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Creditors of an insolvent mortgage and financial services group are facing a multimillion-dollar haircut, as the liquidator investigates whether the director should be charged.
At least four related entities of Charterhill Group entered insolvency in January. The Adelaide-based group offered a range of services including mortgage broking, real estate marketing, property management, contract negotiation and SMSF advice.
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Three of the Charterhill companies owe creditors a combined $11.5 million but have only collected $25,000 in payments, according to their six-month presentation of accounts.
Lending Solutions International is now under the control of the liquidator, Andrew Heard of Heard Phillips. It owes $10.2 million and has received $31 in payments.
Financial Wellness and EJ Property Developments are under the control of the receiver, Michael Basedow of Pitcher Partners. They owe a combined $1.3 million and have received $25,000 in payments.
Mr Phillips told The Adviser that it was too early to say how much money he would be able to recoup during the Lending Solutions liquidation, which is expected to end in April 2015.
“The company's assets relate entirely to loans to other Charterhill Group companies that are in receivership with Pitcher Partners and shares in other Charterhill Group companies that have an uncertain realisable value,” he said.
Mr Phillips said he would “conduct more comprehensive investigations” into Lending Solutions to “determine whether there are offences that have been committed and prosecutions that should be brought”.
Charterhill director George Nowak was ordered in February to surrender his passport.
Mr Basedow from Pitcher Partners had not replied to The Adviser’s request for comment by press deadline.
[Related: Charterhill director blames diversification for collapse]
