The mid-level Australian stockbroking firm BBY has gone into voluntary administration.
The administrators, Stephen Vaughan and Ian Hall of KPMG, say they are not yet in a position to move any trading accounts to third parties.
“We are in the process of reviewing records of the companies with a view to ensuring that all client positions are identified and reconciled as swiftly as possible,” they say.
However, the ASX is allowing some BBY customers, if they meet a number of conditions, to transfer coverage including options and derivatives to another broker. The deadline for this is the close of business Wednesday.
A meeting of creditors will be held on May 27.
The 170 staff were informed by email today the board of directors had been unable to secure investors to inject additional capital into the business.
Executive chairman Glenn Rosewall wrote: “I regret to inform staff that despite exhaustive efforts by the BBY board to secure investors to inject additional capital into BBY we have been unsuccessful. Consequently, we had no option last night but to appoint administrators from KPMG to manage the firm, effective immediately.”
Rosewall is the son of Ken Rosewall, the Australian tennis great, who also sits on the board of BBY.
St George bank has appointed Stephen Parbery and Brett Lord of PPB advisory as receivers.
Stephen Parbery said: “Our immediate priority on behalf of BBY’s transaction bankers is to ensure that the BBY’s operations are managed efficiently and professionally in the coming days. We understand the concerns of all stakeholders in this matter and we will be actively communicating with them throughout the process. We are working closely with the Voluntary Administrators and other stakeholders to explore all options for the business.”
The ASX said: “ASX Settlement Pty Limited and Austraclear Limited have imposed conditions on the participation of the Company (BBY) with effect from 18 May 2015. Those conditions have the effect of limiting the Company’s participation to allow an orderly wind-down of outstanding novated cash market settlements and derivatives margin payments.”
BBY was started in 1987 and has more than $2 billion in assets under administration. It claims to have turnover of $2.4 billion in ASX equities per month. It has offices in Adelaide, Auckland, Brisbane, Gold Coast, London, Melbourne, New York, Perth, Sydney and Wellington
BBY was reported to have been in negotiations with George Wang’s AIMS Financial Group for a capital injection.