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ISCOVER
A mortgage broker has entered liquidation as part of a complex insolvency involving at least four related companies and millions of dollars of debt.
Adelaide firm Lending Solutions International collapsed on January 20, with Andrew Heard of Heard Phillips appointed liquidator.
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Lending Solutions was liquidated with unsecured debts of $9.6 million, according to Heard Phillips. However, $8 million of those debts were held by three related companies, with Nova Real Estate owed $5 million, Australian CGI owed $2.3 million and Harralex Group Investment owed $760,000.
The firm also had $9.1 million of assets, although only $1.7 million is thought to be realisable, leaving a deficiency of about $7.9 million, according to Heard Phillips.
Lending Solutions offered a range of financial services, including mortgage broking, according to the firm’s LinkedIn profile.
“We deal only with lending money for non-owner-occupied investment properties. The lenders we use offer both residential and commercial funding,” according to the profile.
“Our services include pre-approval, comp analysis, deal analysis, consulting, advisory services, underwriting, packaging, lender placement, processing, real estate marketing, contract negotiation, transaction management and FSBO marketing.”
Lending Solutions director George Nowak could not be reached for comment. His mobile phone contains a recorded message directing callers to Heard Phillips.
Mr Nowak is also a director of the Charterhill Group, which includes Lending Solutions and Nova Real Estate. Nova also collapsed on January 20, with Heard Phillips appointed administrator.
Heard Phillips said in a statement: “As a result of the appointment, there are approximately 140 investors in Nova with funds totaling just over $6 million and less than 20 investors in [Lending Solutions] with funds totaling just over $1 million exposed to loss.”
Heard Phillips said Mr Nowak had proposed a deed of company arrangement, which would allow Nova to continue trading. That deed would have to be approved by creditors.
The first creditors meetings for Lending Solutions and Nova will be held on January 31.
Two additional Charterhill Group entities have also been placed in receivership. Pitcher Partners was appointed receiver and manager of Financial Wellness and EJ Property Developments on January 23.
The future of Charterhill Group is unclear. The group’s website has been removed and its phone number has been disconnected.
