An Australian Securities and Investments Commission (ASIC) investigation has led to the winding up of Brisbane-based Property Developers Fund (PDFL).
The Supreme Court of Queensland heard that PDFL raised capital from members of the public through offers of Cumulative and Participating Redeemable Preference Shares (CPRPS) and subsequently provided loans to various borrowers, including related entities, for property development purposes.
However, the company’s CPRPS on issue were $37,637,500 involving 405 shareholders, making it likely the investor shareholders stood to suffer a substantial shortfall on their investment.
Given this, the court ruled the appointment of a liquidator to the company represented the most appropriate course of action to protect the interests of investors.
