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19-004MR ASIC applies to wind up Traditional Therapy Clinics
ASIC has applied to the Federal Court to wind up Traditional Therapy Clinics Limited (TTC), a company that was previously listed on the Australian Securities Exchange (ASX) and has business operations in China.
The application arises from ASIC’s concerns that:
- TTC has no directors ordinarily residing in Australia and no company secretary;
- TTC’s external auditors found irregularities in bank records that they received from the company’s China-based management;
- TTC failed to provide authorisation to its external auditors for them to obtain independent confirmation of TTC’s cash balances directly from the Chinese banks;
- funds raised from investors may have been improperly diverted or dissipated; and
- TTC has failed to lodge its half-year review for the period ending on 30 June 2018.
ASIC seeks orders that TTC be wound up and liquidators Adam Nitikins and Samuel Freeman, of Ernst & Young, be appointed.
ASIC’s application has been listed for hearing before the Federal Court at Melbourne on 22 February 2019 at 9.30am.
TTC has its registered office in Perth, Western Australia, and is a franchisor and owner of traditional therapeutic health and wellness clinics in China.
On 3 September 2015, TTC was admitted to the official list of the ASX following the company raising $15 million through a prospectus issued on 20 June 2015.
On 3 September 2018, the ASX suspended TTC’s shares from trading following the company’s failure to lodge its 2018 half year report by the due date.
On 16 November 2018, the TTC board appointed Daniel Johannes Bredenkamp and Bryan Kevin Hughes, of Pitcher Partners, as administrators of the company.
On 17 December 2018, the ASX delisted TTC following the company’s failure to respond to various ASX queries.
Until ASIC’s application is determined, queries from TTC creditors or shareholders should be directed to company’s administrators, on (08) 9322 2022.
Editor's note 1:
On 29 January 2019, at a second meeting of creditors called by the administrators, it was resolved that TTC that be wound up and that Bryan Kevin Hughes and Daniel Johannes Bredenkamp of Pitcher Partners be appointed jointly and severally as liquidators of TCC.
ASIC’s proceeding, in which it seeks the winding up of TCC and appointment of a liquidator, remains listed with the Federal Court of Australia (Melbourne registry) pending further enquiries by ASIC.
Creditors of TTC seeking information should contact the liquidators at Pitcher Partners, Level 11, 12-14 The Esplanade, Perth, WA, 6000 (Tel: (08) 9322 2022).
General information about liquidation and its implications for creditors can be found in ASIC's Information Sheet Information Sheet 45 Liquidation: a guide for creditors [INFO 45].
Editor's note 2:
The matter has been adjourned for a further hearing on 5 April 2019.
Editor's note 3:
On 5 April 2019, the Court adjourned the hearing of ASIC’s application
until further order.