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ASIC Move to Wind-up Failed Land Banking Scheme

Discussion in 'General Property Chat' started by House, 18th Nov, 2015.

  1. House

    House Well-Known Member Premium Member

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    No, nothing to do with Jamie McIntyre :p

    "The Australian Securities & Investment Commission (ASIC) has appealed to the Federal Court of Australia to allow it to move to wind-up a failed Victorian land banking company.

    Midland Hwy Pty Ltd was the developer behind the Hermitage Bendigo land banking scheme in Victoria and was placed into administration on 2 July 2015.

    The appointed administrators recommended that Midland Hwy Pty Ltd be put into liquidation, but the company’s creditors voted to enter into a deed of company arrangement (DOCA).

    Under the DOCA, Bilkurra Investments Pty Ltd, the owners of the land at the centre of the scheme, were to take over that development, but ASIC has appealed to the Federal Court to have that agreement put aside.

    In a statement, the regulator claimed that winding up Midland Hwy Pty Ltd would allow for a full investigation into the failed venture.

    “ASIC considers that it is in the public interest for Midland Hwy to be wound up so that a proper investigation into the affairs of Midland Hwy can be conducted by independent liquidators,” the statement said.

    ASIC’s decision to launch court proceedings was also spurred on by matters reported to it by the former administrators of Midland Hwy Pty Ltd.

    According to the administrators, Midland Hwy Pty Ltd had raised $24 million from investors, but only $1.7 million of that had been put towards the Hermitage Bendigo project and it is unlikely the company has the funds to pay the $24 million back to option holders and is likely to have been insolvent from March 2012 and potentially as early as 7 September 2011.

    The administrators also told ASIC that $22.3 million of payments are likely to be subject to other claims which should be investigated by liquidators to see if they can be recovered, including substantial amounts paid to companies associated with Bilkurra Investments Pty Ltd for which there is no proper documentation.

    There are also concerns whether Bilkurra Investments Pty Ltd has the funds required to complete the development."

    YIP mobile
     
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  2. C-mac

    C-mac Well-Known Member

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    Thanks for sharing this @AlexH and nice meeting you the other night, too!
     
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  3. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Ouch ouch ouch
     
  4. House

    House Well-Known Member Premium Member

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    Likewise. Already looking forward to the next gathering!
     
  5. LifesGood

    LifesGood Home Building & Development Consultant Business Member

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    Horrible. What'd they do with all the cash!?