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    Liquidation of a company is one of the drastic circumstances about its financial structure and growth. A company is brought to an end by redistributing the assets and properties. It also involves the dissolution of the company pertaining to its last stage. It throws light on the inability of the company to pay its debts and liability in the form of liquid assets. In this study, it will be seen that how ABC learning systems being a renowned child care learning in Australia collapsed dramatically and gets liquidated. Optus is the second largest company in the field of telephone in Australia telephonic company providing the broadband services and HH insurance is a company operating in the sector of insurance since 33 years. This insurance agency laid stress on the home renowned and commercial loans.  All the events related to the liquidation of the company will be discussed and the financial stress pertaining to the ethical and governance terms will also be discussed.

    Events that led up to liquidation of ABC learning, HH insurance and Singtel Optus
    Australia's largest child care company, ABC learning center appears to be on the brink of collapse (Voss and Prewysz-Kwinto, 2015, p.13). It is almost certain to be placed under receivership after its failure in coming to an agreement with its bank syndicate. It owes a debt of over $1 billion to the bank. The company's increase in share by 70% this financial year marked an up liftmen in the profit. Even after this, the company's auditors were not being able to cope up with the accounts of the company. The company owes $500 billion to the Commonwealth Bank. For this reason, the turn around a plan of ABC was rejected by the bank syndicate. The company was unable to pay its debts and liabilities in the form of liquid assets (Almandoz and Tilcsik, 2016, p.100). There are many events in the form of issues that led to this downfall of ABC learning center
    Accounting issues
    ABC's acquisition's resulted in the credentials of licenses of child care operation centers and large amounts of goodwill. These two formed the intangible assets of the company. In the beginning of the financial year of 2006-20017 A$47.6 million child care licenses and A$37.4 in goodwill (governanceforstakeholders.com, 2017). The income of goodwill rose to A$271 million and that of child care to A$2.4 billion at the end of the financial year of 2007-2008. This led to a huge accounting error by the auditors of ABC learning (Costa, McShane and Pinto, 2015, p.300). The intangible assets of the company did not come as a savior during the financial crisis of the company. Due to the display of wrong information to the Australian government by both the external auditors in the name of Pitcher Partners as well as the internal auditor’s the company were in a dilemma. The formation of a large number of intangible assets led to the failure of valuation of each and every asset. This led to the collapse of the company. The SingTel Optus has accounting issues because of the changes in the reference of the customer and its demand coherends due to emerging of the new competitive company in the similar market. The HH insurance accounting issues arises as the insurance is based on the maturity of the period of insurance claimed. The insurer mostly relates its accounting by the dividend rate and the fluctuating interest rate of the financial institution.  
    Debt issues
    The total liability of ABC remained constant between June and December in the financial year of 2007. However, in December 2007, a whipping amount of A$1.1 billion was reported through reclassification from current to noncurrent liabilities. This happened due to refinancing. The lenders of ABC involved many leading banks. On June 13, 2007, a multi-optioned bank facility was opted by ABC learning amounting to A$1.48 billion (governanceforstakeholders.com, 2017). Due to the reason of one-off charges, the profit of the company fell by 42 percent and a financial breach of debt amounting to A$1.54 billion was recorded. As the company was in trouble the debts from banks and other investors dried up (Morgeson, et al., 2016, p.150). It led to the domino effect. Long-term breaching of the debts and liabilities proved to be costly for ABC learning since the value of the debts got increased. Breaching of the debt covenant became one of the major events of the liquidation of ABC. The debt in the telephonic company is required for making the networking strong and in HH insurance company for the allocating the insured rate.
    Operating cash flow issues
    ABC learning could not generate enough cash flows relating to its operational functions. It couldn't pay interests, salaries, dividends, and suppliers. Although the company showed a constant increase in the profit from the various sectors, still it had negative operating cash flows. Plantation of the share price led to the selling of 5.6 percent of company's shares in order to meet margin calls (Bauer, 2015, p.1000). The SingTel Optus in its market got flooded with shares and this plumbed the shares further. The pledged shares were being forcefully shared and this caused a huge impact on the financial growth of the company. The HH insurance got competition among the various market factors and thus the company faced the downfall in the market. It triggered breaches in the debt covenants and thus led to the downfall of the company.
    Explaining the financial stress of ABC learning, SingTel Optus and HH insurance in terms of ethics and governance
    Corporate governance has emerged as a beneficiary element pertaining to the academic discipline. It brings down contributions from the finance, accounting, management, and law. It gives a comprehensive and a disciplinary approach the management of the companies. On the other hand business ethics is the form of applied ethics. It refers to the application of ethical terms and moral terms in the business. It involves all the principles and standards that guide the behavioral part of the business. It helps in balancing the desire to make profits as well as maintaining a good relationship with the stakeholders (Djupdal and Westhead, 2015, p.150). This involves tradeoffs. It has a pretty wide coverage relating to the norms of the business and the employees. The business ethics and corporate governance go hand in hand. Due to the display of wrong information to the Australian government by both the external auditors in the name of Pitcher Partners as well as the internal auditors the company was in a dileema. The formation of a large number of intangible assets led to the failure of valuation of each and every asset (McCahery, Sautner and Starks, 2016, p.2000). The SingTel Optus is a networking organization that follows good business ethics indirectly follows the best corporate governance laws. The corporate governance is a set of rules that will come from within the company. The HH insurance involves the ethical running of a company such that all the creditors, customers, distributors and the other stakeholders are dealt in a fair manner. In order to compete for share, ABC learning gained its own internal strength pertaining to the strength of the human resource and the goodwill of its stakeholders.
    Sustainability of the Ethics and Governance framework 
    A. Initiative guidelines for global reporting
    According to Armstrong, et al., (2015, p. 15), the initiative guidelines for global reporting includes two strategies the standard guideline and the ESG metrics.
    The standard guideline is the framework that aims at enabling the members of the business to access the effect of the business unwanted function harming the environment and maintain the activities of the company. The performance of the business includes the protocol regarding the energy emission and biodiversity criteria of the environment.
    ESG metric the sustainability governance reporting aims at standardizing the quantity of the environment, either it is social and at the cost of governance and its principle. It shows the transparency of the business the working condition and the mode of payment. The social cause affected the ESG is created by the organization under GRI standard.
    b. Guidelines to the responsibility of the business toward social, economic and environment.
    Corporate responsibility- The governance of the corporation has been introduced as the academic principle by its rights, accumulating the accounting principle management and business laws. It refers to completing the responsibility related to the limitation and obligation underlined by the company towards the stakeholder. The examination of profit and its impact on the economy of the company is to be examined. This helps the company in comparing between the stakeholder and the limitation of the business regulation. The sustainability of the ethical governance is based on the economic, social and cultural responsibility of the business. The conceptual framework could be recognized if the policies led by the government. The ABC learning is unable to hold this responsibility thus the protection to the economic market was not sustained at cost. The investors of the ABC learning were declined due to the damage of environment and profit maximization is decreased (Armstrong, et al., 2015, p. 15).
    Corporate social responsibility- The activities related to charity and societies is needed to be recognized by the corporate where it is locating and working. It is correlated with the tactics of community and business. The business operating within the region is sustainable only if the local member is getting employees or it is benefiting the community. The ABC learning failed to achieve this responsibility. The company tries to the employee the professional for their benefits which ruin the community interest where the business is facilitating. This company might look at the factories for sustaining into the jurisdiction of the employed the executive.
    c. Responsibility investment principle- As per Honoré, et al., (2015, p. 524), the duty of the investor regarding the business work as the interest of long-term for the benefits of the company.  The changes in the ESG principle would help the investors in achieving the objective of the business easily and elaborately. It is the factorial role of affecting the ESG which arises the issues in the business functioning. It affects the performances of the business. The related principle affecting the investment of the business is as follows
    Principle 1- investing in accordance with the decision making and increasing the investor for the company. The ABC learning was unable to meet this principle. The SingTel Optus and HH insurance should have followed the principle for making it base strong in the the fluctuating market.
    Principle 2- The Company should manage the internal values and risk by the management itself. Where the ABC learning did not achieve the objectives of the business and the issues arising there from prevailed into the market.
    Principle 3- The entire ESG is to be focused while investing in market shares. The shares values of the company affect the income and the economic environment. The SingTel Optus, HH insurance require following the regulations prevailing in the market and attract the attention of the customer from the locality. ABC learning needs to follow up the market rate for increasing the sales and attract the investors from the locality where it is prevailing.
    Principle 4- The corporate is required to accept the principle of facilitating the business within the environment of the business. The involvement of the external factors harms the peace of the business. Thus ABC learning should cope with the aforesaid principle and recognize the factors for better use of the principle.
    Mainstreaming challenges faced by the global sustainability reporting- The sustainability report globally describe the approaches of the company and enhance the performance relating to the issues arises in the environment or governance of the business. The large business sector should permit the framework of the company for the reporting globally initiative. The preparing of the report is a difficult task widely and is not accepted by the market until it is permitted under GRI framework (Honoré, et al., 2015, p. 524),. 
    Reporting helps the business in keeping the track of the global sustainability of the business and helps in enhancing the performance by making it accountable. The process of ESG benefits the business in revealing the new strategy and emerging of the business in social and environmental factors impact on the market. The globally reporting for sustainability highlights the communication of the business and its stakeholders.
    Determination of the liability factors that has forced the process of liquidation
    The role of the banks in these sectors is vital as it helps the business in liquefying the assets. The liquidation helps the business in performing it smoothly and effectively. The important factors of the bank are to assure the value of the bank assets and its economic value. The difference economic value and the assets value of the business act as a cushion in fulfilling the gap of financing the liquidity. The banks require the assets for liquidity for covering the unwanted cash flow arises within the market in the time of recession. The regulatory environment and the other factors that are affecting the business have further been used for reviewing the same in the context of the liquidation of the company.
    The liability factors especially the debt factors of the company has been the main factor that has impacted a lot in the liquidation process. The intangible assets that could not be claimed as the liability resolving sectors, but the cap, many has utilized the same thereby leading to the downfalls of the business. The corporate exploration is performed by the liquidity of the assets, which assist the bank in financing the other business emerging in the similar market. The assets liquefaction not only helps the business financing but also the bank and other financial institution.

    This study focuses on the various key events that led to the liquidation of ABC learning. It also brings out the fact that the breach of debt covenants can be a serious issue, hindering the financial growth of the company. It clearly discusses the presence of a negative cash flow may lead to the selling of pledged shares which in turn may lead to the liquidation of the company. The inability of ABC learning to pay its debts and liabilities has put the company under a huge financial stress. This financial stress has been explained thoroughly relating to the ethics and governance of the corporate rules. The liability has turned out to be a great factor that judges the liquidity of a company. A discussion on the relevance of liability has been done. The SingTel Optus debts pressure has shown a drastic decline in the networking market and led to the downfall of the company in the operating flows of cash. The HH insurance has high grade of liabilities which has accumulated the total resources to e lower for repayment. Thus the ethics of the governance is needed to adopt by the three entwined company for better functioning in the economical market.