An undisclosed personal illness has forced AGC Financial Services (AGC) into liquidation, leaving the dealer group with outstanding debts of more than $680,000.
Among the debts, AGC owed more than $300,000 to Australian insurers, including Asteron, AIA Australia, OnePath (formerly ING Australia), MLC and Zurich Australia, a report to creditors from the group’s liquidator, CRS Warner Kugel, said.
AIA Australia was owed $32,000, Asteron $44,000, ING/OnePpath $93,000, MLC $43,000 and Zurich $114,000, the report, which contained a list of AGC’s creditors, said.
The Australian Taxation Office was owed $60,000 and ASIC was owed $200, AGC employee and superannuation entitlements for five staff members stood at $12,000 and AGC director Alex Apostolopoulos was seeking an outstanding payment of $200,000, the report, dated 5 July, said.
“The director has attributed the failure of the company to personal illness,” it said.
“As the liquidation has just commenced, we are unable to comment as to the causes for the failure as proposed by the director. We do note, however, that our investigations as liquidators will seek to verify the director’s comments.”
As at 30 June 2010, AGC had six financial advisory groups and 16 advisers, seven of which were certified financial planners, the IFA Dealer Group Survey 2010 found.
The group did not disclose the total amount of funds under advice.
CRS Warner Kugel said Apostolopoulos had advised it that the company received trailing commissions from various insurance companies.
“We are currently attempting to obtain copies of AGC’s contracts with each of these insurance companies in order to determine if the trailing commissions are still payable given that AGC is now in liquidation,” the report said.
The director has supplied CRS Warner Kugel with a form 509 summary of affairs, in accordance with the provisions of the Corporations Act, which does not reveal the existence of any assets owned by the company.
“Due to this, the director has provided a personal contribution of $8800 to meet the expected costs and expenses of the liquidation,” the report said.
At a company meeting on 5 July, members of the company resolved to appoint CRS Warner Kugel representatives, Anthony Warner and Steven Kugel, as liquidators of the company.
A day later, ASIC cancelled AGC’s Australian financial services licence, a cancellation notice filed to ASIC confirmed.
At an extraordinary meeting of the members of the company on 24 June, it was resolved that the company should be wound up and CRS Warner Kugel be appointed as its liquidator.
AGC was incorporated on 20 September 2006 and operated a financial service business that specialised in providing insurance products.
