CBA lodges $27m Storm Financial claim

Commonwealth Bank of Australia Ltd has lodged a $27.09 million debt claim at a
meeting of Storm Financial Ltd's creditors on Tuesday.
Administrators Worrells Solvency & Forensic Accountants of Brisbane could not
comment on the amount of funds that could be recovered through asset sales.
The financial planning company called in the administrators last Monday after the
Commonwealth Bank gave it one day to repay its debt.
"Total creditors of the group, excluding the Commonwealth Bank, totalled $51 million
plus a provision for dividends of $10 million," Worrells said in a statement.
"The creditors amount included $28.4 million recorded as owing to unpaid vendors of
business acquired by the group."
The administrators attributed an enormous drop in Storm's half year operating
revenue to the global market meltdown.
Storm earned only $12.3 million from upfront fees and trailing commissions in the
six months to December 2008 compared with $67.9 million during the year ended June
30, 2008.
Worrells said ongoing earnings reductions were expected and Storm's directors had
been unable to achieve any corresponding reduction in the company's operating costs.