Court removes Hellyer Metals liquidator for failed asset investigation
A Federal Court judge removed a liquidator. The liquidator failed to investigate millions in assets that disappeared.
A Federal Court judge has sacked the liquidator of mining company Hellyer Metals. Justice Shaun McElwaine found he failed to investigate a suspicious asset transfer.
Just weeks before a court freezing order, Hellyer Metals moved its only valuable assets. These assets were shares in the gold mine.
They went to a new business controlled by the old directors' associates. They paid nothing for it, the judge found.
Liam Thomas Bailey billed only 30 hours for investigations over several months. He did not demand the company's accounting records.
He sent his draft report to the former directors for comments before finishing it. Under cross-examination, Bailey admitted he put his personal interests above creditors' interests.
The judge said this destroyed confidence in his fairness. Bailey has been replaced by Hobart-based liquidator Adam Johnston.
- 36.4 million dollars
- Lawsuit amount
- 25 million dollars
- Business deal amount
- 30 hours over several months
- Investigation hours billed
- Justice Shaun McElwaine
- Judge who removed liquidator
Why it mattersThe removal shows courts will hold liquidators accountable. They do this when liquidators fail to recover assets for creditors owed millions.
AustraliaAustralian creditors and the mining sector see a Federal Court enforcement of liquidators' core duty to investigate asset transfers that benefit insiders at creditors' expense.
Corroborated byThe Advocate
✓ Claims checked against the source. checked 11 h ago
