Harts to battle ASIC in court
Financial services groupHarts Australasiahas said it will strenuously defend yesterday’s proposal to appoint a provisional liquidator to wind up the group by theAustralian Securities and Investments Commission(ASIC) when it comes before the courts next week.
Harts executive chairman, Steve Hart says ASIC's claims are based on what he believes are incorrect or incomplete information. In a company statement, Hart says when the group fronts court next week he is confident he will squash the latest blow to the group and be able to again focus on its growth strategies.
It is understood that Hart’s main concern about ASIC’s decision to bring in a provisional liquidator is that it will halt a number of transactions relevant to the group’s non-core asset sale program.
Hart says the sale of New Zealand assets, the disposal of the troubled property division and the finalisation of a loan facility were all to be signed or completed this week. But with ASIC stepping in, all deals will be delayed.
Hart also denied recent media comments that many Harts employees have not been paid for some months. Instead he pointed the finger elsewhere stating, he “firmly believed there is a determined attempt to undermine this company and I will not allow that to happen”.
Hart’s woes began earlier this month when the group reported a massive $92.7 million net loss after writing $62.9 million off the value of its investments and posting an operating loss of $17.5 million.
The company allocated a further $10.5 million for bad debts provisions and write-offs at June 30, 2001. The company's prospectus has forecast a net profit of $12 million.
The major creditors included accountants who had sold their firms to Harts over the last year.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
