Australian Securities and Investments Commission (ASIC) announced it has commenced civil proceedings in the Supreme Court of New South Wales against Great Northern Developments Pty Ltd (Great Northern).

ASIC is seeking to obtain declarations of contravention of various provisions of the Corporations Act 2001 against Great Northern, orders winding up Great Northern and the schemes it is operating, and the appointment of a liquidator to the company.

Great Northern is a Penrith-based company which operates a property development and loan business. It raises funds from investors through loan agreements and promissory notes to finance its property development activities in Queensland.

ASIC alleged that the company has been raising, and is continuing to raise, funds from investors in contravention of the provisions of the Corporations Act 2001 and that it is just and equitable that Great Northern be wound up by the Court.

As at 30 June 2008, Great Northern owed in excess of $24 million to investors.

The matter returns to the Supreme Court of New South Wales on 28 September 2009.

10 September, 2009