Rubicon insolvent, says administratorAugust 27, 2009 Rubicon Asset Management Ltd, which was part of now collapsed Allco Finance Group Ltd, and managed three listed property funds, is probably insolvent and is likely to be wound up, its administrator says.
Administrators Michael Owen and Paul Billingham of Grant Thornton said in a statement on Thursday that the schemes managed by Rubicon were also insolvent, or likely to become insolvent in the near future.
The listed entities managed by Rubicon are Rubicon America Trust, Rubicon Europe Trust and Rubicon Japan Trust.
The administrators said they would approach the NSW Supreme Court to apply for orders that the schemes be wound up, and that they be appointed to take responsibility for the process.
If the orders were granted, they would make applications in the various countries to liquidate the assets.
Mr Owen and Mr Billingham said they did not know whether there would be anything left at the end of the liquidation to return to creditors.
The administrators said that the insurers of the directors and executives of Rubicon had indicated that they would cease insuring them from September 1.
As a result, unless alternative insurance could be found, the directors and executives were likely to resign by the end of the month.
RAT Price at posting:
0.9¢ Sentiment: Hold Disclosure: Held
