Ostwald report sent to watchdog

THE administrators of fallen company, Ostwald Bros, have lodged a report with the national business watchdog recommending further investigation into the conduct of the firm.

In a report handed to creditors last Friday, liquidators PricewaterhouseCoopers have questioned the behaviour of the firm’s directors.

The report has been lodged with the Australian Securities and Investments Commission for its consideration.

PwC found the company could have been trading insolvently for more than a year, before going into administration.

Ostwald Bros incurred a debt to creditors of approximately $18.8 million during the period between July 2016 and August 2017.

The PwC report states the liquidators believe the company may have breached the Corporations Act during this period.

“While the directors may consider they made this decision in good faith and rationally believe this was in the best interest of the corporation, we do not agree that this was the case,” the report states.

“We consider that a reasonable person in their position would have ceased trading well before August 2017 and incurring debts in excess of $18 million which remain unpaid.”

Four companies were placed into liquidation by PwC: Ostwald Bros, Ostwald Bros Civil, Ostwald Facilities and Accommodation and M2O Water.