After several weeks of upheaval for The Agency, some certainty has arrived for the group in the form of definitive rulings from both the Takeovers Panel and the Federal Court.
The company has scored a significant victory in having recent administration orders overturned.
In an ongoing saga, Investment group Magnolia Capital (Magnolia) appointed administrators to pursue The Agency over a disputed debt of approximately $385,000 – a debt claim which is still disputed by The Agency Group.
The court had ordered the administration would stay in place until a hearing took place on February 1.
When no other creditors appeared, the administration ended, however orders were made setting the date for the hearing of the debt claim by Magnolia on The Agency for March 4.
In a second victory for The Agency, the Takeovers Panel also released a declaration yesterday of “unacceptable circumstances” in relation to Magnolia’s bid.
The Takeovers Panel acknowledged the concerns held by The Agency regarding Magnolia’s disclosure of its funding arrangements.
As a result, they found Magnolia’s failure to address those matters constituted unacceptable circumstances.
The Agency Group Managing Director Paul Niardone said this is a resounding success for The Agency Group who have had a lot to deal with in the past couple of weeks and strongly refute any suggestion that the company is insolvent.
“AU1’s directors are confident in their plans for the future and recent independent reviews have bolstered that confidence,” Mr Niardone said.
“The company is in a strong financial position, with new major shareholder Peters Investments providing the company with a new stable and financial major shareholder to support the company on its continued growth.”
Meanwhile, Magnolia released a statement in response, accepting the ruling by the Takeovers Panel, but noting they still have concerns.
“Magnolia remains an interested and significant shareholder and will continue to keep its options under active review,” said Magnolia Founder Mitchell Atkins.
On January 22, The Agency announced record quarterly revenue, positive cashflow and a growing sales pipeline into 2021.