The administrator of the failed Leisuretech Australia distribution Company has admitted that there are “questionable issues” relating to the value of assets in the failed Company which was placed into administration with debts of over $1.6M dollars despite the fact that it was earning over $750,000 a year from A Bus patents.
The administrator has also said that he is now probing how the new Company which now owns the name Leisuretech and all the previous assets including the A Bus patents was able to borrow over $2M from a new bank after paying out $2M to the National Australia Bank.
Leisuretech was placed into administration after it lost a UK High Court appeal relating to the A Bus patent in Europe. Armour Group and UK legal firm Allen & Ogilvy who are owed over $1.6M have engaged legal teams in Australia to investigate Leisuretech and the actions of Leisuretech CEO Andrew Goldfinch and accountant account Jonathan Ritchie.
|Jonathan Ritchie Accountant and director of Leisuretech and long time friend of Andrew Goldfinch.|
The administrator Brian Allen of Burton Glenn and Allen of Sydney is also investigating what assets and guarantees were made available when AC & EM G Pty Limited which now trades as Leisuretech applied for a $2M overdraft recently.
ChannelNews has also been told that vendors whose products are distributed by Leisuretech are concerned over the placing of Leisuretech Australia into administration with debts of $1.6 million and in particular the transfer of distribution agreements into a new Company.
Last night Andrew Goldfinch the CEO of Leisuretech met with senior executives of Russound in the USA in a desperate effort to secure the ongoing distribution of Russound gear in Australia and the use by Russound of Leisuretech’s A Bus technology which is now the centre of a dispute after it was discovered that Leisuretech was pocketing over $750,000 a year in royalty fees from the A Bus patent at the time he placed Leisuretech into administration.
It has also been revealed that Goldfinch and his accountant partner Jonathan Ritchie, who recently changed the name of his accounting practise from JR & Co Financial Solutions to 360 Financial Vision are under investigation relating to the ownership of the offices where Leisuretech operate from.
Brian Allen the Leisuretech administrator said” There are issues that need deep investigation in particular the value of assets and the ownership of assets that have been used to raise additional loans. I am currently talking to the banks and I am waiting for additional information from them. If I am not happy with the valuations the Company will be liquidated and it is then up to the creditors to take action”.
“There are questionable issues and these need to be investigated. It is obvious that Leisuretech saw the bullet coming and what I have to do is make recommendations. It is then up to the creditors to act on them”.
The CEO of Armour Group said from the UK last night that he was “determined to recover the money” that Andrew Goldfinch and Leisuretech owe him. “We have hired legal representation in Australia via Clayton Utz and we will not give up. I am confident that we will win our case in the European Courts for the A Bus patent”.
“In the US and other markets the A Bus patent is netting for Andrew Goldfinch over $750,000 a year so if for example this has a 5 year life before new technology comes along the value of the patent is over $3M less around $750,000 in administration costs. He will also benefit from growth in demand for the technology over the next few years”.
“What he is trying to say is that all up Leisuretech, the A Bus patents and the goodwill of the business is only worth $2M this is baloney as the A Bus patents alone are worth considerable more than $2M”.