Staff at the failed stockbroker BBY are being briefed late today about progress on finding a way to trade out of its current frozen position.
It is understood there are negotiations to try to sell the business but this depends on the size of liabilities.
One possible buyer, at the right price, is George Wang’s AIMS Financial which was looking at a stake in BBY as late as last weekend.
Staff are only paid until the end of today, according to the ABC.
Sources said the receivers, Stephen Parbery and Brett Lord of PPB advisory, are finding liabilities greater than the $2 million to $3 million which BBY had been seeking as a capital injection just last week.
In the meantime, staff have been briefed on what to say to clients: “The appropriate response at this stage is that the BBY business is suspended and no trading can occur.”
BBY executive chairman Glenn Rosewall on Monday called in administrators, Stephen Vaughan and Ian Hall of KPMG, on Monday.
The 170 staff were informed by email that the company had been unable to secure investors to inject additional capital into the business.
The ASX late today extended a deadline to transfer option positions from BBY to 9am Thursday from 5pm today. Tyhe said said it extended the timeframe because of the “large number of qualifying client positions sought to be transferred”.
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.