Real estate company The Agency opposes the administrative action for disputed consideration
Real estate company The Agency has offered itself in court to oppose an administrative action brought by a former administrator for a disputed fee, winning the sentence that will conclude the administration on 1 February.
The ruling is subject to the real estate group paying $ 400,000 in court by January 22.
Magnolia investment group said it has appointed BDO volunteer directors on Tuesday prosecuting the real estate company for disputed debt of approximately $ 385,000, claiming that it has lost faith in The Agency Group’s board of directors and its unknown financial position.
Magnolia previously stated that it had made an offer for The Agency’s stock.
The court ordered that the administration remain in office until February 1 with a hearing scheduled for the same day to allow any creditors to come forward.
The court also ruled that those who initiated the administrative action be prevented from acting as voluntary administrators or from taking any action in this role, with the control of the Agency in the hands of its administrators.
The appointment of directors has no effect, except for those that the Agency Group has defined as “technical issues”, pending the determination of the procedure.
The position of the real estate company is that Magnolia’s appointment of voluntary directors “was undertaken with the aim of destabilizing the agency and forcing the company to pay a controversial fee”.
“The Agency is in a strong financial position and recent results from the general meeting of shareholders demonstrate overwhelming support for the board’s strategy to continue driving shareholder value,” the group said in a statement to ASX.
The investment group has appointed voluntary directors only at the top level of The Agency Group, which has no operations in itself.
The Agency has multiple branches that hold key operating licenses, employment contracts and trust accounts, but the administrator is not named on any branch.
The company said it is looking forward to releasing its unaudited semi-annual accounts shortly, which it says will show record numbers on key financial metrics.