All eyes on Energy Watch Mark II

Private investors injected millions of dollars into a new business called Energy Watch International after an investor emerged with the bulk of the assets. The move left the old broking business with existing financial and legal problems in the hands of administrators.

IT entrepreneur Danny Wallis emerged as the head of a private consortium that took over the company and rebranded it as Energy Watch International.

The restructure risks attempts to recoup superannuation and redundancy payments from the old company. The new owners say staff are more likely to receive money than if the company had been left to fail, but they cannot guarantee former employees will get all their entitlements.

The Australian Competition and Consumer Commission (ACCC) recently won a case against Energy Watch and former chief executive Ben Polis for false and misleading advertising. Because assets moved to the new business, the ACCC now needs the court's permission to pursue penalties.

ACCC counsel Daniel Star told the court the watchdog does not yet know whether the new company is '100 per cent bona fide' or a tactic to avoid penalties. The matter requires further legal consideration and court permission for penalties to proceed.

Yes. The article says Energy Watch had been stumbling towards liquidation after offensive comments by former CEO Ben Polis were made public in early April.

Danny Wallis said private investors put 'millions of dollars' into the structure and that a large percentage of that money is going to the administrators to pay out staff claims. He also said he could not guarantee staff would receive all their entitlements.

Administrators Lawler Draper Dillon did not return calls, and a creditors' meeting was scheduled to be held on Tuesday to address outstanding matters.