Deposit Power, another Australian CBL offshoot, has collapsed and potentially left an estimated 10,000 residential, commercial property buyers and investors in the lurch over about $300 million worth of deposit bonds for current - and pending - deals.

The bonds were sold to individuals, first-time home buyers, retirees, self-employed borrowers, trusts, corporate entities, or self managed super funds purchasing commercial or residential property. The bond is a form of insurance that 'guarantees' the deposit will be paid.

CBL has yet to inform liquidators, Chifley Advisory, whether it will fully, or partially, back the bonds that were used as interim finance by property buyers to cover deposits. Deposit Power is not answering telephone calls and its Sydney-based headquarters is closed.

Major mortgage brokers, such as Aussie Home Loans, which is owned by Commonwealth Bank of Australia, said it is helping clients find alternative funding. Australian Finance Group and Mortgage Choice, which are other major mortgage brokers, also said few of its borrowers are involved.

Industry award-winning Deposit Power was on the product panel of most of the leading mortgage brokerages and aggregators, which is typically considered a guarantee of quality and service.

In New Zealand, liquidators are warning holders of the bonds to seek advice on whether they need to buy other cover or secure additional, or replacement financial risk cover.

Chifley Advisory administrator Henry Kwok said the failure of the New Zealand parent to provide information about the liquidation was frustrating attempts to sell the business.

Mr Pfitzer, for Assetinsure, said talks with new equity partners were well advanced and that he expected to be able to announce a deal soon – without providing details on parties or timing.


"For us it is business as usual," he said. "Assetinsure is independently authorised and regulated by the Australian Prudential Regulation Authority. Its capital requirements are different to those of CBL Group companies and Assetinsure has limited exposure to one New Zealand-domiciled company through some reinsurance."

Assetinsure provides a range of speciality products including credit risk enhancement, surety bonds, specialised property insurance and rural risk cover. According to the 2016 annual report, it contributed about 12 per cent of the the group's insurance revenues, the third largest generator behind CBL Insurance and CBL Insurance Europe.

Assetinsure generates revenues through premium income and was 100 per cent owned by the corporation. It was acquired by CBL in September 2015 and non-core operations, such as a general aviation business, were sold.

CBL Corporation, which was listed in Australia and New Zealand, is the parent of the group and earned investment income and dividends paid up through the group. It did not trade on its own account. It opened an office in Sydney in January 2017.