The mooted sale of Refund Home Loans now looks set to fall through, as the administrator has told franchisees prerequisites have not been satisfied.
In a letter obtained exclusively by Australian BrokerNews, administrator SV Partners has advised the sale to State Home Loans "now looks unlikely to proceed" due to State Home Loans' inability to satisfy prerequisites of the purchase contract. The development comes just days after franchisees blasted the administrator for "dragging its feet".
SV Partners told franchisees that it was continuing to explore alternative options to get the sale over the line, but advised that if a solution is not found by the end of the week, the sale will not go ahead.
"We regret the delays and major inconvenience caused to franchisees as a result; however, we can only reiterate that we are working as hard as possible to obtain a satisfactory result for franchisees and creditors," SV Partners said.
The administrator is now negotiating with other interested parties for a sale of the business. SV Partners said one of the potential buyers is Independent Mortgage Professionals, a NSW-based business registered as as a proprietary company on 27 January of this year.
"An amended draft contract was forwarded to IMP's lawyer on Monday 5 March 2012 encapsulating the terms [under] which we understand IMP are willing to purchase the business, and we are awaiting their confirmation of whether they can proceed on the terms proposed," the administrator said.
SV Partners told franchisees it was their understanding that IMP intends to purchase Refund as a going concern, including the assignment of franchise agreements for those franchisees who have not terminated.
Refund administrator "in no rush" for sale