Structured finance company collapses

Sydney-based structured finance and investment company Securities International Limited has been placed in voluntary administration after collapsing with debts of $2-3 million.

Martin Green, partner at insolvency firm BRI Ferrier, says SIL is an unlisted public company with about 260 shareholders.

He says chief executive Stephen Duncan has been trying to trade the company out of difficulty and had asked shareholders to inject more capital into the business in recent months.

However, a directors penalty notice sent by the Australian Taxation Office left SIL with little room to move.

“The directors really had no option to protect their position by appointing an administrator,” Green says.

The company, which offers a range of services including structured finance, merger and acquisition advisory services and investment advice, specialised in deals in the Middle East and China.

Green says unsecured creditors are owed about $1 million, and says it could be “the shortest job ever” if SIL receives money owing to it from various deals.

“If in fact the payments are made the creditors would be paid in full and there would be returned to shareholders.”

However, Green is not confident that getting the money paid will be easy, particularly as some of it is owed by overseas firms.

In one instance, money is owed by a Chinese company and Green says it appears that some debt repayments have gone missing.

“There are hairs on this all over the place.”

Green says the share registry of the company has expanded in recent years after one of the original shareholders sold off their shares to a number of Melbourne-based investors.