Ordinary shareholders of the collapsed Forge Group will receive no payments from the sale of the company’s assets, liquidator Ferrier Hodgson revealed.
Confirming what many had already surmised, it said the sale of Forge assets would not amount to enough to pay out the shares.
And while shareholders will be entitled to declare a capital loss for the year equal to the reduced cost base of the shares, those who received shares under an employer scheme are ineligible, The West Australian reported.
Forge called in administrators on February 11 after ANZ Bank withdrew its support for the embattled company as revelation s emerged it had amounted debts of about $800 million.
Investigations are underway into whether the company was trading while insolvent since Novemner 2013.
If it is found the company was trading while insolvent, a “no transaction” argument could be used in court which means investors should not have been able to purchase shares in an insolvent company.
A damage or loss value would then be calculated on what investors paid for their shares from when Forge began trading insolvent.
Ferrier Hodgson has previously said it could take 12 months to investigate why the company failed and determine how much of the $800 million owed can be recovered.