Court winds up financial services firm

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The Supreme Court of Tasmania wound up Tasmanian debenture firm Braddon Investment and Finance yesterday, and investors are being warned to contact the liquidators office to attempt to reclaim around $5m.

The court declared Braddon had contravened the Corporations Act by failing to enter into a trust deed and appoint a trustee before issuing debentures to the public.

Braddon, based in Smithton, raised around $5m from investors through unsecured deposits. It used the money to offer loans to the general public, usually for the purchase of cars or farm equipment.

Corporations and governments frequently issue debenture bonds to secure capital. 

The court order was made after an application by ASIC, which did not allege there had been any dishonesty or insolvency. Braddon did not oppose the orders.

“As the company has not been in a position to comply with the law, ASIC took action to wind it up – this has been done to protect the interests of investors,” ASIC commissioner John Price said in a statement.

Steven Hernyk of Deloitte, in Launceston, was appointed liquidator. If your client has invested with Braddon then contact ASIC or the liquidator’s office on (03) 6337 7000.