The Australian Securities and Investments Commission (ASIC) has approved funding for an investigation into the collapse of Australian white goods business Kleenmaid, with a focus on insolvent trading.
The findings of the investigation might be used for civil action against the company, said joint liquidator and Deloitte partner, Richard Hughes.
“We will provide a detailed report to ASIC and then it is their decision whether or not they will bring a criminal case against the directors,” he said.
“At the same time the liquidators will use the findings of the investigation as the basis for any civil action that we may bring to recoup monies on behalf of creditors.
“We will be providing an update on the investigation in the next few months as it is a very complex matter that will take some time to fully investigate. At this stage I would ask the creditors and consumers who have lost money to be patient while we continue our enquiries.”
Insolvent trading can attract a fine of up to $220,000 or prison for up to five years, as well as a director’s disqualification.