Refund eyeing sale before Christmas

by Adam Smith05 Dec 2011

The administrator of Refund Home Loans has claimed the business could sell before Christmas.

In a letter to franchisees obtained by Australian BrokerNews, the company's administrator, SV Partners, has claimed it has shortlisted three potential suitors for the sale of the business.

SV Partners said it had commenced discussion with the interested parties, who are undertaking due diligence on the purchase. The administrator said a sale is being attempted before Christmas.

According to the letter to franchisees sent last Friday, a sale contract will likely include conditions that outstanding trail and upfront commissions owed to franchisees be paid on settlement.

However, the administrator warned this is likely to be conditional on franchisees waiving their right to issue breach or termination notices to the company, or withdrawing them where they have already been issued.

SV Partners has warned franchisees that termination of franchise agreements could "jeopardise commissions owing", and urged Refund franchisees to remain patient.

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