BBY creditors meet behind closed doors to hear the extent of the damage

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A meeting of creditors of stockbroker BBY, which went out of business after it couldn’t meet liabilities from its options trading unit, is underway in central Sydney.

The administrators, Stephen Vaughan and Ian Hall of KPMG, are giving an initial update on the extent of liabilities of the failed broker.

This meeting, being held behind closed doors at the Sydney Masonic Centre, will present an overview only of the financial situation. A more detailed financial report will be presented at a second meeting of creditors next month.

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 but most have been given redundancy notices. They 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.

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