Intueri hires Grant Thornton to liquidate Australian assets after failing to find buyer

Intueri chairman Chris Kelly

Intueri Education Group has hired Grant Thornton to liquidate its Australian assets after it was forced to close its colleges across the Tasman sooner than it had expected.

The company had hoped to be allowed to run the Australian institutions until the end of the year but the Australian Skills Quality Authority cancelled the registration of Intueri's Conwal & Associates and Online Courses Australia (OCA) colleges on March 29. Intueri failed to convince Australian education authorities to re-register its colleges or renew funding.

"The board has been investigating a number of potential options for the Australian business, including the possible sale of assets and brand names," chairman Chris Kelly said. "Disappointingly none of these other avenues have been able to be realised."

The company's weak financial position meant it was unable to provide financial support for the Australian businesses. It "continues to focus on its New Zealand businesses and the current strategic review, and the liquidation is not expected to have any impact on the New Zealand operations of the Intueri Group," the company said.

Intueri hired High St Capital Partners for advice on options for the New Zealand operations including the sale of assets. The shares last traded at 1.4 cents compared with a 2014 initial public offering price of $2.35. It currently has a standstill agreement from ANZ Bank New Zealand on about $70 million of debt after advising the bank in February that it was in breach of lending covenants as at Dec. 31.

(BusinessDesk)


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I'd also add in the following .....

Intueri recommends that persons considering trading in Intueri shares seek professional advice prior to doing so.

Professsional advice could be a psychiatric assessment?

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The Overview on the NZX starts by stating the following:
"Intueri Education Group (IQE) is a New Zealand headquartered group of private training establishments delivering vocational education to students in New Zealand, Australia and from around the world. Intueri generates strong financial performance and excellent student outcomes"

This needs a radical update or is this just further evidence of their lack of attention to detail, which would explain their poor due diligence they seem to have undertaken when purchasing other business, that they claim have got them into this position.

They seem to have dug a hole that is too deep to get out of, it is just a matter of time before New Zealand follows in the liquidation footsteps.

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Amazing destruction of value by the Intueri crowd. The strategy of buying companies with leverage, gluing them together, IPOing and then destroying everything has been executed peerlessly.

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"Anyone want to buy shares in our visa mills? Anyone?"

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Tick Tock
Tick Tock,
Nearly time to go to the donut shop!

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Is there any further news yet on the sale of the Nz schools ?

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What surprised me most was not the failure, but that a prominent awarded Director joined the Board not that long ago without doing enough DD.

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