Directors appointed at The Agency Group on outstanding debt
Directors have been appointed to the real estate company The Agency Group for a disputed outstanding debt.
In a statement, investment group Magnolia said it had appointed BDO voluntary directors to sue the real estate company for its outstanding secured debt, after signing a guarantee agreement nearly a year ago.
The debt is estimated at only $ 379,000.
The investment group said it had lost confidence in the agency’s board and its unknown financial situation.
Magnolia said that despite raising additional funds and offloading assets, the debt remains unpaid after repeated requests for payment.
The investment group appointed volunteer directors at the highest level of the agency group, which has no operations per se.
The Agency has several subsidiaries which hold key operational licenses, employment contracts and trust accounts, but the administrator is not appointed on any subsidiary.
The real estate agency will continue to trade during this period with unaffected agents, sellers, buyers and tenants, Domain understand.
Comments have been sought from the Agency’s Executive Director, Matt Lahood.
The Agency’s actions were suspended on Tuesday.