After taking over management of Advanced Medical Institute Pty. Ltd., the administrators hope to turn things around for the company that specializes in helping patients with sexual dysfunction.

However, plans of the joint administrators from BDO Australia for Advanced Medical to exit administration with a stronger and long-lasting business hit another blow after the competition regulator has again set its sights against AMI.

The Australian Competition and Consumer Commission commenced legal action against the company for unconscionable conduct, after failing to inform customers that the business is insolvent and under administration. The ACCC wants the federal court to stop the Sydney, Australia-based firm from continuing its business.

Advanced Medical Institute's founder and major shareholder, Jack Vaisman, sent AMI into administration in December last year, following an expensive court case loss and an unsuccessful expansion into Britain. Trent Hancock and Michael Hird, of BDO Australia, were appointed as joint voluntary administrators for AMI and an affiliate by Life Science Group Pty Ltd, a secured creditor. Following administration, AMI, which has $50 million in debts, could either emerge as a revitalized business or it could dissolve.

The ACCC says AMI has failed to advise existing and potential patients that it is in administration, is insolvent and may not be able to provide goods and services after determination of the administration period. It wants AMI enjoined from signing new contracts with customers after July 20.

"The ACCC further alleges that AMI has wrongly accepted payments in advance for treatments when there is a real risk that AMI will not be able to continue to supply its treatments to patients and that patients will not receive refunds claimed by them, after the conclusion of its administration," the ACCC says.

BDO Australia's plans from AMI appear to be business as usual following exit from administration. After its entry into administration, BDO-managed AMI continued selling treatment programs lasting up to 18 months. The company's Web site, , which offers "faster acting and lower dosage treatments" to people suffering from impotence and premature ejaculation, continues to be up and running.

BDO's Laurie Fitzgerald has said in court filings that ACCC's legal action should be denied. She said that AMI's business is legitimate but ACCC just doesn't like the business. She insists that AMI is not required to advertise the insolvency in the website and customers are not at risk of losing their money as the business is poised to continue.

The dispute though could be at the hands of the judge. The federal court is scheduled to hear June 10, Friday, ACCC's request to enjoin AMI from taking on new contracts after July 20.

Formed by Jacov Vaisman, AMI is a service provider company that arranges for patients with sexual dysfunction to be providedWith medical services, pharmaceuticals and associated support services. It boasts that unlike its competitors, its treats each patient "individually and over the long term." Its treatment program lasts 3 to 24 months. AMI said it uses both existing drug products with known safety and efficacy and "new methods of treatment and delivery systems".

Aside from the ACCC, a group calling themselves Advanced Medical Institute Organisation has lobbied against AMI and its "deceitful and controversial antics." The group doubts the effectiveness of AMI's treatments. It says the nasal spray for erectile dysfunction patented by Mr. Vaisman contained apomorphine, which was not as effective as pills like Viagra, Cialis and Levitra. It also notes that AMI's treatments costs $350 - $3000 and are not 100% guaranteed to work. The motives of the organization though is highly suspect. The group also sells products for the treatment of erectile dysfunction.