The Advertiser

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.

Yesterday,

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.

Newspapers in English

Newspapers from Australia