An Australian court has placed 12 companies linked to Edwards into provisional liquidation after the Australian Securities and Investments Commission (ASIC) alleged serious concerns over their operations and treatment of investor funds. The companies collectively raised A$182 million (about $130.5 million) from investors, according to court records.
The New South Wales Supreme Court appointed Kathryn Evans and Vaughan Strawbridge of FTI Consulting as joint and several provisional liquidators on Friday. The order hands control of the 12 companies to outside administrators and is not a final winding-up decision. ASIC’s application to wind up the companies remains before the court, with the proceeding scheduled to return on 2 November for directions.
The judgment found that, except for Great Northern Phoenix, the companies raised money from members of the public. Most funds were obtained through loan or joint venture agreements, while Ironbark Holdings raised money by selling lots in undeveloped land. Six non-trading entities received investor funds and then advanced them to property development companies controlled by Edwards.
The court accepted ASIC’s submission that payments to investors largely came from money provided by new investors or from borrowings on unknown terms, rather than from income generated by the companies. Justice Nixon stated that the 12 companies had operated “casually and without due regard to legal requirements,” citing gaps in financial records, repeated failures to provide required reports and uncertainty over whether the companies could meet their obligations to investors.
The companies opposed ASIC’s application. They argued that property development businesses do not ordinarily generate income while projects are under construction and proposed undertakings that would restrict new fundraising, asset disposals and additional debt without ASIC’s consent. The court rejected this alternative, finding that the undertakings would leave Edwards in control and would rely on records the judge considered incomplete and unreliable.
One discrepancy highlighted in the judgment concerned land for the proposed Gunnedah solar project. Ironbark Holdings’ unaudited June 2026 balance sheet valued the site at A$83.97 million, while unchallenged valuation evidence called by ASIC put the value at A$6 million.
Evans and Strawbridge have also been appointed receivers and managers over assets held by Great Northern Morayfield as trustee for the Deckchair Trust. The provisional liquidators must report within 10 weeks on the companies’ assets, liabilities, recoverability of assets, likely solvency and estimated returns to creditors if the companies are ultimately wound up. Their mandate also includes examining suspected breaches of the Corporations Act or ASIC Act and identifying transactions that may warrant further investigation.
ASIC’s investigation into Edwards began in 2021, and officers executed search warrants at his business premises in December 2022. In September 2025, ASIC banned Edwards for 10 years after finding that he carried on an unlicensed financial services business, including recommending investments in companies he controlled. He has asked the Administrative Review Tribunal to review that decision. ASIC also disqualified Edwards from auditing self-managed superannuation funds in May.
The court noted that Edwards and the companies had challenged ASIC’s concerns through affidavits and submissions. Nonetheless, it found a reasonable prospect that ASIC would obtain a final winding-up order on just and equitable grounds. Separately, ASIC is pursuing similar court action against Capital Guard AU, alleging it raised A$17.4 million for bonds that may not have existed.
