Losses of at least half a billion dollars, dodgy share deals, an unco-operative approach to administators, poor record keeping … the directors of failed car parts group Ion are unlikely to emerge smelling of roses from the company’s collapse last year. In their second report to creditors, the company’s administrators McGrath Nicol reveal insiders associated with the board and senior employees were selling shares from August 2004 to the time of the company’s collapse on 7 December, 2004. In that time, as the share price fell from around $1.70 to 93c, roughly four million Ion shares were sold by insiders. Administrators haven’t determined if there were any breaches of laws, but ASIC has been kept informed and more information will be passed on.
When Ion collapsed last December it was something of a surprise – there was no sign of any insolvency before the slide into administration.
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