Storm Financial's Administrators Recommend Liquidation

Media statement for immediate release

Storm Financial's Administrators recommend liquidation

Brisbane, March 16, 2009: The Administrators of Storm Financial Limited, Raj Khatri and
Ivor Worrell of Worrells Solvency and Forensic Accountants, today recommended that
creditors resolve to place the company into liquidation.

The Administrators said the recommendation was offered because they believed it
would provide a better and more certain outcome for creditors.

The report and options available to creditors has been sent to all creditors and will be
discussed at the second meeting of creditors, to be held next Monday in Brisbane.

The administrators recommended:

Creditors reject a proposed Deed of Company arrangement, which had
been received from two of the directors and the shareholder of Storm. The
proposal seeks control over a $2 million dividend paid to director Emanuel
Cassimatis, which is subject of an injunction placed by ASIC
The company be wound up, because it is insolvent. Placing the company into
liquidation will provide the Liquidator with powers to conduct further
investigations into the affairs of the company; look at the matter of Insolvent
Trading; recover any Preferential Payments made to creditors; examine and
recover any other Insolvent Transactions and examine the general affairs of
the company
The Administration continue rather than hand control of the company back to
directors

The report also reveals:

The total obligation which Storm had to the CBA at the closure of Storm's
business was $27,094,574.
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 the debt due to the CBA, but with the real possibility of a
shortfall
Total claims received to date by 54 clients (excluding CBA) are for
$43,470,526.38
However, the Administrators have been advised by Mr Damien Scatinni, of
Slater and Gordon Solicitors, that his firm acts for about 1000 clients and that
very substantial claims will be lodged by his clients

The Administrators also stated that they had no knowledge of any letter which the
directors may have sent to creditors relating to the Administration.



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For further information please contact:


Campbell Fuller
Porter Novelli
e [email protected]
p (02) 8987 2100
m 0407 170500


Note to editors:



About Worrells

Worrells is an accountancy firm dedicated to the areas of Solvency Management,
Insolvency Administration and Financial Investigation. The firm has a long history, with
founding and senior partner, Ivor Worrell, being recognised as a senior and
experienced insolvency practitioner.

Worrells has offices in Brisbane, the Sunshine Coast, the Gold Coast, Melbourne, and
Sydney. Its 14 full-time practitioners have a combined experience in the insolvency
and financial investigation industry of more than 250 years. The practitioners are all
mature and experienced and recognised in their states.

We have undertaken in excess of 25,000 appointments in both the small and medium
business arena, in both secured and unsecured situations, with both companies and
individuals. We have a wide range of experience in all types of administrations.

We know that both debtors and creditors are under great stress at these times. We
make sure that everyone is treated fairly, with respect and due consideration.







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