AFS Group owes $11.3 million to creditors
Collapsed dealer group AFS Group owes more than $11.3 million to its creditors and is unlikely to be able to pay a dividend to any one of them, a report shows.
The report, submitted to the Australian Securities and Investments Commission (ASIC) by liquidator BDO Australia in December last year, shows the group owes the sum to 83 creditors.
One creditor is secured and is owed $7.7 million, while 63 unsecured creditors are owed a total of $2.7 million. The remaining 19 are classed as "priority" creditors, to whom AFS Group owes almost $900,000.
However, the author of the report and BDO partner advisory, business recovery and insolvency Rachel Burdett-Baker, indicated she did not expect that a dividend would be paid to any class of creditor.
AFS Group entered voluntary administration in April last year due to financial woes caused by the outflow of aligned practices to ANZ, BT Financial Group and InFocus Wealth Management.
Further trouble erupted after it was decided that AFS advisers would not be receiving the money held in the AFS' Group Brokerage Account, which included commissions and fees generated from the advice provided.
BDO expects to finish its work on AFS in November this year.
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
