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Major bank subsidiary snaps up aggregation businesses

by James Mitchell7 minute read
Major bank subsidiary snaps up aggregation businesses

A mortgage business wholly owned by a big four bank has acquired a number of businesses from embattled aggregator eChoice.

Administrators Rodgers Reidy have confirmed on Friday (15 December) the sale of eChoice’s operating assets, including its intellectual property and platform and its digital home lending solutions, to Finconnect (Australia) Pty Ltd, a subsidiary of CBA.

The sale does not include eChoice-related lender or broker agreements as these are held by eChoice-related entities, which are not under the control of the administrators.

“Our understanding is that the lender and broker agreements will not be affected by the sale and will continue to operate in the normal course,” the administrators said.

“Under the terms of the sale, it’s expected that the business of the group will continue to trade in the normal course. The sale to CBA provides an opportunity for further growth and investment in the eChoice platform. Most employees will be offered employment with the purchaser. It will also offer suppliers the opportunity to continue to trade with the group in the future.

“We will continue with our review of the affairs of the group with a view to the preparation of a report to creditors next year. This report will provide details of the group’s financial affairs, including its background and historical trading. At this stage, we are not in a position to advise in respect to these matters or provide any further details pertaining to the sale agreement. These are issues which will be properly considered in our report to creditors.”

In accordance with the orders of the Federal Court of Australia made on 14 December 2017, this report will be forwarded to creditors to convene a meeting of creditors to be held by 29 March 2018.

More to come.

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