Sequoia Financial Group (ASX:SEQ) confirmed the Australian Securities and Investments Commission (ASIC) began court proceedings to seek the appointment of a receiver over certain property of InterPrac Financial Planning, namely the guarantees in the ASIC cross deed of guarantee which Sequoia, InterPrac, and the other Sequoia group companies are party, according to a Friday Australian bourse filing.

The company plans to divest InterPrac to Conquest Investment Partners. ASIC said on Wednesday that it plans to appoint a receiver to InterPrac to investigate the proposed sale of InterPrac. Sequoia noted that the regulator stated that it has a concern that the proposed sale of InterPrac may adversely affect the interests of InterPrac's creditors. The company said it believes such a concern was unfounded.

The court proceeding seeks to secure those guarantees so that the receiver can prepare a report for the regulator as to whether the sale of InterPrac to Conquest announced on March 23 is a "bona fide sale and whether the consideration for the sale is fair and reasonable" within the meaning of the ASIC cross deed of guarantee. The receiver will also report on the financial position and solvency of InterPrac, per the filing.

InterPrac will remain a party to the ASIC cross deed of guarantee immediately following the sale of InterPrac to Conquest. Seqouia continues to engage with ASX regarding whether shareholder approval is required for the sale of InterPrac.

Sequoia Financial Group's shares tumbled 9% in recent Friday trade.