The liquidator of failed advertising agency Ambient Rail, who has launched a Federal Court hearing alleging asset stripping by industry figure Mark Fishwick, has a deal to close the legal action.
Ambient Rail liquidator Brad Tonks, a partner at insolvency specialists PKF, brought the Federal Court action to recover funds which he argues should have been due the advertising agency which went into administration in 2014.
The case centres on an alleged scheme to move a valuable contract, with the then APN Outdoor, to sell billboard space for NSW Rail and Metro Trains Melbourne (MTM) to a new company, Captive Vision Outdoor.
The actions have been described in court as phoenixing, which the Australian Tax Office explains is when a company is liquidated, wound up or abandoned to avoid paying its debts.
Steven Golledge, SC, representing the liquidator, today told the court: "In principle agreement has been reached."
The court was adjourned by the Federal Court judge, Justice Markovic, while lawyers representing the liquidator and those for Fishwick work through details of the agreement.
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