SolNet Holdings cannot pay debt to liquidated daughter company

SolNet Holdings, now renamed SRL Holdings, could follow S Resources (formerly SolNet Ltd) into liquidation.

SolNet Holdings, now renamed SRL Holdings, could follow S Resources (formerly SolNet Ltd) into liquidation.

The first report of liquidators Richard Simpson and Ronald Walton discloses a debt of $16,589,866, owed by the holding company to S Resources. This forms the bulk of S. Resources’ “assets”.

“We have been informed by management that it is unlikely that the debt due from SolNet Holdings will be recovered," says the liquidator's report.

SolNet Holdings director Murray McNae says the $16m is “just ordinary inter-company debt”. It is unlikely to be recovered, he says, “because SolNet Holdings has debts to other parties”.

Asked whether the holding company is solvent, McNae says “that will come out in the fullness of time”. He refuses further comment.

The court hearing a week ago, before Master Gendall, was intended chiefly for the purpose of appointing a liquidator, but S Resources directors had already put the company into liquidation, appointing Simpson and Walton, so the action was adjourned. It is scheduled to come up in court again next Monday, when creditors, including Sun Microsystems, which sought the winding up order, may challenge the appointment of the liquidator.

This could, however, happen as early as tomorrow, when the first meeting of creditors is scheduled.

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