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December 20, 2007 |
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FINCORP GROUP: Founder Asserts AU$3 Million Claim Fincorp Group's dispute with its founder and owner Eric Krecichwost over the return of up to AU$3 million in loans is still ongoing, Danny John of The Sydney Morning Herald reports. The Herald relates that Fincorp's former Chairman, Peter Pengilley, disclosed during a liquidator's examination hearing at the New South Wales Supreme Court that he was given the task of getting back the money from Mr. Krecichwost, after former Chief Executive Officer Craig Stubbs presented to him a shareholder loan report some time in August and September last year. Mr. Pengilley, the report notes, disclosed during the hearing that Mr. Stubbs' report detailed various Fincorp credits and debits covering loans made to and by Mr. Krecichwost but that the conclusion was that he actually owed the group money. Mr. Krecichwost, Fincorp's sole shareholder, did not respond to Mr. Pengilley's telephone calls even though he was given 90 days to pay up or face legal action, the Herald relates. Mr. Pengilley related that just five weeks before Fincorp collapsed, he had a "robust discussion" with Mr. Krecichwost regarding pursuing the money, but Mr. Krecichwost continued to argue that he was owed AU$3 million by Fincorp -- a claim which appeared to be substantiated by the company's 2005 accounts, the newspaper reported. About Fincorp Fincorp Group -- http://www.fincorp.com.au/ -- in its current structure was established in July 2005. The company is a boutique funds management and property development business that focuses on mortgage-backed and property products. It is based in Grosvenor Place, Sydney, with around 40 employees across New South Wales, Victoria, and Queensland. Two companies with the Fincorp Group (Fincorp Financial Services Limited and Fincorp Managed Investments Limited) hold Australian Financial Services Licenses and act as Responsible Entities under the Corporations Act 2001. Fincorp and its Funds are regulated by the Australian Securities and Investment Commission. * * * On March 27, 2007, the Troubled Company Reporter-Asia Pacific reported that Fincorp Group went into administration with AU$290 million in debt, of which AU$200 million were owed to investors and AU$90 million to external financiers. David Winterbottom was appointed as administrator together with Mark Korda and Lachlan McIntosh, partners at corporate recovery firm KordaMentha. Fincorp Group has reportedly been struggling under heavy inter- company debt loads and negative cashflow, the TCR-AP cited a report from The Australian, published on March 26, 2007. |
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