming breaches of continued disclosure obligations.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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