ABC Learning chief to have assets frozen

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SYDNEY - 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 yesterday, John Halley, for the Australian Securities and Investments Commission (ASIC), said the commission contended the company was the "alter ego" of Groves.

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

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

The ABC group went into receivership last November with debts of more than A$1.5 billion ($1.86 billion).

Halley told Justice Kevin Lindgren yesterday that ASIC had reached agreements with Groves, Collins-Rubie and Zullo for their assets to be frozen.

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

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

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

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

Answering the judge, the lawyer said the beneficiaries of the trust were "the family of 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, ASIC wants an undertaking to be made in relation to the company's assets.

- AAP