Storm Financial founders preparing to fight CBA
A media report today is pointing to possible legal action between the founders of Storm Financial and the primary funder of the failed group, the Commonwealth Bank of Australia (CBA).
An article in a major metropolitan newspaper has stated that Emmanuel and Julie Cassimatis, the founders and former joint managing directors of Storm Financial, are planning to sue CBA “for allegedly causing Storm’s collapse”.
The article states that the Cassimatis’ have informed the administrators of Storm, Ivor Worrell and Raj Khatri of Worrells Solvency and Forensic Accountants, of their plans to put forward a Deed of Company arrangement later this month.
“The DOCA proposal is likely to be complex but in essence is likely to involve related parties providing funding to pursue claims against parties alleged by the directors to have damaged the company, which damages allegedly lead to, or contributed to, its failure,” the article quotes the administrators as saying.
The article quotes a spokesperson for CBA as saying the bank has not yet seen any proposed deed of company arrangement.
Emanuel Cassimatis has repeatedly blamed CBA for the collapse of Storm Financial. Storm entered voluntary administration on January 9 this year following the withdrawal of funding from CBA. Cassimatis and CBA then publicly disagreed over how much time was provided to repay the outstanding loan amount.
The failed group is currently in debt to the tune of more than $80 million.
Money Management has contacted Worrells for confirmation of this information. This article will be updated during the day.
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