Elderslie Finance faces receivership
Wednesday, July 2, 2008/
The troubled $200 million Elderslie Finance moved a step closer to receivership today after trustee company Perpetual obtained an order from the Federal Court this morning that it could enforce their security. This now gives Perpetual the option to appoin
The troubled $200 million Elderslie Finance moved a step closer to receivership today after trustee company Perpetual obtained an order from the Federal Court this morning that it could enforce their security. This now gives Perpetual the option to appoint a receiver over Elderslie Finance.
Adelaide Bank has already appointed two receivers to some of the assets of the group. It is expected that Perpetual will appoint receivers later today. A source says: “It is unlikely Perpetual would chase the order unless they intended to do something about it.”
The order will come as a blow to former chairman of Elderslie, John Hewson, who according to reports was working on a last ditch rescue package for the troubled group that would involve an immediate equity injection.
Hewson resigned as chairman on 3 June, two days before Perpetual launched action against Elderlsie. Yesterday Elderslie requested a further week’s adjournment to organise a separate bid to inject $15 million into the company – of which $12.6 million would be used to pay creditors other than the debenture holders. The request was rejected.
Another rescue package from former realestate.com.au chief executive Nigel Purves fell through yesterday after he requested more time to do due diligence.
In May, Perpetual appointed investigative accountants from PricewaterhouseCoopers, who found that Elderslie “was or would become insolvent unless the company was sold and received a significant cash injection to meet its short term liquidity requirements”.
Read more on Elderslie
Elderslie now in receivership. See story.
Be honest about your situation: How vulnerability helps businesses thrive Sue Parker DARE Group founder
Own it: The 10 things you need to do to manage your personal brand Lisa Stephenson Who Am I Projects founder
Six invaluable lessons: What 20 years in aged care taught me about being an entrepreneur Natasha Chadwick NewDirection Care founder
An entrepreneurial superpower: Eight tips to help develop resilience Adala Bolto ZADI Training co-founder
Going through a lull? Five areas you should invest in when sales drop Tamara Alaveras and Sonia Majkic 3 Phase Marketing co-founders
Stop telling us how busy you are, it's boring and charmless Ian Whitworth Scene Change co-founder
Blandification™ and the state of modern branding Jeffrey Oley The Offices co-founder
Why you should find the right role for the right person — not the other way around Bruce Stronge Outfit founder