All 170 staff at the failed stockbroker BBY, which went out of business after it couldn’t meet liabilities from its options trading unit, have been made redundant.
A two-hour meeting of about 150 creditors behind closed doors in central Sydney today heard from the administrators, Stephen Vaughan and Ian Hall of KPMG.
Sources said the creditors were frustrated but there were no displays of anger.
Among those at the meeting was Glenn Rosewell, son of tennis great Ken, the executive chairman and majority owner of BBY.
The administrators gave an initial update on the extent of liabilities but a more detailed financial report will be presented at a second meeting of creditors next month.
KPMG told the creditors that it couldn’t get put a total figure on the liabilities. “Any number we could give will be wrong,” they said.
George Wang’s AIMS Financial has been negotiating to buy a piece of the business since BBY’s executive chairman Glenn Rosewell called in administrators at the start of last week.
He’s already offered employment contracts to some of the 170 staff. All staff are now creditors.
The week before BBY went under, AIMS Financial had been looking at tipping in up to $3 million in exchange for equity.
Since then, the receivers, Stephen Parbery and Brett Lord of PPB Advisory, have been finding more liabilities as they dig into the books.
More BBY coverage:
- BBY creditors meet behind closed doors to hear the extent of the damage
- A deal is close for the sale of BBY
- 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