Claims made over I.E.L. action

Press, 7 April 1979, Page 19

Claims made over I.E.L. action

NZPA staff correspondent Sydney

Industrial Equity Limited, the Australian subsidiary of Brierley Investments, Ltd, is facing possible court action

over the liquidation of a Mel-bourne-based subsidiary, Colmax Electric Pty, Ltd. Colmax went into liquidation in February, and according to the statement of affairs had an estimated deficiency of SI.7M. Unsecured creditors were said to be owed about S2M. ; The company was put into ; liquidation on the petition of Colmax itself, and its parent i company, another I.E.L. sub- ■ sidiary, Second Century Holdings, Ltd. Press reports at the time said I.E.L. would not honour j Colmax debts, and that creIditors would have to depend jon assets of Colmax to receive anv payment for the .goods and services they provided to Coimax. i One of the main creditors, j Kemtron, Ltd, a subsidiary of i Lawrence and Hanson, has Tiled a writ against the di--1 rectors of 1.E.L.. the directors !of Colmax, and I.E.L. itself ] alleging various cases of mis- [ representation. 1 The writ claims Lawrence and Hansen was owed I $152,703.

Mr R. A. Brierley, the chairman of 1.E.L., confirmed receipt of the writ, but would not comment further. He said it had been passed on to his legal advisers. It is believed that no date for a court hearing has been set.

The Australian “Financial Review” said recently that the case would throw considerable light on what are “true and fair” accounts today,and was likely to be vigorously defended.