Geoffrey Reidy and Andrew Barnden of Rodgers Reidy were appointed as Voluntary Administrators of eChoice Limited and thirteen (13) subsidiary companies on 27 November 2017, pursuant to Section 436C of the Corporations Act.
eChoice Limited (ACN 002 612 991)
Xplore Capital Pty Limited (ACN 075 949 478)
Equipment Leasing Solutions Pty Limited (ACN 129 323 351)
Folio Financial Services Pty Limited (ACN 078 713 345)
Folio Loan Services Pty Limited (ACN 104 700 870)
Folio Loans Australia Pty Limited (ACN 100 071 654)
Firstfolio Capital Management Pty Limited (ACN 125 150 101)
eChoice Services Pty Limited (formerly Firstfolio Services Pty Ltd) (ACN 093 078 356)
Folio Leasing Pty Limited (ACN 101 633 738)
Folio Wholesale Pty Limited (ACN 094 017 571)
Aptura Developments Pty Limited (ACN 117 144 644)
Club Financial Services Holdings Pty Limited (ACN 108 411 909)
Folio Franchising Pty Limited (ACN 127 618 517)
Folio Mortgage & Finance Pty Limited (ACN 120 208 415)
(Administrators appointed) (Collectively “the Group”)
The appointment was made by the secured creditor, Welas Pty Ltd. The secured creditor has supported the Group for many years but reached the view that it could no longer continue to support the Group in its current form. Welas took the step to appoint the Voluntary Administrators to enable eChoice to assess its options on how to secure and sustain the future viability of the business.
Excluding the historical debt burden, the business remains a viable opportunity in the hands of a new owner.
The Voluntary Administrators have not been appointed over any group companies with existing contracts with brokers or lenders. Accordingly, the administration will not affect ongoing third party stakeholder contractual obligations, such as trail payments by lenders to these companies and payments of trail by these companies to brokers.
The Voluntary Administrators will consider opportunities to sell the business and are already aware of one major financial institution which is interested in the business.
In the meantime, it is business as usual as far as possible. The focus of the business will be to ensure that employees, suppliers, lenders and brokers are able to deliver for customers as they always have.