Troubled rural and regional telco Maxis Corporation has avoided being wound up at the behest of the Australian Securities and Investments Commission by promising a number of undertakings to the commission. The undertakings were agreed to by the company's sole remaining director Sepan Stepanian -- National Party identities Charles Blunt and Tim Fischer were directors of the company until they both tendered their resignations shortly after Christmas, and early in February chairman Jim Landau and CEO Ilario Faenza also resigned.
The undertakings agreed to by Stepanian, and accepted by the Supreme Court of NSW, included: restrictions on dealings with corporate assets; a prohibition on cash expenditure, except in the normal course of business; the need to report all payments weekly to ASIC; and a prohibition on raising funds from the public while the company's shares are suspended by the ASX.
"These court undertakings effectively secure the interests of investors and creditors pending a full hearing by the court to determine the company's future," explained David Knott, chairman of ASIC.
"As that was the purpose of our application for the appointment of a receiver, we were willing to consent to the matter being resolved in this manner."
Maxis and ASIC are scheduled to meet in court again on March 5.