Creditors vote to wind up four BBY companies
CREDITORS of failed stockbroking firm BBY have voted unanimously to liquidate four companies within the group.
At a creditors meeting yesterday, the creditors agreed to wind up parent company BBY Holdings, the main trading company BBY Ltd, an employment company Broker Services Australia and BBY Advisory Services.
The creditors also voted unanimously for a deed of company arrangement in relation to AIMS Financial Group’s planned takeover of BBY’s Smartrader and Hometrader operations.
The administrators plan to call a second meeting of creditors for four other divisions in the BBY group.
BBY controlled more than $2 billion in assets, but was placed into administration in May.
administrators KPMG listed a litany of factors contributing to BBY’s collapse, including:
INDICATIONS of possible use of client trust funds for unauthorised purposes.
POSSIBLE failure to maintain financial records according to the Companies Act.
“There are a number of director and related party transactions that require further investigation,” the administrators said.
The administrators last week said the shortfall in BBY former client accounts could be as high as $16 million.
Yesterday they said 180 BBY employees were owed $2.7 million.
Among secured creditors, St George Bank was owed $13 million while about 150 unsecured creditors were due $8 million.
“There are currently no funds available for distribution to unsecured creditors,” the administrators said.
KPMG said it would seek directions on further actions from the courts in the next few weeks.
It said that the timetable for further action could not be estimated, but it was likely to take several months.
The corporate watchdog, the Australian Securities and Investments Commission, is investigating the collapse.