The empire of former high-flying entrepreneur and investor Steven Eckowitz is in ruins after creditors voted to put his investment company Harsit Holdings into liquidation.
Eckowitz is a former member of BRW’s Rich 200 list. His fortune was valued at $300 million back in 2007, but plunging equity markets saw him dropped from the list in 2008.
Yesterday, creditors believed to include BT Securities, ANZ and Suncorp, placed his investment vehicle Harsit into liquidation. According to a report in the Australian Financial Review, the company has debts of $56 million.
Creditors include Eckowitz himself, who is claiming a $7.5 million loan to Harsit.
Eckowitz made his first fortune as the founder of pesticide group Farmoz, which he sold to an Israeli chemical company called Makhteshim-Agan for $35 million.
He also invested heavily in hedge fund business Everest, which was started by his son-in-law, Jeremy Reid.
At the height of the bull market in 2007, Eckowitz’s shares in Everest were worth over $250 million. But as markets turned against hedge funds, shares in Everest plunged and the value of Ecowitz’s stake fell to around $67 million in mid-2008.
Eckowitz has been progressively selling off assets, including the bulk of his Everest stake. In mid-2008 he also sold a $20 million mansion in the exclusive Sydney suburb of Vaucluse. According to media reports in May, he was shopping for new digs in the $3 million price range.
Adam Shepard of insolvency firm Setter Shepard is handling the liquidation. He was unable to return calls prior to publication.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
