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Keith Hardy · 03-23-06, 06:03 AM

[ QUOTE ]
That is really bad news for all the people who paid deposits
and will now be very lucky if they recover any of it. [img]/ubbthreads/images/graemlins/censored.gif[/img].

Ron, it is my experience when firms in OZ go bust the major creditors (tax office, and banks) get the lions share of any assets and suppliers and people who have paid deposits
get what is left. Normaly nothing.
Sorry to be a pessimist but that is the way of things.

[/ QUOTE ]

In other words, in these situations unsecured creditors are usually f*****d over. [img]/ubbthreads/images/graemlins/mad.gif[/img]

It does beg the question for the future though...would you normally send large sums of money, unsecured, overseas for the purchase of "luxury" goods, or does an internet based trust relationship with the receiver of such funds, built up over time, dull (lull) the senses? I must admit, I would probably have too, but with 20/20 hindsight, it's not a very good idea when viewed objectively. [img]/ubbthreads/images/graemlins/nono.gif[/img]

Having said that, even if it happened in your own country, the same result would have probably applied although due process would be cheaper. Such large deposits for work in progress require legal status such as escrow, but that still may not have helped some customers, as the deposit would still be "unsecured". For the benefit of future transactions, could such a large deposit be considered a commercial "loan" and charged against the business? After all, you are not paying for work yet done, merely to fund future build and materials, so therefore it is technically a loan. At least then you would be a secured creditor and have some chance at money back or goods in kind if the sh1t hit the proverbial.[img]/ubbthreads/images/graemlins/twocents.gif[/img]

03-23-06, 06:03 AM	#6 (permalink)
Keith Hardy Keith1 10 tenths Join Date: Mar 2004 Location: United Kingdom GT40: Uh uh Posts: 1,888 Rep Power: 25	Re: RF Update [ QUOTE ] That is really bad news for all the people who paid deposits and will now be very lucky if they recover any of it. [img]/ubbthreads/images/graemlins/censored.gif[/img]. Ron, it is my experience when firms in OZ go bust the major creditors (tax office, and banks) get the lions share of any assets and suppliers and people who have paid deposits get what is left. Normaly nothing. Sorry to be a pessimist but that is the way of things. [/ QUOTE ] In other words, in these situations unsecured creditors are usually f*****d over. [img]/ubbthreads/images/graemlins/mad.gif[/img] It does beg the question for the future though...would you normally send large sums of money, unsecured, overseas for the purchase of "luxury" goods, or does an internet based trust relationship with the receiver of such funds, built up over time, dull (lull) the senses? I must admit, I would probably have too, but with 20/20 hindsight, it's not a very good idea when viewed objectively. [img]/ubbthreads/images/graemlins/nono.gif[/img] Having said that, even if it happened in your own country, the same result would have probably applied although due process would be cheaper. Such large deposits for work in progress require legal status such as escrow, but that still may not have helped some customers, as the deposit would still be "unsecured". For the benefit of future transactions, could such a large deposit be considered a commercial "loan" and charged against the business? After all, you are not paying for work yet done, merely to fund future build and materials, so therefore it is technically a loan. At least then you would be a secured creditor and have some chance at money back or goods in kind if the sh1t hit the proverbial.[img]/ubbthreads/images/graemlins/twocents.gif[/img]