Harts: Court calls in liquidators
The Federal Court of Australia has appointed a provisional liquidator to listed financial services groupHarts Australasiaone day after the group placed itself into voluntary administration.
The court has appointed John Greig and Robert Duff of Brisbane-basedDeloitte Touche Tomatsuas provisional liquidators to the company and 35 of its 36 subsidiaries. Greig and Duff are to report to the court within 21 days. The court has not made any orders in regards to the groups remaining subsidiary Sunraysia Syndicate.
It is understood that the appointment of a provisional liquidator means Hart’s appointment of a voluntary administrator has been withdrawn.
The move by the Federal Court to appoint a provisional liquidator follows a previous application by theAustralian Securities and Investments Commission(ASIC). The regulator filed to commence proceedings for the appointment of a provisional liquidator on Monday 24 September 2001, resulting in the Australian Stock Exchange suspending trading in Harts shares the same day. ASIC’s application for winding up Harts has been adjourned to later this month.
Yesterday Harts executive chairman Steve Hart stated the board had decided to appoint John Rees, David Cassidy and Michael McCann as voluntary administrators of the group.
Hart said it was necessary to appoint a voluntary administrator as the company had been advised certain finance facilities had been withdrawn because of publicity surrounding an application by ASIC to the Federal Court.
Harts has had a string of problems and legal battles since it listed in May last year after a $30 million float.
Last 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.
AUTHOR
Kate Kachor
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