Harts Australasiahas lost its court battle with theAustralian Securities and Investments Commission(ASIC), with the listed financial services group being forced into administration.
Yesterday, in Queensland’s Federal Court, Harts were told that ASIC’s bid to appoint an administrator had been granted.
The board of directors of Harts Australasia resolved today to appoint John Rees, David Cassidy and Michael McCann of Grant Thornton as voluntary administrators of Harts Australasia and its subsidiaries.
Executive Chairman, Steve Hart released a statement to the Australian Stock Exchange notifying it of the action.
In the statement Hart stated, “it was necessary to appoint a voluntary administrator to the company as it had been advised that certain finance facilities available to the company had been withdrawn due to the publicity, surrounding the Australian Securities and Investment Commission’s application to the Federal Court.”
The group had planned to fund the ongoing operations of the group through the disposal of the Harts New Zealand financial planning operation and the property division of Harts Australasia. It was also due to finalise a loan facility at the time the original ASIC action took place late last week.
At the time Harts New Zealand executive general manager John O’Sullivan said business was continuing and it was not expected the court action would impact the sale of the New Zealand group.
O’Sullivan says a numnber of organisations were bidding and any the appointment of an administrator would buyers would deal with them instead of the company.
