The 13 year long One.Tel dispute involving James Packer and Lachlan Murdoch has finally been resolved with a $40 million settlement.
Packer’s Crown Resorts and Consolidated Press Holdings will pay a combined $26.7 million and News Corp will pay $13.3 million to special-purpose liquidator Stephen Parbery, of PPB.
The $40 million settlement is well short of the $244 million originally estimated by the liquidator in NSW Supreme court proceedings.
The settlement means Packer and Murdoch will not have to attend court to explain their actions in the company’s collapse, although the duo have previously said they were misled over the company’s financial position.
One.Tel founder Jodee Rich claimed the company had collapsed due to Packer and Murdoch withdrawing support for a capital raising.
The settlement, approved in the Supreme Court yesterday, will see creditors receiving an extra $5 million, or 1.5¢ in the dollar, bringing their total recouped to 23¢.
Packer and Murdoch together lost $1 billion they’d invested in the fledgling telecommunications company when One.Tel went under in 2001.
Read more here.