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Australian Securities & Investments Commission (ASIC)
MEDIA RELEASE
Monday 5 November 2007 07-285
LAWFUEL – The NZ Legal Jobs & Law Service – The Australian Securities and Investments Commission (ASIC) has moved to wind-up a Brisbane-based company associated with two failed property developers on grounds of insolvency and on just and equitable grounds.
ASIC filed an application in the Supreme Court of Queensland on 1 November 2007 seeking the winding up of Neovest Ltd, a company linked to failed property development companies, Neo Lido Pty Ltd and Neolido Holdings Pty Ltd.
Neovest raised capital from the public between February 2004 and March 2005 to lend to the Neo Lido Group of Companies (including Neo Lido and Neolido Holdings) for the purchase and development of property located in various Brisbane suburbs, including New Farm, Newstead, Highgate Hill, Indooroopilly, Wakerley and Everton Hills. As at 30 December 2005, Neovest had raised over $13 million from about 250 investors through the issue of redeemable preference shares. The majority of these funds were loaned to Neo Lido and Neolido Holdings. The matter will be heard on Wednesday 21 November 2007.
Background
In November 2005, the Supreme Court of Queensland ordered the winding up of Neo Lido and Neolido Holdings following an ASIC application to wind up the companies on grounds of insolvency. According to an account lodged with ASIC by the liquidator of Neo Lido on 24 May 2007, the company had liabilities of more than $38 million. Dividends were not expected to be paid to any class of creditor.
An account lodged with ASIC by the liquidator of Neolido Holdings indicated the company had liabilities of more than $29 million as at 24 May 2007. Dividends were not expected to be
paid to any class of creditor.
