The Cash Store Australia Holdings Inc. Announces the Appointment of a Voluntary Administrator by its Wholly-Owned Australian Subsidiary, The Cash Store Pty Ltd.
EDMONTON, Sept. 17, 2013 /CNW/ - The Cash Store Australia Holdings Inc. ("Cash Store Australia" or the "Company") (TSXV:AUC) today announced that, on September 13, 2013, its wholly-owned subsidiary, The Cash Store Pty Ltd. ("Pty"), appointed a voluntary administrator (the "Administrator") pursuant to Section 436A of the Corporations Act 2001. In the opinion of the directors of Pty, Pty is insolvent or is likely to become insolvent at some future time. The Administrator has taken control of the operations and assets of Pty.
On September 10, 2013, Pty received a letter from its third party lender's counsel giving Pty notice that it is suspending its consent to allow Pty to broker any further loans to customers. Pty complied with this request by suspending all broker activities. Cash Store Australia has no other operations other than the operations of Pty which is now under the control of the Administrator. Mr. Tom Denovan, the CEO of the Company, resigned on September 12, 2013.
On September 6, 2013 the Australian Securities and Investments Commission filed a Statement of Claim seeking a civil penalty against Pty for alleged breaches of the NCCP Act for loans originated between July 2010 and March 2012. The alleged breaches included not making reasonable enquiries into a borrower's financial situation, not making a preliminary assessment as to whether the loan is unsuitable and failing to verify the borrower's financial information. The Company is not a party to the Claim. The Administrator will be handling this Claim in the course of its administration of Pty's operations.
On September 4, 2013, the Company received correspondence from the Alberta Securities Commission (the "ASC") confirming that as a result of the content of the Company's news release dated August 30, 2013, staff at the ASC was closing its file and that the application seeking an order revoking the cease trade order was considered withdrawn.
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For further information on Cash Store Australia, please contact:
Bill Johnson, Chief Financial Officer
(780) 732-5695; e-mail: firstname.lastname@example.org