Reports Storm Financial administrators are recommending liquidating failed group
Various media reports this morning are suggesting the administrators of Storm Financial have concluded that the group should be placed in liquidation rather than approving the Deed of Company Arrangement (DOCA) proposed by the group’s founders.
Media reports say the report issued by administrators Ivor Worrell and Raj Khatri of Worrells Forensic and Solvency Accountants to the creditors of Storm yesterday recommended creditors vote to place the group in liquidation.
It is being reported this morning that the investigations conducted by the administrators “strongly suggest the company was insolvent on December 1 when an $11.2 million income tax liability was due, but not paid”.
Reports state that the administrators are at this time “not in a position to state the present financial condition of the company or estimate a return for creditors”.
If successful, the DOCA will provide Storm Financial founders Julie and Emmanuel Cassimatis with the power to take legal action against the Commonwealth Bank of Australia for what they believe was action that caused the demise of the company, and the resultant financial crises faced by their clients.
Recommended for you
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
