Wednesday 9 May 2007 LAWFUEL – The Law Newswire – The Supreme Court…

Wednesday 9 May 2007 LAWFUEL – The Law Newswire – The Supreme Court of Queensland yesterday ordered the winding up of a Brisbane-based company on just and equitable grounds following an application by the Australian Securities and Investments Commission (ASIC). These orders appointed Messrs Jamie Harris and John Cronin of McGrath Nicol as liquidators of Property Developers Fund Ltd (PDFL). ASIC’s application was supported by the company’s directors and investors and followed the appointment of voluntary administrators in November 2006.

The Court heard that PDFL raised capital from members of the public through offers of Cumulative and Participating Redeemable Preference Shares (CPRPS) and subsequently provided loans to various borrowers, including related entities, for property development purposes. ASIC’s application for the winding up of the company followed a Court ruling in March 2007 that the investors were shareholders, rather than creditors, which made continuation of the voluntary administration inappropriate. At the winding up hearing, the Court was informed that the value of the company’s CPRPS on issue was $37,637,500 involving 405 shareholders, and that it was likely that the investor shareholders stood to suffer a substantial shortfall on their investment.

Given this, the appointment of a liquidator to the company represented the most appropriate course of action to protect the interests of investors. ‘ASIC assisted with the appointment of a liquidator when it became clear that this was the best course of action for investors’, said ASIC’s Deputy Executive Director of Enforcement, Mr Allen Turton. For further information contact: Allen Turton Deputy Executive Director, Enforcement Telephone: 02 9911 2338 Mobile: 0411 549 236 Emma Forehan ASIC Media Unit Telephone: 03 9280 3354 Mobile: 0409 702 310

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