ASIC appeals to have Walton liquidator dismissed
THE Australian Securities and Investments Commission has appealed a Supreme Court decision rejecting its bid to dismiss Walton liquidator Lawler Draper Dillon.
The collapse of Walton Construction and Walton Queensland in October last year left debts first listed at $49 million, but now reckoned to be in the order of $69 million, to unsecured creditors.
Sunshine Coast sub-contractors who worked for Walton Queensland on the $21 million Nambour Coles project lost $2.9 million.
No date has yet been set for the appeal.
Sub-contractor creditors of Lewton Asset Services also will attempt to replace its appointed liquidator on Monday.
Lewton was one of two phoenix companies set up in the months before the Walton collapse to take over its profitable contracts. It went into liquidation a week ago.
In December 2013, ASIC applied to the court to remove Lawler Draper Dillon as Walton liquidators, for a perceived lack of independence.
ASIC argued those transactions and the referral relationship were not sufficiently disclosed to creditors at the appropriate time and that a perceived lack of independence existed.
The court refused ASIC's application.
Judge Davies, whose decision is being appealed, said when handing it down that a "fair-minded observer" would know that the liquidators' firm was commonly referred voluntary administrations and other insolvency work by solicitors, business advisers and accountants.
Mawson Group director Pat McCurry has failed to respond questions from the Daily about the advice his company gave its director Daniel Casey before he set up Lewton Asset Services.
Nor did he respond to queries about the ongoing viability of Tantallon.
Queensland Rail said yesterday Tantallon had two current contracts worth less than $3 million with Queensland Rail for work at Central Station and Mayne Control.
"Queensland Rail has received statutory declarations from Tantallon confirming all subcontractors have been paid for work they have done for Queensland Rail on behalf of Tantallon,'' a spokesman said.