13 Dec Property Developer

Capability: Insolvency

Industry: Property

Appointment: Receivership – Working with secured (private) lenders

Overview

The company in property development was unable to repay its secured lender a loan in excess of $40m and the loan was in default.

The property development was completed but occupation certificate (OC) was not obtained. There was residual stock of 10 apartments and another 10 apartments were transferred to related entities.

Challenges

Needed various certificate to satisfy the Private Certifying Authority (PCA) that the conditions are met.

There were missing certificates from the builder and various stakeholders that were required for OC.

The transfer of the properties to related parties were uncommercial and defeating creditors interest that needed to be recovered for the benefit of the company’s creditors.

Some of the apartments were tenanted by purchasers that did not obtain clear title.

Solution

Re-engaged with various subcontractors to obtain the necessary certification in order to obtain OC from the PCA.

Made an urgent application to NSW Supreme Court to overturn the sale of the properties to related entities for no or nominal consideration.

Made applications to evicted tenants to obtain possession and realise the apartments.

Commenced a structured sell down of the apartments with a local agent while initiating legal proceedings for various recovery actions.