An international student agency known as GrowPro Experience based in Spain has faced scrutiny after collapsing earlier this year, with liquidators suggesting it may have traded while insolvent for over a year. The agency’s liquidator, Joshua Taylor, estimated debts owed to creditors at over $2.74 million, including a substantial amount owed to the Australian Tax Office.
According to Taylor’s report to creditors, the agency had failed to deliver services to more than 1,100 student clients, resulting in claims totaling approximately $870,000. The report highlighted potential breaches in director duties and raised concerns about the company’s record-keeping practices and asset management.
GrowPro Experience attributed its downfall to various factors such as visa policy changes, declining student numbers, and visa refusals. However, Taylor noted that the company had been incurring trading losses since 2022, indicating deeper financial issues beyond external factors.
The liquidator’s investigation revealed significant amounts of money transferred overseas to affiliated entities, raising questions about the nature of these transactions. Taylor indicated that he was considering pursuing the company’s directors, Antonio Llobet and Paul Mansour, to recover funds and assess their personal financial liabilities.
While Mansour claimed minimal involvement in the company’s operations, Llobet was described as the driving force behind GrowPro. The report suggested that Llobet could face closer scrutiny due to his active role in managing the Australian entities.
Insolvency experts emphasized the potential legal consequences directors could face for allowing insolvent trading, highlighting the complexities and challenges involved in proving such allegations in court. They also pointed out that directors could use certain defences under the Corporations Act to mitigate their liability.
As the investigation unfolds, Taylor aims to determine the extent of recoverable actions against the directors and explore avenues for creditors to reclaim their losses. The liquidator’s efforts to trace assets and scrutinize financial transactions underscore the complexity of untangling the financial web surrounding GrowPro’s collapse.
In conclusion, the collapse of GrowPro Experience sheds light on the risks associated with international student agencies and underscores the importance of robust financial management and regulatory oversight in the education sector. The aftermath of the agency’s demise serves as a cautionary tale for students, creditors, and industry regulators about the potential pitfalls of dealing with financially unstable entities in the international education market.
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