Eddy Groves agrees to assets freeze

30th June 2009

FAILED ABC Learning Centres tycoon Eddy Groves has agreed to a freeze on his assets, but the corporate watchdog still has concerns.

Failed ABC Learning boss Eddy Groves.

AAP

Failed ABC Learning Centres tycoon Eddy Groves has agreed to a freeze on his assets, but the corporate watchdog has concerns over a company whose sole director is his new wife.

In the Federal Court on Tuesday, John Halley, for the Australian Securities and Investments Commission (ASIC), said the commission contended the company was the "alter ego" of Mr Groves.

He said the company, Perfection Too, recently made two property transfers including the Queensland Currumbin Valley residence of Mr Groves, his wife Viryan Collins-Rubie and their children.

The property has been transferred to Mr Groves' former brother-in-law Frank Zullo.

The ABC group went into receivership in November 2008 with debts of more than $1.5 billion.

Justice Kevin Lindgren was due to hear on Tuesday an application by ASIC to have Mr Groves' assets frozen.

Mr Halley told the judge that ASIC had reached agreements with Mr Groves, Ms Collins-Rubie and Mr Zullo for their assets to be frozen.

But he said there was an issue in relation to Perfection Too, a trust company of which Ms Collins-Rubie was the sole director.

He said Mr Groves' undertaking did not extend to the assets of this company, which Mr Groves said were not his.

But Mr Halley said ASIC contended "a very significant portion" of Mr Groves' assets "are held pursuant to the terms of the trust".

Ms Collins-Rubie's lawyer said he had no instructions from Perfection Too, only from Ms Collins-Rubie in her personal capacity.

In answer to a question from the judge, the lawyer said the beneficiaries of the trust were "the family of Mr Groves including several children, and that is all I really know".

Justice Lindgren listed the Perfection Too issue for hearing on July 27 and 28.

Until a decision is made on that issue, ASIC wants an undertaking to be made in relation to the company's assets.

The judge will consider the matter later on Tuesday.