EDMONTON,
Sept. 17, 2013 /CNW/ - The Cash Store
Australia Holdings Inc. ("Cash Store Australia" or the "Company")
(TSXV:AUC) today announced that, on September 13, 2013, its wholly-owned subsidiary,
The Cash Store Pty Ltd. ("Pty"), appointed a voluntary
administrator (the "Administrator") pursuant to Section 436A of the
Corporations Act 2001. In the opinion of the directors of Pty, Pty
is insolvent or is likely to become insolvent at some future time.
The Administrator has taken control of the operations and assets of
Pty.
On September 10,
2013, Pty received a letter from its third party lender's
counsel giving Pty notice that it is suspending its consent to
allow Pty to broker any further loans to customers. Pty complied
with this request by suspending all broker activities. Cash Store
Australia has no other operations other than the operations of Pty
which is now under the control of the Administrator. Mr.
Tom Denovan, the CEO of the Company,
resigned on September 12, 2013.
On September 6,
2013 the Australian Securities and Investments Commission
filed a Statement of Claim seeking a civil penalty against Pty for
alleged breaches of the NCCP Act for loans originated between
July 2010 and March 2012. The alleged breaches included not
making reasonable enquiries into a borrower's financial situation,
not making a preliminary assessment as to whether the loan is
unsuitable and failing to verify the borrower's financial
information. The Company is not a party to the Claim. The
Administrator will be handling this Claim in the course of its
administration of Pty's operations.
On September 4,
2013, the Company received correspondence from the Alberta
Securities Commission (the "ASC") confirming that as a result of
the content of the Company's news release dated August 30, 2013, staff at the ASC was closing its
file and that the application seeking an order revoking the cease
trade order was considered withdrawn.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE The Cash Store Australia Holdings Inc.