Benjamin Hornigold demands repayment as JB Financial Group falls into receivership

Benjamin Hornigold demands repayment as JB Financial Group falls into receivership

The company that holds the majority of Benjamin Hornigold's (ASX: BHD) assets has fallen into receivership, and the embattled company is anxious for repayment.

JB Financial Group (JBFG) fell into receivership today, with Wexted Advisors being appointed as the group's receivers and managers by Partners For Growth (PFG) under its security over JBFG.

JBFG is the sole shareholder of King's Currency, the group which currently holds a $7.4 million loan repayable to Benjamin Hornigold under an order made earlier this year by the Takeover Panel.

In addition to the loan held by King's Currency, which Benjamin Hornigold insists is held under a trust agreement, the majority of BHD's assets are loans and services agreements with JBFG.

These include a $2.6 million JBFG convertible loan, a $900,000 unsecured loan (repayable 31 October), and a $1.1 million John Bridgeman loan. John Bridgeman's primary investments are directly and indirectly in JBFG.

"As disclosed in our announcement on 23rd October, the JBFG convertible loan and JBL loan are in default and the company believes that they are immediately repayable in full," says Benjamin Hornigold.

"PFG maintains that it holds a fixed charge over the King's Currency foreign currency notes. The company disputes PFG's characterisation and maintains that the King's Currency foreign currency notes are held on trust for the company."

"The company intends to defend its rights to the return of its property and the enforcement of its rights under the loans and service agreements with JBFG and its subsidiaries."

The repayment of the King's Currency loan was ordered following an unsuccessful takeover of Benjamin Hornigold by NSX-listed investment management group John Bridgeman.

John Bridgeman failed twice to take over Benjamin Hornigold, both times because the Takeovers Panel determined the investment manager was implementing lock-up devices and reducing competitiveness.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

A game changer? Aspiring to the new standard on workplace mental health
Partner Content
Work health and safety regulators have been more active in the area of mental health ri...
Aon
Advertisement

Related Stories

Angry merchants make good on class action against Tyro Payments

Angry merchants make good on class action against Tyro Payments

Disgruntled merchants have made good their threats to sue Tyro Paym...

NSW tourism and events sector gets $530m shot in the arm

NSW tourism and events sector gets $530m shot in the arm

As New South Wales blasts through vaccine milestones, the state gov...

Melbourne hearing tech startup Hemideina taking on Cochlear with $10m Series A raise

Melbourne hearing tech startup Hemideina taking on Cochlear with $10m Series A raise

A female-led medical technology company is lifting the frequency of...

Wood Tech plans PPE manufacturing boost with $12m Rogers Industries acquisition

Wood Tech plans PPE manufacturing boost with $12m Rogers Industries acquisition

Manufacturer The Wood Tech Group will strengthen its diversificatio...