Daewoo creditor seeks outcome of bankruptcy probe

A creditor of Paola Motors Limited - formerly known as Daewoo (Malta) Ltd - yesterday filed two judicial letters in the First Hall of the Civil Court.

Joseph Gaffarena requested the Police Commissioner to provide him with information as to what stage the investigations into the bankruptcy of Daewoo (Malta) Ltd had reached.

Gaffarena said the investigations had been underway for over one year but to date none of the creditors had been informed of their outcome. There were a number of creditors who were unlikely to be reimbursed unless the outcome of the investigations was publicised and Gaffarena said it was therefore important that the investigations be completed and that whoever was responsible be arraigned.

Gaffarena also filed a judicial letter against the Registrar of Partnerships.

He declared that although over one year had elapsed since Paola Motors Ltd - Daewoo (Malta) Ltd - was put into liquidation, the company`s liquidators, Raphael Aloisio and Dr Andrew Chetcuti Ganado, had failed to submit their written report according to law.

The two liquidators had declared that they did not know what form their report should take. However, Gaffarena pointed out that the Companies Act did not stipulate any particular form for the report but laid down that the Registrar of Partnerships could require that a particular form was adhered to.

It was therefore obvious that the two liquidators did not, for some reason or other, wish to submit their report for the latter to be examined and studied. The creditors were entitled to this report and Gaffarena called upon the Registrar of Partnerships to investigate the case as he suspected that the liquidators were not acting in the best interest of the creditors.

The liquidators had therefore exposed themselves to the payment of a penalty in terms of the Companies` Act, Gaffarena submitted.

He said he suspected that the liquidators had not taken their decisions in the interest of all the creditors. The liquidators had decided not to investigate the actions of the persons responsible for the running of Paola Motors Ltd.

However, Gaffarena said he could not understand how the liquidators had reached their decision without attempting to establish if any fraudulent actions had taken place.

It was obvious that all the liquidators were doing was collecting the remaining assets of the company, liquidating them and passing on the proceeds to the privileged creditors without investigating the causes that had led to the company`s insolvency.

Gaffarena said he suspected the liquidators were not acting in an independent manner and he called upon the Registrar of Partnerships to take all necessary action to ensure that the liquidators performed their duties.

Dr Keith Bonnici signed the judicial letters.