The Charterbridge Davey dealer group has been sold off to Royal and Sun Alliance after collapsing into voluntary administration under the weight of multi-million dollar claims from creditors and a question mark over its ability to meet day-to-day commitments.
Royal and Sun Alliance, which already owned 30 per cent of Charterbridge Davey, finalised its purchase of the group earlier this week after Charterbridge Davey fell into voluntary administration late last month with what is believed will be claims from creditors in excess of $2.5 million.
The group’s administrator obtained an order from the Supreme Court of New South Wales last week to allow the sale to proceed without having to remarket the business after a committee of Charterbridge Davey’s major creditors, including the Australian Taxation Office (ATO) and Royal and Sun Alliance itself, agreed to the purchase price.
The sale, which was already well under way before the group fell into administration, is believed to have been rushed through by the administrator following discussions with creditors and the Australian Securities and Investments Commission (ASIC), both of whom agreed it would be a positive outcome for Charterbridge Davey employees and clients.
The assets of the group’s clients are understood to be in the hands of external funds managers and effectively under the control of Charterbridge Davey subsidiaries Tasman Asset Management and Davey Accountants, both of which have also been purchased by Royal and Sun Alliance but had not been placed under administration.
Charterbridge Davey managing director Venn Williams did not return calls to comment in regard to this article, but last week he toldMoney Managementthe group was only in the process of a restructure.
Royal and Sun Alliance, which will rename the group Quantum PB, is expected to employ the planning group with its 600 clients and $100 million under management as part of a wider strategy to boost its distribution network, but is planning to ultimately sell its stake in the business back to employees of Charterbridge Davey.
The trouble for Charterbridge Davey comes just two and a half years after the group, which specialises in advice to niche high net worth individuals such as lawyers, doctors and dentists, was formed with the merger of the Davey and Charterbridge planning groups.
The appointed administrator, Anthony Milton Sims, is expected to complete his investigation into Charterbridge Davey’s finances over the next few weeks, with a detailed report to the group’s creditors due in December.
