A class action over Walton Construction’s collapse has dropped claims against the defunct company but will continue proceedings against the National Australia Bank. Cindy Cameronne Follow 2 min readMarch 9, 2022 - 4:23PM The Australian Business Network
Creditors who allegedly suffered losses after the collapse of Walton Construction have dropped legal claims against the business after finding there were slim chances of receiving a payout.
Shane Monks, appearing for the creditors, told Federal Court Justice Andrew Greenwood on Wednesday that liquidators found the defunct company had no funds to pay out any damages if they were to be awarded by the court.
The hearing comes after aggrieved creditors filed the class action in January, claiming NAB was involved in Walton Construction director Craig Walton’s breaches of his legal duties as director.
They claimed they had suffered over $70m in losses because of the alleged wrongdoing.
The creditors alleged in the months before Walton Construction’s collapse in 2013, NAB was involved in a corporate restructure that transferred assets, including an $18.8m debt, to companies connected with a firm known as the Mawson Group.
They also claimed NAB was involved in replacing several guarantees the bank had issued to companies that worked on construction projects with Walton Construction, causing at least $5m in losses.
Don't worry folks, it's only been dropped because of time constraints on filing, onwards and good luck with your battle with the greedy corporate giant NAB.
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