ASIC spells end of Storm
The Australian Securities and Investments Commission (ASIC) has applied to put collapsed financial planning group Storm Financial into liquidation.
The move comes after ASIC decided that an “information memorandum” on Storm’s deed of company arrangement (DOCA), which had been published on the personal website of Storm owners Emmanuel and Julie Cassimatis, was misleading.
ASIC questions whether the DOCA, which says directors will pay the administrators $2 million which will then be paid to priority employees, is “so flawed that it could never be in the interests of creditors”.
Despite Mr and Ms Cassimatis saying they are “putting our money where our mouth is”, ASIC says not only does the DOCA leave scope for future litigation by Storm, it also releases the directors of the group from liability.
ASIC gave Mr and Ms Cassimatis until last Wednesday to comply with a number of actions or risk being wound up, according to faxes between ASIC and Storm’s lawyers.
Storm subsidiary Victorian Families Retirement Investment Group has also been placed in provisional liquidation.
The move comes after ASIC decided that an “information memorandum” on Storm’s deed of company arrangement (DOCA), which had been published on the personal website of Storm owners Emmanuel and Julie Cassimatis, was misleading.
ASIC questions whether the DOCA, which says directors will pay the administrators $2 million which will then be paid to priority employees, is “so flawed that it could never be in the interests of creditors”.
Despite Mr and Ms Cassimatis saying they are “putting our money where our mouth is”, ASIC says not only does the DOCA leave scope for future litigation by Storm, it also releases the directors of the group from liability.
ASIC gave Mr and Ms Cassimatis until last Wednesday to comply with a number of actions or risk being wound up, according to faxes between ASIC and Storm’s lawyers.
Storm subsidiary Victorian Families Retirement Investment Group has also been placed in provisional liquidation.