A sale agreement is expected to be finalised soon for what’s left of the failed stockbroker BBY which went into administration on Monday with not enough cash to meet its liabilities.
Sources say the administrators and receivers are nearing a written agreement with George Wang’s AIMS Financial Group.
Details aren’t yet known.
AIMS had been negotiating with BBY last week for a $2 million to $3 million capital injection in return for equity.
However, the receivers, Stephen Parbery and Brett Lord of PPB Advisory, have been finding more liabilities as they dig into the books.
About half the 170 staff of BBY are still on the books. The other half have either left for new jobs or been made redundant.
Executive chairman Glenn Rosewell, son of he tennis great Ken, called in administrators, Stephen Vaughan and Ian Hall of KPMG, on Monday.
Cracks were showing in BBY’s business in January when the ASX criticised BBY’s risk management and fined the broker $180,000 because it didn’t have enough funds to cover a $192 million transaction in 2014.
BBY was started in 1987 and has more than $2 billion in assets under administration. It claimed to have turnover of $2.4 billion in ASX equities per month.
More BBY coverage:
- A broker watching the BBY failure explains why options trading is a ‘mug’s game’ for most
- Some jobs at BBY have been saved, for now
- $2 billion Australian stockbroker BBY is falling apart
- A possible buyer is looking at failed stockbrocker BBY
- Failed stockbroker BBY would have been badly hurt by the reversal in bank stocks
- BBY has bigger capital problems than anyone thought
- Clients of stockbroker BBY scramble to save positions
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