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ASIC winds down property group

By Reporter
 — 1 minute read
A Brisbane-based company associated with two failed property developers has been caught in ASIC's net.
ASIC has wound up a Brisbane-based company associated with two failed property developers.

The industry regulator filed an application in the Supreme Court of Queensland late last week seeking the winding up of Neovest Ltd on grounds of insolvency and on just and equitable grounds.

The company is linked to failed property development companies, Neo Lido Pty Ltd and Neolido Holdings Pty Ltd.

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Neovest raised capital from the public between February 2004 and March 2005 to lend to the Neo Lido group of companies (including Neo Lido and Neolido Holdings). The capital was used for the purchase and development of property located in various Brisbane suburbs.

In November 2005, the Supreme Court of Queensland ordered the winding up of Neo Lido and Neolido Holdings following an ASIC application to wind up the companies on grounds of insolvency.

As at December 30, 2005, Neovest had raised more than $13 million from about 250 investors through the issue of redeemable preference shares. The majority of these funds were loaned to Neo Lido and Neolido Holdings.

According to an account lodged with ASIC by the liquidator of Neo Lido on May 24, the company had liabilities of more than $38 million. Dividends were not expected to be paid to any class of creditor.

An account lodged with ASIC by the liquidator of Neolido Holdings indicated the company had liabilities of more than $29 million as at May 24. Dividends were not expected to be paid to any class of creditor.

The matter will be heard on November 21.

ASIC winds down property group
A Brisbane-based company associated with two failed property developers has been caught in ASIC's net.
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