Credit: Dreamstime
The administrator appointed to Forum Group has revealed it has received 111 enquires about the sale of the business, with 95 interested parties signing non-disclosure agreements (NDAs), as it continues to investigate the viability of the group of companies.
The group's owner Bill Papas reportedly ‘disappeared’ following an investigation by Westpac into fraud allegations totalling more than $250 million into his other company, Forum Finance.
Westpac and the Federal Court appointed Jason Ireland and Jason Preston of McGrathNicol as liquidators to Forum Finance on 9 July to investigate its assets and liabilities.
The Forum Group of companies were also placed into administration on the same day with the appointment of Domenico Calabretta, Thyge Trafford-Jones and Grahame Ward of Mackay Goodwin.
Credit: Forum Group Since 9 July, the administrator said it has been undertaking investigations across the group, which are ongoing, along with reviewing Forum Group's position, including the viability of various business units.
At the date of Mackay Goodwin's appointment, Forum Group employed approximately 200 staff.
Since then, the administrators closed operations of one business unit, Iugis Food Waste, because this business unit's ongoing operation was not viable. But the viability of ongoing operations for two other business units, Forum Group Managed IT Services and a solar panel business called Autonomous Energy, is currently still being reviewed.
The administrator indicated a decision is pending on whether it can continue the operation of the two business units, which employ approximately 170 staff, and successfully obtained a release of funds to pay wages until 8 July for both businesses.
“The review for their continued operation is ongoing,” the administrator said.
“There has been significant interest in the acquisition of both business units. To date, the administrator has received 111 enquires, 95 of which have signed a non -disclosure agreement and have received the details of the businesses,” Mackay Goodwin said.
The first creditor's meeting is on 20 July.
The administration impacts the Forum Group of Companies, which is understood to be the parent company for a range of entities, including Forum Group; Forum Fleet; Forum Group Financial Services; Aramia Holdings; Autonomous Energy; Forum Direct; Forum Enviro; Imagetec Financial Services; Imagetec Solutions; Intrashield Investment Group; Iugis Waste Solutions; OneSource Australia; Orca Enviro Solutions; Orca Enviro Systems; Smart Fleet Management; Spartan Consulting Group; and Eros Management.
