Following an application by ASIC, the Federal Court of Australia has ordered the appointment of Ms Robyn Erskine and Mr Adrian Hunter of Brooke Bird as joint and several provisional liquidators of Uglii Corporation Limited, Traralgon Technology Holdings Limited, Uglii Find Australia Limited, BizMio Limited, Projects Discovery Services Pty Ltd and Global Ads System Pty Ltd (formerly Uglii Ads System Pty Ltd).
ASIC’s application for the appointment of provisional liquidators was based on a number of concerns, including that the companies had been involved in numerous contraventions of the corporations legislation, were not being properly managed and were likely to be insolvent or likely to become insolvent.
Justice Davies, having regard to ASIC’s concerns, ordered the appointment of provisional liquidators to the companies. Under the orders made, the provisional liquidators are to provide to the Court within 42 days a report which includes:
- the identification of the assets and liabilities of each of the companies;
- an opinion as to the solvency of each of the companies;
- the likely return to creditors and any other information necessary to enable the financial position of the companies to be assessed;
- any suspected contravention of the Corporations Act 2001 by any of the companies or their directors/officers.
In making the orders, Justice Davies said:
The evidence furnished by ASIC raises serious questions about the financial viability and solvency of the companies which, significantly for the present application, have not been answered by Uglii Corporation. Moreover, the material before the Court does not enable the view to be formed that the cash flow projections are, or may be, reasonably based or that the patents owned by Uglii Corporation do, or will have, substantial value. The evidence strongly suggests that the companies may not be solvent.”
The Court has listed the matter for a further hearing to occur at 9.30am on 3 November 2016.