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.
