ASIC appeared in the Federal Court of Australia yesterday at the first mention of its application for the appointment of a provisional liquidator to ASX-listed Diploma Group Limited (Receivers and Managers Appointed) (Administrators Appointed) and its subsidiaries. The subsidiaries are:
1. Diploma Construction (WA) Pty Ltd (Receivers and Managers Appointed) (Administrators Appointed);
2. DGX Construction Pty Ltd (Receivers and Managers Appointed) (Administrators Appointed);
3. Diploma Properties Pty Ltd;
4. Diploma TCO Holdings Pty Ltd;
5. Diploma Construction (NSW) Pty Ltd;
6. Diploma Capital Pty Ltd;
7. Allegro Realty Holdings Pty Ltd;
8. Diploma Development Management Pty Ltd;
9. Weststructure Pty Ltd;
10. 24 Flinders Lane Pty Ltd;
11. 176 Adelaide Tce Pty Ltd;
12. Rockingham Serviced Apartments Pty Ltd;
13. Chemlabs Emporium Pty Ltd;
14. Allegro Realty Pty Ltd;
15. 300 Lord St Pty Ltd;
16. 303 Campbell St Pty Ltd;
17. 254 West Coast Hwy Pty Ltd;
18. Subiaco Residential Apartments Pty Ltd; and
19. Diploma Capital Securities Pty Ltd
(collectively, the Diploma Group).
In its application, ASIC alleges that the Diploma Group needs to be wound up on just and equitable grounds and/or on the grounds of insolvency.
ASIC seeks the appointment of David Hodgson and Andrew Hewitt, of Grant Thornton, as provisional liquidators of the Diploma Group and orders requiring the provisional liquidator to provide a detailed report to the Court that sets out, among other things, the financial position of the Diploma Group.
Mr Hodgson and Mr Hewitt have consented to being appointed as the provisional liquidators of the Diploma Group.
ASIC is considering the status of its application in relation to one further company.
ASIC made the application in relation to the Diploma Group to protect the interests of shareholders, investors and creditors.
The matter has been listed for hearing in the Federal Court of Australia in Perth at 11am on Thursday 11 May 2017.
ASIC's investigation into the Diploma Group is ongoing.
Background
Diploma Group Limited was a Perth-based commercial construction and property development company.
On 21 December 2016 a secured creditor appointed Martin Jones and Andrew Smith of Ferrier Hodgson as receivers and managers of Diploma Group Limited, Diploma Construction (WA) Pty Ltd and DGX Construction Pty Ltd.
Following this, on 22 December, the board of directors of Diploma appointed Matthew Donnelly, Mr Hewitt and Mr Hodgson of Grant Thornton as voluntary administrators (Administrators) to Diploma Group Limited, Diploma Construction (WA) Pty Ltd and DGX Construction Pty Ltd.
The Administrators held the first creditors meeting on 6 January 2017.
The Administrators have obtained orders from the Supreme Court of Western Australia extending the convening period for the second creditors meeting. A further creditors meeting is due to be held next week.
Creditors of the three companies in administration should contact the Administrators of those companies if they have questions about the timing of future creditors meetings or their rights in respect of the administration.
Editor's note:
On 11 May 2017 in Perth Federal Court, Justice McKerracher dismissed an application for an adjournment filed on behalf of a number of the defendants.
ASIC discontinued its application regarding one of the defendants and Justice McKerracher reserved his decision on ASIC's action against the remaining defendants.
Editor's note 2:
On 12 May 2017 in Perth Federal Court, Justice McKerracher appointed a provisional liquidator to each of the remaining 20 defendants, with those appointments stayed until 25 May 2017. Either ASIC or the defendants may apply to vary the orders made prior to 25 May 2017.
Justice McKerracher will hand down written reasons shortly.