Some details of a confidential settlement in a court case over the failed advertising agency Ambient Rail can now be revealed.
The Federal Court action alleging "asset stripping" of Ambient Rail and of “improper” conduct by industry figure Mark Fishwick was settled in March this year after just one day of a hearing which had been expected to run for six days.
Brad Tonks, the liquidator of Ambient Rail, had launched the civil action to recover funds which he argued should have been due the advertising agency which went into administration in 2014.
The case centred 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 had 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.
Tonks, a partner at insolvency specialists PKF, would not reveal the details of the settlement with Fishwick and Captive Vision Outdoor.
However, as a liquidator he is required to lodge financial details of Ambient Rail with the corporate regulator, ASIC.
In a filing to ASIC, Tonks lists a total of $933,333.00 for “Settlement of Claim” broken up as:
Conder was previously part of the liquidator’s claim.
Tonks listed total payments made at $3,136,555, of which $2,042,746.98 went to the litigation funder, Premier Litigation Funding.
Ambient Rail still has some money, $45,804, after lawyers were paid $557,600.80 and Tonks as liquidator was listed as receiving $11,646.25.
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