In filings in U. S. Bankruptcy Court for the Northern District of Georgia, the committee of unsecured creditors has accused O'Sullivan Industries officials of hiding assets in Australia and England and doing their best to squeeze out any creditors other than the small handful that are secured, primarily the Bank of New York. The documents indicate the committee believes the assets are not part of those that are pledged to secured noteholders.
The committee says O'Sullivan has "four wholly-owned subsidiaries that are located in Australia," and that those subsidiaries "are not debtors in the bankruptcy cases and have not filed any insolvency proceedings in Australia." The stock in those subsidiaries is not pledged to the secured noteholders, the committee claims.
The same claim is registered for O'Sullivan assets in the United Kingdom. "No documents were filed in jurisdictions outside of the United States" which would give the senior noteholder interest in those assets, the committee said.
The committee also questions the secured noteholders' connection to O'Sullivan's Canadian interests.