The Australian Securities and Investments Commission (ASIC) has obtained orders from the Supreme Court of New South Wales that 10 property development companies be wound up on the ground that they are insolvent.
Mr Max Christopher Donnelly, of Ferrier Hodgson, has been appointed as liquidator to:
- Oceanwalk Projects Pty Limited (Oceanwalk);
- Procorp Investments Pty Limited (Procorp) and its related companies:
- Bankstown Project Two Pty Limited;
- Great Northern Constructions Pty Limited;
- Liverpool Projects Limited;
- Mansions on Mann Limited;
- Miranda Villas Pty Limited;
- Northern Sight Pty Limited; and
- Procorp Investments (Gosford) Pty Limited; and
- Alliance Property Developments Limited (Alliance).
The affected companies consented to the orders.
The companies related to Procorp were special purpose companies, incorporated solely for the acquisition and development of six different real properties within New South Wales. Bankstown owned land in Five Dock, Great Northern owned land in Newport, Liverpool owned land in Liverpool, Mansions owned land on Mann Street in Gosford, Miranda owned land in Toongabbie and Northern Sight owned land in Ettalong.
ASIC sought the winding up orders and the appointment of a Liquidator after evidence filed by a director of Procorp raised concerns about the solvency of Procorp and its related companies. Similarly, evidence filed by a director of Oceanwalk raised concerns about the solvency of Oceanwalk.
At this stage, the Court has not made orders to wind up any other defendant company. However, ASIC has applied to the Court to wind up all defendant companies in the proceedings.
The matter is back before the Court on Monday 8 March 2004 for the Court to:
- determine ASICs application to wind up 3 other companies related to Procorp: Drummoyne Constructions Pty Limited, Homebush Project One Pty Limited and Zepher Pty Limited; and
- make directions as to the conduct of the proceedings in relation to the remaining defendant companies and persons.
Background
On 15 October 2003, ASIC obtained orders, without admissions, from the Supreme Court of New South Wales freezing the assets of Oceanwalk, Procorp, Mr Donald Richard Maxwell, Mr Malcolm Fortune, Central Development Group Pty Limited (Central Development), and 12 other related companies. Similar orders were subsequently obtained against Northern Sight Pty Limited.
The orders also restrained some of the parties from dealing with assets received from investors.
On 3 November 2003, following an application by ASIC, Mr Jim Kolios, a director of Central Development undertook not to manage corporations until further order from the Court.
ASIC’s action followed investigations into alleged illegal fundraising of $11 million from over 100 investors by various property development companies and its related companies.