Creditors of collapsed financial planning group Storm Financial have been told to put the company into liquidation and reject a restructuring proposal from the company’s founders, Emmanuel and Julie Cassimatis.
According to a report on Business Spectator, a report to be sent to creditors later today from voluntary administrators Ivor Worrell and Raj Khatri of Worrells Solvency and Forensic Accountants will recommend that liquidation is in the best interests of creditors, who are owed $78 million.
The Cassimatises are believed to have sent an emotional letter to creditors, claiming they are best placed to pursue Commonwealth Bank, Storm Financial’s main lender and the main provider of margin loans and mortgages for Storm clients.
The couple blames CBA for the Storm collapse.
“Most of us have been together as a group for many years – we are best placed to work together to fight this battle, not drawing our swords separately against each other,” the letter said.
“We have a common enemy – let us work together to defeat the CBA for what it has done to all of us.”
A condition of the couple’s deed of company arrangement would involve creditors giving up any rights to take action against the founders.
The letter to creditors is expected to be released via Worrells Solvency’s website later today.
Related articles:
•· ASIC freezes $2m payment to Storm Financial founders
•· Five lessons from the collapse of Storm Financial
•· “We’ve lost money too” – Storm Financial founders break silence
•· Queensland’s Storm Financial Group under pressure
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.
