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Bring it on, Packer tells liquidator

BILLIONAIRE James Packer has challenged the One.Tel liquidator to immediately serve legal action over the cancelled $132 million rights issue.

Mr Packer maintains he was “profoundly misled” over the financial position of the telco before its spectacular collapse in May 2001, The Australian reports.

In a statement late today from his Consolidated Press Holdings Limited, Mr Packer called on One.Tel’s Special Purpose Liquidator, Paul Weston, and former co-managing director of One.Tel, Jodee Rich, “to immediately serve the writs they have issued in the Supreme Court of NSW”.

“(Mr Weston) and Rich are refusing to serve and commence those cases,” the statement says. “Prompt action is essential to seek to ensure the integrity of evidence which will become a central feature of these proceedings.”

“CPH believes that the Supreme Court should immediately order that all documents be preserved for the SPL and Rich proceedings. CPH looks forward to arguing these cases, and to demonstrating in court the true financial position of OneTel.”

Media heirs forgetful in witness box

Mr Packer’s challenge comes after ASIC lost its case against two One.Tel executives yesterday.

During the long-running case the conduct of some of the biggest names in the Australian media and business landscape was put under the microscope.

Media companies PBL (now PBL Media) and News Corporation, publisher of The Australian, were major investors in One.Tel, and media heirs Mr Packer and Lachlan Murdoch, both non-executive directors of the company, appeared in the witness box.

Judge Robert Austin said of Mr Packer that he appeared to misunderstand the purpose of cross-examination, and treated it as an opportunity to attempt to ‘put his side of the story’ by argumentative, and non-responsive answers, and even occasionally evasive answers, The Australian reports.

And that was coupled with an inability to recollect important matters, raising a question about the reliability of his evidence on the matters that he did claim to recollect, Justice Austin said.

But I do not accept the defendants’ submissions to the effect that Mr Packer Jnr deliberately sought to implement an `agenda’ or `strategy’ in his evidence . . . or had an `unholy alliance’ with ASIC.

Mr Packer also gave occasionally aggressive and even angry answers, the judge noted.

Mr Murdoch recalled very little of the One.Tel board meetings. My view is simply that Mr Murdoch Jr’s evidence should be treated with caution because of his poor recollection, the judge said. It was also noted that Mr Murdoch answered I can’t recall or similar words, in response to 881 questions, a higher daily rate than Mr Packer Jr.

Other PBL executives were also called to give evidence.

The court even flew to Britain to hear evidence from One.Tel’s European operatives.

One.Tel founders Jodee Rich and former finance director Mark Silbermann, gave evidence.

ASIC argued in the case that Mr Rich and Mr Silbermann had been severely damaged by their evidence and that they were prepared to say whatever they perceived would advance their case, regardless of the truthfulness and frankness of what they were saying.

But Justice Austin said Mr Rich was very well prepared and knowledgeable and answered questions thoughtfully and clearly.

It was obvious to any observer of the proceedings that Mr Rich applied himself to his defence with enormous industry and determination. He was present on almost every hearing day of the long trial, assiduously taking notes on a laptop computer, Justice Austin said.

It goes without saying that he was an interested witness — indeed, he was fighting for his commercial survival.

Of Mr Silbermann, Justice Austin said he was not as impressive a witness as Mr Rich.

There are some inconsistencies and mistakes and evident lapses of memory in his evidence. . . . But I have not formed an adverse view as to his credit.

ASIC was also criticised for calling as its expert witness Paul Carter, an accountant from PricewaterhouseCoopers.

Others to give evidence included PBL lawyer Guy Jalland and former One.Tel director Peter Yates.

Read more about One.Tel in The Australian.

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This entry was posted on Tuesday, November 17th, 2009 and is filed under Business News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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