Hundreds of people have been affected along with real estate projects while administrators are urgently investigating where the money has gone.
An Australian company with offices in Melbourne and Brisbane has collapsed and affected hundreds of people and real estate projects, as it was revealed that it owed about $ 70 million.
The collapse has affected 450 investors, as the investment company, which is called REMI Capital, went into voluntary administration on Wednesday.
Mark Prestige, who had been a managing partner at REMI Capital for nearly four years, acknowledged that there had been a “lack of communication” from the company in recent weeks.
“Remi had received advice from an external legal adviser who had not been contacted in recent weeks until the model that led to this difficult decision had been completed,” he wrote in an email to investors, shareholders and former staff members.
“REMI apologizes for the lack of communication in recent weeks. We urge you to trust creditors’ reports and not rely on any speculation you may hear. ”
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The independent investment company had promised access to “responsibly and ethically managed investments” and included a number of boutique real estate promotions, its website showed.
His property portfolio spanned several areas of Melbourne, including projects in the suburbs of Tarneit, Rockbank, Sunshine, Pakenham, Laverton and Sunbury.
REMI Capital also earned revenue-backed products against the company and its assets, paying quarterly interest payments to investors, the company said on its website.
He said it had a significant reach in Australia with foreign market penetration, including the APAC region and South Africa, he added.
Chris Baskerville, of Jirsch Sutherland’s insolvency and recovery company, has been appointed as a trustee.
He said it was too early to tell what had happened as his company was conducting urgent investigations to determine where the $ 70 million had gone.
“We are conducting an urgent financial assessment and working closely with the directors to try to find a solution and deliver the best outcome for investors and creditors,” he said.
“One of these solutions is likely to be a corporate agreement deed (DoCA) proposed by the directors.”
According to the Australian Securities and Investments Commission, a DoCA seeks to maximize the company’s chances of continuing to operate and aims to provide a better return on creditors than an immediate liquidation of the business.
Prestige, who ran the company formerly known as C2 Capital, said it had sympathized with the affected parties and decided that voluntary administration was the “best outcome” for creditors.
“This process will allow the board to propose a company agreement deed at the second creditors’ meeting, ”he said.
“Under the current model, a DOCA will result in better performance for all creditors instead of the alternative liquidation course where the result does not look positive.
“Remi is committed to continuing to work with the administrator and creditors and to a favorable consideration when submitting DOCA’s detailed proposal.”
Managers have been contacted by several REMI Capital investors already with a creditors meeting scheduled for June 6.
This is when the “big city end” companies, including those listed on the Australian Stock Exchange, run the risk of collapsing as interest rates rise and financial support for Covid ends. , have warned insolvency experts.
Companies in financial difficulties, which have been supported by a pause in debt collection during the pandemic, as well as the injection of financial support from governments, often known as zombie companies, would also be a “growing phenomenon”, they said. add.
The construction sector, in particular, has been hit hard by this year’s collapses.
Two major Australian construction companies, including Gold Coast-based Condev and industry giant Probuild, have already gone into liquidation this year.
Smaller operators such as Hotondo Homes Hobart and Perth Home Innovation Builders and New Sensation Homes, as well as Sydney-based Next, have also collapsed, leaving homeowners with pockets and unfinished homes.
An industry reporter told news.com.au earlier this year that half of Australia’s construction companies are on the verge of collapse as they trade insolvent, and thousands of homes could be affected. people in the coming months.
Operators in other industries have also fallen.
Send, a company that promised to deliver groceries in less than 15 minutes, collapsed earlier this month and endangered the jobs of 300 employees in Sydney and Melbourne.
Interested REMI Capital investors should contact the administrator at Remicapital@jirschsutherland.com.au.
Do you know more or do you have a similar story? We want to know about you sarah.sharples@news.com.au
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