Franchisees urged to fight liquidation danger

by Adam Smith30 May 2012

Refund franchisees are being urged to make their voices heard as rumours swirl that some of the company's creditors will vote for liquidation in spite of the business' impending sale to Homeloans.

Homeloans Ltd last week announced it would acquire Refund Home Loans, along with the company's current stable of 135 brokers and a loan book of more than $1.9bn. But a letter to franchisees obtained by Australian Broker has warned that some of the company's creditors may still want Refund liquidated.

The letter, from franchisee bid representative Independent Mortgage Professionals (IMP), assures Refund franchisees that the company's sale to Homeloans is "well on track" for a final settlement on 8 June.

"That is good news for all franchisees who want to sign up with Homeloans Ltd or have already done so," IMP said.

But IMP has urged Refund franchisees to submit proxy forms for a creditors' meeting to take place today.

"Unfortunately there is a rumour that a few creditors want to vote for liquidation of the company at the reconvened meeting of creditors to be held ... on 30th  May, a few days before final completion of the purchase by Homeloans Ltd. That could be disastrous for the franchisees who want to continue with Homeloans Ltd," IMP said.

The letter has also urged franchisees to adjourn the second creditors' meeting until 29 June, to provide ample time for the Homeloans acquisition to be completed.

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