Quote:
Originally Posted by MLSchaff
Only secured creditors should be paid before players, and that payment would be based on the realization of proceeds from the specific security held by that creditor, unless there are blanket liens on Tusk. In the case of a blanket lien (all assets are considered security), than that creditor would be paid in full before any payment is made to any unsecured creditor - which is the class that players appear to fall into.
It is important for us to find out when and if we can if MGS is a secured creditor, and especially if they are a secured creditor with a blanket lien. Because the demise of Tusk appears to be directly related to an action by MGS (the withdrawal of licenses), if MGS collects money ahead of players then we as players may have a cause of action against MGS. This info is probably a ways down the road before we know about it, but if any high rollers have attorneys working on this it is an angle they should be looking at.
The first paragraph looks very wrong if, as I suspect, the Oz system is based on the English one.
Secured creditors get paid out first to the extent of their security,
then the liquidators fees (based on an hourly rate and often huge),
then the entire class of preferred creditors (usually various employee claims, government debts/taxes etc) and
then, the ordinary creditors - trade and player purses (if not held in trust). Finally there are deferred creditors - those monies owed to the owners and directors of the company and those closely connected with them.
A lien would only be directly relevant to us if someone with one actually held the player funds (although if there was a creditor with a lien over another asset it would havbe security over that asset, so remove the proceeds of its liquidation from the general pool available)
Apologies if you actually are a NSW lawyer of course...