Lender York Capital to be wound up

York Capital Limited will be wound up after complaints from the corporate regulator that the lender failed to lodge financial reports and did not hold an annual general meeting for three years.

The company’s former chairman and chief executive was Graeme Byers, who was also a director of failed lender Fincorp.

Paul Burness of Worrells, who has been appointed liquidator of the company, was contacted for a comment this morning but did not respond before publication.

The Australian Securities and Investment Commission says the Federal Court’s decision follows its investigation into York’s failure to prepare and lodge audited financial reports and directors’ reports, and to hold AGMs.

“York also failed to appoint the statutory minimum of three directors and comply with a court order dated 9 June 2009 which required financial accounts be lodged with ASIC within 28 days,” ASIC says.

In a June 2007 directors’ report York Capital said its principal activity was a “specialised lender of short term loans secured by registered first or second ranking fixed and floating charge and/or secured by first or second mortgage over real property”.

The statement showed that the company reported a loss of $469,884 with no dividends paid and that revenue was just over $300,000.

It said the company was “exploring its options about how value can be restored for its members in respect of dividends and capital redemptions, including a review of its business model.

“In the meantime the company believes that it can meet all its creditor obligations as and when they fall due.

“This is based on the definition of creditor as made by the Supreme Court of NSW in it recent ruling on this matter. CPRP shareholders will not receive full repayment of their investment if the company was to be wound up at this time.”

The 2007 statements said a remaining loan for $518,870 was outstanding and recoverability was uncertain although the directors remained optimistic.

“Likely future developments in the operations and expected results are not included,” the report said.