ASIC just started a fire sale for the remains of Traditional Therapy Clinics
Health & Biotech
Tobias Funke in Arrested Development.
ASIC has called in the liquidators to get rid of the remains of Chinese wellness stock Traditional Therapy Clinics, nearly a month after the ASX delisted the company following a prolonged saga of queries, delayed accounts and a revolving boardroom door.
Traditional Therapy Clinics, which was listed under the code TTC before its unceremonious dumping in mid-December, was an owner of traditional therapeutic health and wellness clinics in China with a registered office in Perth.
The company appointed administrators in November, who were originally looking at recommending a recapitalisation deed of company arrangement and “preserving the value of TTC’s listing”, but that was nixed when the ASX announced it was going to delist the company.
“At this point, the administrators consider it likely that the company will be wound up and placed into liquidation,” administrator Bryan Hughes said at the time.
That was confirmed today, with ASIC issuing a press release saying it had applied to the Federal Court to wind it up and sell off its assets.
It has asked that EY liquidators Adam Nitikins and Samuel Freeman be appointed.
The company has been bedevilled by problems of its own making since about September last year, when the ASX began querying whether it was having problems repatriating money from China.
The company couldn’t get its accounts past auditors and therefore couldn’t release half-year accounts.
The company fessed up to the ASX that the problems were around their bank confirmation, a process that proves a company has access to sufficient financial resources to complete a transaction, such as the purchase of goods.
Then it lost two Australian directors, Geoff Ross and Christian Drysdale, “without warning” and their company secretary in the space of two days.
The company said Mr Ross and Mr Drysdale had urged the company’s auditors to “take additional steps to obtain new bank confirmation”, as the original bank confirmation was identified as irregular.
They’d resigned because “authorisation from the company management for the new bank confirmation was not forthcoming”.