The Australian Securities and Investments Commission (ASIC) has obtained further orders from the Supreme Court of New South Wales against three property development companies associated with Procorp Investments Pty Limited (Procorp).
Mr Max Christopher Donnelly, of Ferrier Hodgson, has been was appointed as liquidator to Zepher Pty Limited and provisional liquidator to Homebush Project One Pty Limited and Drummoyne Constructions Pty Limited.
Zepher consented to the orders, but the making of the orders was contested by Homebush Project One and Drummoyne Constructions.
These companies were special purpose companies, incorporated solely for the acquisition and development of three different real properties within New South Wales. Drummoyne Constructions owned land at Soldiers Point, Homebush Project One owned land at Homebush and Zepher owned land at Crows Nest.
ASIC sought the appointment of Mr Donnelly as provisional liquidator or receiver and manager to the three companies after evidence filed by a director of Procorp raised concerns about the solvency of Procorp and its related companies.
The matter is back before the Court on Monday 22 March 2004 for the Court to determine whether a provisional liquidator should also be appointed to Central Development Group Pty Limited (Central Development) and its related companies.
Background
On 15 October 2003, ASIC obtained orders, without admissions, from the Supreme Court of New South Wales freezing the assets of Oceanwalk Projects Pty Limited (Oceanwalk), Procorp, Mr Donald Richard Maxwell, Mr Malcolm Fortune, 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.
On 3 March 2004, Mr Max Christopher Donnelly, of Ferrier Hodgson, was appointed as liquidator to:
- Oceanwalk;
- 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).
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.