Fortescue Metals Group Limited
(ASX:FMG)executives will be questioned by a liquidator over allegations of trading while insolvent, according to media reports.
The allegations relate to when Fortescue's shares were impacted by the falling iron ore price last year, which it is claimed saw the miner terminate an $8 million contract with Fuel-Sys Installations.
Lawyers for FSI's liquidator have written to the Fortescue board claiming to have witnesses to a Fortescue executive saying the miner could not make payments on a fuel facility project in the Pilbara.
Media reports say FSI is alleging the comments were made when Fortescue was probably insolvent but representatives for Fortescue have denied the allegations.
Fortescue Metals generated a net profit of $460.3 million in the first half of fiscal 2013.
