Eddy Groves in bitter $64 million divorce battle

Fallen ABC Learning Centres chief Eddy Groves is locked in a bitter divorce battle with ex-wife Le Neve Groves, who is suing her former husband and two financial services firms for $64.2 million.

Fallen ABC Learning Centres chief Eddy Groves is locked in a bitter divorce battle with ex-wife Le Neve Groves, who is suing her former husband and two financial services firms for $64.2 million.

While Eddy and Le Neve have been separated for some years, the couple has maintained the pretence of being husband and wife for the sake of the business.

But following the pair’s resignation from ABC Learning, Le Neve has lodged a claim in Queensland’s Supreme Court against Eddy, and two firms the couple had margin lending agreements with, Citigroup and BT Financial.

Groves claimed in an interview with Business Spectator in March that the ABC shares covered by margin loans had been sold without his knowledge when ABC’s share price dived by almost 70% on 26 February.

A Citigroup spokesman says it will “vigorously defend” the claim.

Groves told Queensland’s Sunday Mail newspaper that he was disappointed the battle had spilled over into the public arena.

“I am surprised because it’s something that can be worked out privately. I really don’t want to get into it… I just want to respect how my children feel about all this.”

When asked whether he had the $44.2 million his wife is claiming from him, Groves said: “She must have thought I’d found that rainbow with the pot of gold at the end of it. I think it’s been fairly widely written about what has happened… it’s disappointing.”

News of the divorce battle came after Friday’s announcement that ABC Learning missed its deadline to release its 2007-08 results by the end of October. The release of the results has been delayed by ABC’s new auditor Ernst & Young, which is also reviewing the company’s accounts for the previous three years.

ABC was not able to say when the accounts will be released.

Related stories:

• Why ABC Learning boss Eddy Groves had to go
• Eddy Groves tells: Success has nothing to do with wealth