ASIC moves in on Harts
TheAustralian Securities and Investments Commission(ASIC) has sought the appointment of a provisional liquidator to listed financial services groupHarts Australasia, after receiving approval to do so from the Federal Court of Australia.
The corporate watchdog filed to commence the proceedings against the Brisbane-based group in the court, to ensure there was an independent consideration of the best interests of investors and creditors.
It is understood that last week ASIC was investigating Harts and office holders, including founder and executive chairman Steve Hart after theNational Australia Bank(NAB) placed one of Hart's private companies and Harts' major shareholder, Steve Hart Family Holdings Pty Ltd, under administration earlier this month.
The company, which owns about 41 per cent of Harts, was released last week after meeting demands for a payment of $350,000.
The tussle with NAB is only the latest in a string of battles the company has fought, including several applications from creditors to have the company wound up.
Earlier this month the group reported a massive $92.7 million net loss after writing $62.9 million off the value of its investments and posting an operating loss of $17.5 million.
The company allocated a further $10.5 million for bad debts provisions and write-offs at June 30, 2001. The company's prospectus has forecast a net profit of $12 million.
The major creditors included accountants who has sold their firms to Harts over the last year.
Also last month ASIC revoked the dealer's licence of Harts fund management subsidiary, Cardinal Financial Securities, although Harts is appealing.
Harts shares were suspended today by the Australian Stock Exchange (ASX) in reaction to ASIC's move. The shares last traded at four cents.
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