The West

Forge shareholders to get nothing

Liquidators for the collapsed Forge Group have confirmed ordinary shareholders' worst fears that they stand to receive nothing from the sale of the company's assets.

Ferrier Hodgson today confirmed that there was no likelihood that holders of ordinary shares would receive a distribution, meaning the scrip they hold is worthless.

Shareholders can elect to declare a capital loss for the year, equal to the reduce cost base of the shares however the option is not available to shares acquired under an employee share scheme.

Forge called in administrators on February 11 after financial backer ANZ Bank withdrew its support. It has debts of about $800 million.

More than 1500 employees were thrown out of work with unpaid wages and entitlements.

Investors first officially learned of big blowouts and delays on Forge projects last November.

The company was placed in liquidation last week.

Last month, aggrieved shareholders of the collapsed contractor were invited to be part of a class action against the company, its former directors and management.

Bentham IMF said it would fund the claim with Slater & Gordon running the action.

The West Australian

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