Wounded Bill Express reliant on OnQ
Many expenses and supplier payments for failed payments company Bill Express were recorded in the company's books as loans to other private companies to hide the fact that it was a "mortally wounded" operation, counsel for the company's liquidators told the Supreme Court of Victoria was told yesterday.Peter Couper, the financial controller of Bill Express parent company OnQ, which is also in liquidation, confirmed under questioning from the liqidator's counsel, Peter Bick, that he had arranged for loans to be recorded in the accounts of OnQ that really represented supplier invoices for Bill Express.Bill Express was a mortally wounded child whose wounds were being hidden from the shareholders and public by its mortally wounded parent, OnQ, said Bick.Couper confirmed that he was involved with three margin facilities taken out against OnQ's major asset - its shareholding in Bill Express. The three margin lenders, Opes Prime, Tricom Holdings and Chimaera Capital, were owed around $10 million. The three financiers made 100 margin calls on OnQ before being paid out by a new debt facility from CCH in 2008.When asked what the margin money was for, Peter Couper said some funds went to the fruit business OnQ owned and the rest was used to pay Bill Express' telco suppliers."It all went into the Bill Express black hole didn't it Mr Couper? asked Bick."It was paid to telco suppliers," answered CouperCouper was also shown general ledger books for OnQ which showed large loans and payments of up to $30 million were regularly recorded on the last day of half yearly and annual reporting dates.Couper said he could no recall the payments without further information and denied that he had arranged the book entries to inflate Bill Express' assets in its accounts.