Blue Chip's sole remaining investment vehicle, Northern Crest, has reported a $A3.02 million loss after a licensing agreement with a third party turned sour.Northern Crest is hoping to relist on the ASX next year after being suspended from trading in Febr
Blue Chip’s sole remaining investment vehicle, Northern Crest, has reported a $A3.02 million loss after a licensing agreement with a third party turned sour.
Northern Crest is hoping to relist on the ASX next year after being suspended from trading in February 2008 for failing to pay listing fees.
Northern Crest spawned from Mark Bryers’ Blue Chip group of companies and while it has attempted to extinguish legacy issues, it is looking to replicate the residential property scheme in Australia.
The Sydney-based company wrote off $A3.47 million in fees previously charged to Columbus Property Marketing Pty for residential investment property distribution activity”
This happened after it entered into a new licensing agreement with Rutherford Franchising Pty on April 1.
In its interim accounts Northern Crest said it made a “fundamental error” by not disclosing the transaction as a subsequent event in last year’s annual report.
Meanwhile, Northern Crest’s accounts showed a deficiency in net assets of $A7.8 million as at September 30, with available cash of just $A2000.
The group’s future as a going concern was based on several assumptions, including a removal of a trading suspension that would allow for a rights issue resulting in the transfer of $A4.8 million in debt to equity.
The company was also in negotiations with a major bank to raise additional capital.
“Whilst the company is meeting its current commitments as they fall due, it also has entered into arrangements with past unsecured creditors to meet those commitments on agreed timeframes."
In reviewing the accounts auditor Hall Chadwick flagged significant uncertainty regarding Northern Crest’s continuality as a going concern.
Mr Bryers stepped down from the board of Northern Crest in May last year, but was still paid $A113,000 in consultancy fees in the latest year.
Blue Chip’s collapse left more than 2000 investors some $84 million out of pocket.
Earlier this year Mr Bryers received a $A33,750 fine and 75 hours’ community service after pleading guilty to 34 charges relating to the company's mismanagement and improper accounting.
The Serious Fraud Office recently dropped an investigation into Mr Byers saying it did not have sufficient evidence.
