The Federal Circuit Court in Sydney dismissed a petition by financier Moneytech to bankrupt the former director of collapsed Telstra distributor ICT 123 after the director, Ben O'Leary, bankrupted himself first.
The case, which was heard last week in Sydney, saw Moneytech chasing O'Leary after the lender was left out of pocket by the distributor's collapse last year.
A court spokesperson told CRN that "the respondent [O'Leary] presented his own petition for bankruptcy to the Australian Financial Security Authority (AFSA) and he was made bankrupt by AFSA on that petition. Accordingly, the Petition in the FCC was dismissed, with costs to come out of the bankrupt estate."
The Federal Circuit Court ordered that ICT 123's estate pay out Moneytech's $5,965 costs. O'Leary did not respond to CRN.
It is not the first time Moneytech sought a return from the failed Telstra distributor: in February it filed a winding-up order against the holding company behind ICT 123.
At that time, Moneytech boss Hugh Evans told CRN he wasn't particularly hopeful of a return. When asked if he expected the holding company would have any assets, he said: "Not that we know of, but it is our policy to pursue all avenues until we know there is no chance of being paid."
ICT 123 went into administration in May 2014 , with more than 90 dealers exposed by the collapse, owing nearly $2 millon to unsecured creditors, with debts ranging from $30 to more than $20,000.
At the time, O'Leary blamed the collapse on "fraudulent actions by one Queensland-based dealer".
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