Stockford principals opt for buy back
MORE than one third ofStockfordprincipals have agreed to buy their businesses back from the group’s administrator, after the troubled accounting and financial planning consolidator fell into voluntary administration last month.
A spokesperson for the administrators, KordaMentha, says up to 30 of the group’s 84 practice principals have reached in principle agreements to buy back their businesses.
The spokesperson says negotiations with the remaining principals were ongoing and a key priority for the administrator.
According to the spokesperson, Stockford was likely to be able to pay out its debt in full to all secured creditors.
The major secured creditor is understood to be the Westpac Bank.
The spokesperson says Stockford employees were also likely to receive all their entitlements from the group, although this would depend on the outcome of negotiations with principals who have not yet agreed to buy back their practices.
Stockford slumped into voluntary administration after a last ditch attempt to sell off its financial planning businesses to rival dealership Investor Group collapsed because of a lack of support from practice principals.
The group listed on the stock exchange in November 2000 after accounting and planning firms sold their businesses to the group in exchange for shares.
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