1. The effect of having large levels of debt, how it contributed to the collapse and recommendations of ways it could of been avoided.

2. The effect of Unlawful Dividend Payments , how it contributed to the collapse and recommendations of ways it could of been avoided.

Here is what I have so far

Deloitte liquidator David Lombe alleged had auditors from Ernst & Young, one of the big four accounting firms, reviewed proposed dividends memorandums “with reasonable care” the issue of insufficient retained earnings would have been raised earlier and possibly prevented the $160 million in losses. The violation of the company’s constitutions and the Corporations Act was never reported to management nor was it reported to the Australian Securities and Investments Commission (ASIC) (Leonie Lamont, 2011).

3. Liquidation Disbursement below is what I have at the moment for this, if you could turn it into 1 or two paragraphs that would be great.

These involve going concern risks and financial risks due no surplus to pay noteholders amounting to insolvency of BBL hence eventual winding up.

These entail efforts by BBL to settle its noteholders after litigation and restructure itself from insolvency and winding up. This may entail restructuring of its funding proposal from being limited to more funding opportunities.

· The litigation and court order to carry out liquidation by BBL through assigning costs to it pauses a difficulty to the liquidator on ascertaining value of surplus to settle note holders duet to the contingency nature of dividends resulting from period after litigation.

· Dividends to noteholders are contingent to consequences of litigation

RECOMMENDATIONS

· BBL to restructure its funding proposals to avoid risk of insolvency and financial risks.

· The company should also restructure settlement arrangements with creditors to curb going concern risks as well as financial risks.