Sphere creditors owed $11m, early estimates show
Failed authorised representative network Sphere Insurance Group could owe more than $11 million to creditors, preliminary projections released by its liquidator show.
The total includes an estimated $10.88 million owed to 123 unsecured creditors, mostly insurers and underwriting agencies, and $945,195 for secured creditor Judo Bank.
A June 15 letter provides an update on creditor rights and the liquidation process, and says amounts are “not final and only based on company records”.
The largest industry creditors listed include NTI with an estimated $1.25 million, Vero Insurance at $1.086 million, Allianz with $1.084 million, Prevail on $680,125, Strata Community Insurance at $600,900 and Strata Unit Underwriting Agency with $535,956.
Others owed amounts that may range from $500,000 to $100,000 include Clover, QBE, CHU, Zurich, Pen Underwriting, Global Transport & Automotive Insurance Solutions, Underwriting Agencies of Australia, HMIA, Hollard Commercial Insurance, ATL Insurance Group, Axis, AFA, St George, Goat Insurance, MB Insurance Group and Sure Insurance.
Tracy Lee Knight of WCT Advisory was appointed liquidator on June 5 after Sphere’s director terminated all employees and notified various ARs of the company’s winding up.
Ms Knight says investigations are at an early stage and an update will be provided in a statutory report that must be issued within three months of appointment.
“Since my appointment, I have taken steps to secure the company’s assets, bank accounts and books and records,” she told creditors.
The liquidator says she is continuing to liaise with the director and former director, ARs, underwriters, insurers and other stakeholders to understand the company’s operations and financial position.
Next steps including recovering and realising any available property, investigating company affairs, reconciling and assessing dealings with the business’ trust account, reporting to the Australian Securities and Investments Commission, and distributing available funds to creditors in line with their priority level.
From the latest Insurance News magazine: Hutch founder Robin Johnson explains why touchless transactions are the future of broking