Administrators Raj Khatri and Ivor Worrell of Worrell’s Solvency and Forensic Accountants said that liquidation would give creditors a better and more certain outcome.
Their report reveals that Storm owed the Commonwealth Bank of Australia (CBA) $27,094,574 at the time of its closure.
“Taking a very broad approach, the administrators believe that it is possible that the value of realisable assets available to the receivers will approximate the amount of debt due to the CBA, but with the real possibility of a shortfall,” the administrators said.
Fifty-four clients – excluding CBA – have so far made claims totalling $43,470,526 against Storm Financial.
However, solicitors Slater and Gordon have advised the administrators they act for about 1,000 clients and further substantial claims are expected.
The administrators said they rejected a proposed Deed of Company Arrangement received from two directors and instead recommended the company be wound up.
Creditors will meet in Brisbane next Monday to discuss the recommendation that the company be liquidated.