AGL weighs bid for Forum Group solar firm Autonomous Energy
AGL is weighing a bid for solar firm Autonomous Energy, which is part of the Forum Finance entities forced into administration due to fraud allegations.
Energy giant AGL is weighing a bid for solar firm Autonomous Energy, which is part of the Forum Finance entities that were forced into administration due to serious fraud allegations.
The Australian understands AGL is among more than 10 interested parties that have started due diligence on Autonomous Energy. The administrator of a large group of Forum entities, including Autonomous Energy, McGrathNicol is running a sale process for the solar company.
The quick-fire auction is also expected to attract a management buyout proposal and will likely wrap up swiftly, ahead of a second creditors’ meeting on August 12.
An AGL spokeswoman declined to comment.
The energy company’s interest in Autonomous Energy follows its bigger push into solar in March, when AGL agreed to acquire two of Australia’s largest commercial solar businesses, Epho and Solgen Energy Group. At the time, AGL said the acquisitions would see it become the largest commercial solar provider in Australia.
Autonomous Energy is, though, entangled in the Forum Group equipment leasing fiasco. There are three banks separately pursuing the entities and their founder and soccer identity Bill Papas in the courts relating to exposures of about $400m.
Westpac says its exposure to the alleged fraud amounts to about $294m. The parties are back in the Federal Court on Wednesday, as Westpac continues to ask Judge Michael Lee why Mr Papas has not complied with his orders to disclose his assets in an affidavit.
Mr Papas’s assets and those of fellow Forum director Vincenzo Tesoriero are subject to local and global freezing orders, as the matter is heard in court.
Earlier this month, Justice Lee took a swipe at Mr Papas in a case management hearing for not adhering to court orders, as it was also revealed he had tested positive to Covid-19 in Greece and was unable to return to Australia.
“I don’t make orders on the basis that they can be treated like traffic lights in Athens, I want them complied with,” Justice Lee said.
Autonomous Energy – which was acquired by the Iugis entity within Forum earlier this year – has the advantage of being new to the broader stable, meaning the company’s systems were not merged with those of the acquiring group.
Autonomous Energy’s projects include working with Lend Lease on a solar car park shading system at Sunshine Plaza Shopping Centre in Queensland.
The company has also done work for Westpac, installing more than 7000 solar panels across two buildings in Sydney and Adelaide.
Another Forum entity was essentially sold last week as part of the administration process. That was the sale of part of the Forum Group equipment leasing entity to Our Kloud – which is led by Eric Constantinidis – a relative of Mr Papas.
McGrathNicol and the Federal Court will look closely at one particular Forum entity as they seek to get to the bottom of the allegations and the money trail.
The alleged fraud – which includes claims of forged signatures and missing goods – is believed to have seen money funnelled through Forum Group Financial Services.
That entity was headed by Mr Papas and previously by Mr Tesoriero, with the latter resigning from Forum Group Financial Services in April 2020.
Westpac’s court documents claim the entity was transferred money on at least 100 occasions with the funds then dispersed to “other persons” including those “not currently known to Westpac”.
Forum Group Financial Services was caught up in the administration process instigated by Mr Papas.
Westpac alleges Forum Group Financial Services “was used as the central repository from early 2019 of the funds that were defrauded from Westpac”.
“Westpac is not currently able to identify all of the amounts that Mr Papas has received but has currently identified that Mr Papas was himself paid $2.35m by FGFS,” the bank said in court filings.
“Mr Papas has received the benefit of in excess of $15m paid by Westpac pursuant to transactions 1 to 100 and paid (after intermediate payments) by FGFS.”
However, unlike many other Forum entities Forum Group Financial Services – registered in late 2017 – was not audited by the company’s main auditors Rothsay.
Pacific Blue Tax Services completed Forum Group Financial Services’ first tax filings in 2018.
The Melbourne-based Pacific Blue’s boss Luigi Stefanetti said he had not done any work for Forum Group Financial Services since.
“Apparently all this started on or around September ’18 (2018),” he added.
Mr Stefanetti said he had no involvement in setting up the entity and did not hold any books nor records.
“I was provided with some information. I lodged a return, I did that, that’s all my involvement was with Forum Group Financial Services.”
Mr Stefanetti said he did not act for Mr Papas, but had acted for Mr Tesoriero “for over 10 years”.
