EXCERPTS
Founder of ABC Learning, Eddy Groves, remains grounded for another few months at least after consenting to a Federal Court order this week that will keep his passport in the hands of Australia's corporate watchdog while investigations continue into the childcare operator's collapse.
The current order, which prevents him from travelling overseas, or transferring any assets without the consent of the Australian Securities and Investments Commission, extends until the end of February.
ASIC would not comment yesterday on the relatively short extension of the travel ban and whether this meant its investigation was expected to come to a conclusion before March.
The order still allows Mr Groves to pay expenses related to the many legal actions that he has either initiated, or, been the target of. His former wife, the ABC Learning co-founder Le Neve Groves, is suing him and margin lenders for $64 million over the sale of her ABC Learning shares to meet a margin call.
Mr Groves's former brother-in-law, and ABC Learning business associate, Frank Zullo, is suing him to recover $7.3 million. Mr Groves is suing his broker Austock for allegedly failing to sell his stake in the company early in 2008.
In the aftermath of the multibillion-dollar collapse of ABC Learning Mr Groves has been the subject of extensive Federal Court examinations by ABC Learning's liquidators and receivers this year.
Last month ABC Learning's receivers questioned Mr Groves over his decision to pay $70 million for a childcare staffing company the day before he was sacked. Mr Groves denied allegations he paid an inflated sum for 123 Group in order to hide its debts with ABC.
Less than a month after the purchase was announced, ABC Learning's new management team pulled out of the deal. ABC Learning had already paid between $50 million and $60 million by the time it stopped the sale.
-reprinted from the Sydney Morning Herald