The voluntary administrators of Union Standard International Group Pty Limited (USGFX), BRI Ferrier (NSW) Pty Ltd, has released a Circular to Creditors regarding the Australian broker today, in which it states that it has real concerns as to the company’s true financial position.
In particular, the administrators said that the amount of creditor claims submitted for the first creditors meeting far surpasses what was disclosed in USGFX’s financial records.
“We are investigating these claims as a matter of priority so that the creditors’ position can be accurately reported and those parties can determine the future of the Company at the Second Meeting of Creditors,” Peter Krejci, Joint and Several Administrator, said in the circular seen by Finance Magnates.
BRI Ferrier having difficulties accessing USGFX platforms
BRI Ferrier has also outlined that it has experienced “substantial difficulties” gaining access to the trading platforms and data of the foreign exchange (forex) broker. Because of this, the administrators have not been able to determine the true financial position of the company.
“Much of these issues have resulted from the shareholder refusing to assist or comply with our reasonable requests for access. We are currently attempting to resolve these issues and obtain access urgently,” the circular from BRI Ferrier states.
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As part of the voluntary administration of USGFX, BRI Ferrier is offering the business and assets of the broker for sale publicly. According to the administrators, a number of parties have registered their interest in the business and assets, and it is now commencing a due diligence phase.
Currently, BRI Ferrier expects the sale process will exceed the ordinary voluntary administration time frame and should conclude in late August of 2020. However, the administrators point out that it is too early to determine what offers will be forthcoming or what returns can be expected.
BRI Ferrier extends convening period
The circular released today alerts Creditors of USGFX that the administrators were able to extend the convening period. As Finance Magnates reported, BRI Ferrier filed an application seeking to extend the convening period until the 18th of September 2020.
The administrators also applied for an order to allow them the ability to further extend the convening period any time before it expires. This week Justice Stewart of the Federal Court of Australia granted the orders BRI Ferrier applied for.
According to the Circular, the extension of the convening period allows clients of USGFX to close out and crystallize their claims so that they can vote at the Second Meeting of creditors, where the future of the Australian-based FX broker will be determined.
USGFX was not immediately available for comment.