...as promoter gasps for air
A promoter of multiple agricultural investment schemes, Monpro, has been placed into voluntary administration.
A promoter of multiple agricultural investment schemes, Monpro, has been placed into voluntary administration.
In a letter to planners, the company claims the tax office challenge against Budplan, the conversion to the Managed Investment Act and the delays in obtaining product rulings were the causes of the company’s difficulties.
“As a result the current shareholders can no longer continue to inject capital into the company to support it,” the letter says.
According to the creditors’ report, prepared by the administrator David Diamond, the company has debts of $1.3 million with estimated realisable assets of $354,245.
Of the $1.3 million of debts, only $156,834 is expected to be realised, with perhaps some additional sums from the auction of the office furniture later this month.
Major debtors include the tax office ($291,462), Personal Financial Planners ($151,340) and Saxby Bridge ($217,249).
In his report, David Diamond says the reasons why the company has failed are “unprofitable trading activities over the last two years and the consequential irrecoverable nature of inter-company debtors”.
The inter-company debtors included Monpro Investments ($311,605 owed), Monpro Research Corporation ($604,674 and Sunleaf Holdings ($210,000).
“As the group has no cash resources to pay ongoing expenses it seems likely that all group companies involved may fold,” the report says.
“Monpro is, in this environment, obviously insolvent and for that reason an administrator was appointed.”
In its letter to planners, Monpro said it planned to find a new equity partner for the company and it will be downsizing to reduce overheads. However, according to the creditors’ report, none of these new equity partners have been willing to put more money in Monpro due to the large debts and the loss of its dealer’s licence.
Ends
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
