USGFX Liquidator BFI Ferrier Releases Update on Public Examination to Creditors

BRI Ferrier, the liquidator of bankrupt Australian Retail forex broker Union Standard International Group Pty Ltd (USGFX), has released today an update to creditors in respect of upcoming applications to the Federal Court of Australia (Federal Court).

BRI Ferrier has made significant progress since its last report, investigating USGFX's affairs and filing an application for the Court's approval to use the trust funds for, and to, publicly examine various parties.

Public Examination

BRI Ferrier has shifted its focus to pursuing possible recovery actions, where the initial step is to hold a Public Examination of key parties involved. A Public Examination is a legal process used to gather evidence, whereby Liquidators can seek orders from the Court to compel parties to produce documents to the Court and to appear before the Court to give evidence under oath on matters pertaining to the Company's affairs. The information obtained can then be utilised to pursue recoveries for the benefit of creditors, or possibly to prosecute parties for misconduct.

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On 17 June 2022, BRI Ferrier filed an application with the Federal Court for its approval to use the statutory trust funds for the public examinations and to hold a Public Examination. Relevantly, its application seeks orders that it can examine numerous parties located within Australia, and also requires production of documentation from various entities and persons. BRI Ferrier’s solicitors anticipate that the examinations will run over ten (10) days later this year, subject to the Court's availability and its further orders.

Ancillary applications for additional examinees (primarily parties located offshore) may also be filed in the near future depending on further legal advice. BRI Ferrier also understands that a party representing a group of interested creditors has applied to the Australian Securities and Investments Commission (ASIC) for its approval to participate in the Public Examination process as an Eligible Applicant. That application is still pending before ASIC.

Given that this is a new set of investigations under the Corporations Act, BRI Ferrier has filed an Interlocutory Process seeking directions from the Federal Court, approving its use of the trust funds held by the Company for the Public Examination process. This approval application has been scheduled to be heard by Justice Jagot on 25 July 2022 at 10.15am (AEST).

BFI Ferrier intends to provide a more detailed report to all creditors once it has completed the Public Examination process and has a view on what recoveries may be available to pursue. In the interim, it will continue to provide regular reporting to the Committee of Inspection (COI), as the creditors' appointed representatives.