Administrators say the manganese smelter was insolvent before it was given a $20 million loan by the Tasmanian government.

In a report to creditors, EY said there had been more than $200 million in intercompany loans and dividends paid in the years before the smelter collapsed.

Administrators say the manganese smelter was insolvent before it was given a $20 million loan by the Tasmanian government.