ONE.TEL LIMITED (ASX.ONE)

this company deregistered today

Jodee Rich has decided not to proceed with a damages suit against James Packer and Lachlan Murdoch over the collapse of the company in 2001 - Rich criticised a suit by One.Tel's special purpose liquidator, Paul Weston, also based on the abandonment of the rights issue, which is seeking damages of $244 million and which remains on foot. "I am concerned that the rights issue action by [Mr Weston] will continue for many years, spend millions of dollars in legal fees with the risk of little or no return to creditors," Mr Rich said

ASIC has lodged a Notice of Intention to Appeal in the NSW Court of Appeal in respect of the 18 November 2009 decision of the NSW Supreme Court dismissing ASIC's civil penalty proceedings against One.Tel's former joint Managing Director, Mr Jodee Rich and the company's Finance Director, Mr Mark Silbermann

reports that the corporate regulator has failed in its attempts to ban former One.Tel directors Jodee Rich and Mark Silbermann from sitting on company boards for the next decade and to force the pair to compensate thousands of creditors - the NSW Supreme Court judge Robert Austin this afternoon ruled that ASIC had failed to prove its case - he said, "ASIC failed to prove any facet of its pleaded case against either defendant"

reports that the longstanding dispute between One.Tel's special purpose liquidator, the Pitcher Partners partner Paul Weston, and its committee of creditors has degenerated into attempts by each side to remove the other - the NSW Supreme Court heard yesterday that the representative ''committee of inspection'' had laid the groundwork to remove Mr Weston, whose mandate is exploring whether to sue News Limited and Publishing and Broadcasting Ltd over the telephone company's 2001 collapse - there are also threats of a lawsuit against the general purpose liquidator, the Ferrier Hodgson partner Steve Sherman, and an invitation to the McGrathNicol partner Tony McGrath, to chair a creditors meeting as an independent supervisor

reports that the NSW Court of Appeal has ruled that the liquidator of One.Tel can pursue a claim under a policy issued by CGU for compensation owed by One.Tel's former chairman, John Greaves (Greaves reached a $20 million settlement in 2004 with the corporate regulator, which had brought a case on behalf of One.Tel's creditors alleging breach of duty - Mr Greaves struck an arrangement with his creditors at the same time, which included assigning his rights under the CGU policy)

with regard to the compensation suit by the Australian Securities and Investments Commission against Jodee Rich and One.Tel's finance director, Mark Silbermann, the Herald reports today that hearings have finished in that matter and judgment is pending

the Sydney Morning Herald reports that yesterday One.Tel's liquidator, the Ferrier Hodgson partner Steve Sherman, reached an out-of-court settlement with One.Tel's managing director, Jodee Rich - that leaves only Rodney Adler as the last remaining defendant in a civil compensation suit to recover $14 million paid in bonuses to One.Tel executives the year before the telephone company collapsed - Justice Patricia Bergin was asked to list the matter against Adler again tomorrow

a statement of claim is filed in the NSW Supreme Court by the liquidator Paul Weston over the cancellation of a plan for One.Tel to raise $132m by issuing new shares - the targets of the action are Publishing & Broadcasting Ltd, News Ltd, the company's eight directors, its solicitor Freehills, its accountant Ernst & Young and its liquidator Ferrier Hodgson

there is a two-month adjournment to June 5 in ASIC's case against Jodee Rich and One.Tel's former finance director, Mark Silbermann, which is expected to be followed by six to eight weeks of cross-examination

reports that the judge, in the case against former directors Jodee Rich and Mark Silbermann, has rejected a second expert's report by a partner of McGrathNicol & Partners, Murray Smith

reports that the liquidators (paid $10.3m for their work from May 2001 to September 2004) have received nothing since and have taken their dispute to the NSW Supreme Court - the creditors committee is not approving fees and the liquidators sought court approval to go to all creditors for approval - the judge said it was open to the liquidators to ask all creditors to reconsider the membership of the committee

in the ASIC case against Jodee Rich and Mark Silbermann, the Supreme Court rules that a report by PwC independent expert, Paul Carter, was deficient - this report is central to ASIC's case and so it is back to the drawing board for the regulator

former chairman John Greaves admits that during the period January 2001 to 30 March 2001, he failed to take the steps that he should have in order to ensure that he and the board of One.Tel properly monitored management and were aware of the true financial position of the company - as part of a settlement with ASIC he is banned from managing a corporation for four years and is liable to compensate One.Tel to the tune of $20m

ASIC case (see below) against Rich and Silberman commences

a judge of the NSW Supreme Court today reserved his decision in relation to a proposed settlement between former One.Tel chairman John Greaves and ASIC - the settlement agreement involves a four-year directorship ban and a $20 million fine for Greaves

class action - Dennis & Co confirm they are representing about 500 shareholders and have a lead plaintiff - they are awaiting the ASIC case against Messrs Rich, Silberman and Greaves before proceeding further

special purpose liquidator withdraws examination summonses he issued last month to examine James Packer and Lachlan Murdoch and others in connection with the cancellation of a $132m rights issue, in exchange for their waiver of the statutory three-year limitation period - a case may be mounted later after the ASIC case against Messrs Rich, Silbermann and Greaves is concluded

reports that the Packer and Murdoch camps have opposed attempts by a One.Tel special purpose liquidator to examine them in connection with the cancellation of a $132m rights issue which had been proposed shortly before the company collapsed

creditors of the company persuade a Supreme Court judge to appoint a special purpose liquidator to investigate the $132m rights issue which was pulled by the Packer/Murdoch camps only two weeks before the company collapsed - there was a suggestion that liquidators Steve Sherman and Peter Walker of Ferrier Hodgson may have had a conflict of interest in deciding not to pursue James Packer and Lachlan Murdoch over the cancellation of the issue

class action update - solicitors are awaiting the outcome of the ASIC case which will have a significant bearing on the shareholders' case against a number of people

seeking update on the class action from Dennis & Co

the liquidators are currently conducting an inquiry in the Australian Federal Court into the operations of the failed company to determine if any action can be taken to recover monies for the benefit of creditors (not shareholders!) - issues relate to possible insolvent trading, directors' duties, renounceable rights issue and the payment of director bonuses

to clear up any misinterpretation and to avoid the significant distraction caused by another Supreme Court action", Jodee Rich agrees to terminate the Family Law Agreement and transfer assets back to himself as if the Agreement had never been made

Family Court finding that it has no jurisdiction to hear an ASIC challenge to the transfer of Jodee Rich's assets - ASIC will now try to overturn the agreement in the NSW Supreme Court

class action update - Dennis & Co have drafted a statement of claim and expect to have it finalised and registered with the court within 2 to 3 months - they will shortly be writing to shareholders inviting their participation in the action

reports that James Packer and Lachlan Murdoch will be called as witnesses in ASIC's civil action against Messrs Rich, Greaves and Silbermann

court rules Messrs Rich, Greaves and Silberman will have to wait until the outcome of proceedings mounted aginst them by ASIC before their indemnity insurers CGU will need to consider paying their legal defence costs

reports that Brad Keeling has signed over about $1m in personal assets (against debts of about $100m!) and in return has received a clean financial slate

reports that liquidator has launched civil proceedings against Rich, Keeling (and their companies) Adler and Greaves alleging breach of fiduciary and other duties

Dennis & Company advise shareholders of their intention to initiate a class action against directors and the auditors on the grounds of misleading and deceptive conduct and negligence - those shareholders who owned shares in One.Tel as at the date of administration (29 May 2001) who were not directors, officers or related entities are members of the class - shareholders have been asked to contribute $550 (incl GST) to be a part of the class action

directors Rich, Silberman and Greaves win legal battle to get access to legal documents and court will rule next week on which ones they can see

pursuant to court orders Brad Keeling banned from being a director (or otherwise being involved in the management of any corporation) for 10 years, is liable to pay compensation of $92 million to One.Tel (ASIC claims that Keeling, Rich, Silberman and Greaves are jointly and severally liable for this compensation) and has agreed to pay ASIC's costs of $750,000 - this provides the liquidator of One.Tel with a legal basis to seek recovery of funds from Mr Keeling and his insurers

reports that Brad Keeling Management is being chased by One.Tel's liquidator Steve Sherman for the return of the bonus and some other money involved in One.Tel share buybacks

court refuses an application by former chairman John Greaves who applied to strike out a claim brought by ASIC on the basis that the duties of a Chairman were not, at law, as extensive as ASIC wished to establish

with the company's liquidators chasing Brad Keeling for $19m in relation to his role with the failed company, Mr Keeling puts three of his privately held companies into voluntary administration - he believes this is "the best way to preserve the full value of these companies for both shareholders and creditors"

liquidators will not be taking action to recover $60m in unused advertising from News and PBL, having instead accepted a payment of $21.5m in full settlement

One.Tel liquidators will take legal action to recover the $15 million paid in bonuses to Jodee Rich and Brad Keeling

last day of liquidator's inquiry into the circumstances of the company's collapse - liquidator will now examine the evidence and determine what action, if any will be taken, including the possible re-examination of witnesses

reports that the company's insurers (CGU Insurance) are refusing liability under a $50 million indemnity policy on the grounds of non-disclosure and misrepresentation

PBL threatens to counter-sue liquidators if they bring action over the $132 m rights issue aborted

liquidator's examination of personnel associated with company's collapse resumes

ATO issues Tax Determination 2002/17 essentially confirming capital loss can be realised

ASIC ups compensation claim against four directors to $93m (Rich, Keeling, Silberman, Greaves) a case which begins in April 2003

a loss declaration has been issued and the capital loss can therefore be claimed in the financial year the declaration is issued

liquidators advise of intention of paying first interim dividend to creditors of 10c in $

liquidators commence public examination of key personnel associated with company

ASIC commences proceedings against four directors (Rich, Keeling, Silberman, Greaves)

delisted due to failure to pay annual listing fee

creditors resolve that the company be wound up

Mr Steve Sherman and Mr Peter Walker of Ferrier Hodgson appointed liquidators

ASIC obtains Court orders restraining the disposal of assets by Messrs Rich, Keeling and Silberman

directors advise that the company is insolvent

ASIC commences formal investigation into company

ASX trading suspension at the request of ONE

Mr Steve Sherman and Mr Peter Walker of Ferrier Hodgson appointed administrators

requests that a trading halt be applied to its securities

board resolves to undertake a $132m rights issue

Joint MDs Mr Rich and Mr Keeling resign