The Australian operation of claims firm Stream Group has put itself into voluntary administration following problems raising funds and extending a key client contract with RACQ Insurance.
At least 70 stream staff in Queensland and five in Melbourne were told their positions were terminated this week.
However, Group CEO Gavin Dixon was keen to stress that the voluntary administration of Stream Group Australia was ‘not expected to affect Stream’s businesses in New Zealand or the UK.
“The New Zealand company of Stream Group has operated autonomously and profitably for a number of years and will continue to do so under the governance of the New Zealand Board,” he told Insurance Business.
“The New Zealand company is a standalone entity, functions autonomously and is cash flow positive, and the Board and senior executive have confidence that the current successes will continue.”
In an earlier statement to the ASX, the company advised that Stream Group director and founder Don McKenzie had resigned and the directors thanked him for his strong commitment over the years.
The statement also said: “The Board is assessing any funding requirements for the remaining business and will provide an update on this over the coming days and intends for the voluntary suspension of its securities to be lifted at that time.”
This suspension was to allow for Stream to work through a process of capital raising.
