The Agency ‘purported administration’ ended by federal court

A “purported administration” entered into by The Agency’s biggest shareholder yesterday will end on February 1 following federal court orders.

In a market announcement tonight, the real estate group’s board claim the appointment of BDO for MCL 105 Pty Ltd “was undertaken for the purpose of destabilising The Agency and compelling the company to pay a disputed fee”.

That debt is approximately $385,000.

Today the federal court said the board nor Magnolia Equities, which called in BDO, can act to manage a voluntary administrator.

“A hearing has been scheduled… for the purpose of allowing an opportunity for any creditor or other sufficiently interested party to apply to discharge or vary the orders ending the purported administration,” the board approved statement added (story continues below).

“The Agency is in a strong financial position and the recent AGM results demonstrate the overwhelming support for the Board’s strategy to continue to drive shareholder value.

“The company looks forward to shortly releasing its Half Yearly unaudited accounts, which will show record numbers across key financial metrics”.

Yesterday, Magnolia said its debt is outstanding after repeated demands.

The borrower added it lost confidence in the brokers’ board and the “unknown financial position” of The Agency’s listed entity, AU1.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco