Ann: Company Update , page-12

SA-based Charterhill Group.

Nova Real Estate Proprietary Limited has been placed in voluntary administration while another Charterhill Group company, Lending Solutions Proprietary Limited, is being wound up.

Andrew Heard and Anthony Phillips from Heard Phillips have been appointed as administrators of Nova Real Estate and as liquidators for Lending Solutions by sole director of both companies George Nowak, who is also chief executive of the Charterhill Group.

The Charterhill Group and other group entities are not impacted.

"As a result of the appointment there are approximately 140 investors in Nova with funds totalling just over $6 million and less than 20 investors in LSI with funds totalling just over $1 million exposed to loss," Mr Heard said.

The investors were based mostly in Victoria and New South Wales, but there were some in South Australia as well.

Lending Solutions was an internal lending entity between the Charterhill Group companies, Mr Heard said.

"An important role of the external administrators is to investigate the cause of the losses, report to creditors and other relevant stakeholders including ASIC on the results of those investigations and to meet with creditors and discuss the future for the companies."

Mr Nowak has outlined a plan to offer a Deed of Company Arrangement to the creditors of Nova in an effort to provide financial restitution, Mr Heard said.

"Over the course of the next few weeks this plan will be evaluated and creditors will be provided with relevant information to assist them understand the proposal and its outcomes."

"The director is helping the administrators with all inquiries and the provision of documents and information."

Mr Nowak told The Advertiser Nova Real Estate was facing some cashflow problems which need to be addressed.

He also stated that the websites of Charterhill Group and all its related entities had been hit by an internet virus, which had made them temporarily inaccessible.

Meanwhile the group's plans to list on the Australian sharemarket through a backdoor deal with WA company Natural Fuel have been deferred to April due to "some challenges".

The first creditors' meetings for investors in both companies will be held separately on January 31.