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Screenshot of a breaking news alert e-mail from Q2 2017
Justice McKerracher of the Federal Court of Australia has lifted an earlier stay on the appointment of David Hodgson and Andrew Hewitt, of Grant Thornton, as provisional liquidators to ASX-listed Diploma Group Limited (Receivers and Managers Appointed) (Administrators Appointed) and its subsidiaries following an application by ASIC, the Australian regulator announced earlier today.
The subsidiaries are:
- Diploma Construction (WA) Pty Ltd (Receivers and Managers Appointed) (Administrators Appointed);
- DGX Construction Pty Ltd (Receivers and Managers Appointed) (Administrators Appointed);
- Diploma Properties Pty Ltd;
- Diploma TCO Holdings Pty Ltd;
- Diploma Construction (NSW) Pty Ltd;
- Diploma Capital Pty Ltd;
- Allegro Realty Holdings Pty Ltd;
- Diploma Development Management Pty Ltd;
- Weststructure Pty Ltd;
- 24 Flinders Lane Pty Ltd;
- 176 Adelaide Tce Pty Ltd;
- Rockingham Serviced Apartments Pty Ltd;
- Chemlabs Emporium Pty Ltd;
- Allegro Realty Pty Ltd;
- 300 Lord St Pty Ltd;
- 303 Campbell St Pty Ltd;
- 254 West Coast Hwy Pty Ltd;
- Subiaco Residential Apartments Pty Ltd; and
- Diploma Capital Securities Pty Ltd
(collectively, the Diploma Group).
The provisional liquidation commenced on 22 May 2017, with the provisional liquidators required to provide a detailed report to the Court within 45 days that sets out, among other things, the financial position of the Diploma Group.
The matter is next before the Court on 26 July 2017.
ASIC made the application in relation to the Diploma Group to protect the interests of shareholders, investors and creditors.
ASIC’s investigation into the Diploma Group is ongoing.
Creditors of the twenty companies affected should contact the Provisional Liquidators if they have questions about their rights.
Diploma Group Limited was a Perth-based commercial construction and property development company.
On 21 December 2016 a secured creditor appointed Martin Jones and Andrew Smith of Ferrier Hodgson as receivers and managers of Diploma Group Limited, Diploma Construction (WA) Pty Ltd and DGX Construction Pty Ltd.
Following this, on 22 December, the directors of Diploma Group Limited, Diploma Construction (WA) Pty Ltd and DGX Construction Pty Ltd appointed Matthew Donnelly, Mr Hewitt and Mr Hodgson of Grant Thornton as voluntary administrators (Administrators) to those three companies. Mr Donnelly later ceased.
The Administrators held the first creditors meeting on 6 January 2017.
The second creditors meeting held on 8 May 2017 was adjourned for up to 45 days to allow the Administrators to consider further information that came to light after ASIC commenced proceedings against the Diploma Group.
The appointment of the Provisional Liquidators brings the previous administrations of three companies to an end. Creditors of the twenty companies affected should contact the Provisional Liquidators if they have questions about their rights.
ASIC earlier discontinued its application against one further company, Lot 101 Hay St East Perth Pty Ltd, once it was no longer clear that the maintenance of that application was in the best interests of creditors.