Liquidators of Mercedes Group, trading as Zorzi Builders, have sought details on an $1.8 million property sale in Claremont as they comb through related assets and liabilities.
Liquidators of Mercedes Group, trading as Zorzi Builders, have sought details on an $1.8 million property sale in Claremont as they comb through related assets and liabilities.
Hall Chadwick liquidators Richard Albarran, Cameron Shaw and Aaron Dominish, succeeded in their court bid to push Lascia Pty Ltd to provide outstanding mortgage value of properties on Bay Road in Claremont and on Geographe Bay Road in Quindalup.
Both properties were, until recently, owned by Lascia and are linked to assets owned by Zorzi boss David Reynolds and Jane Reynolds, according to a recent Federal Court judgment.
The Federal Court of Australia yesterday ordered Lascia to provide the necessary information and documentation to the liquidators, who are managing the collapsed Mercedes Group and Inka Builders, by September 22.
The liquidators started legal action against Mr Reynolds, Nicola D’Eercole, Tomasz Kaminski and Lascia Pty Ltd in the Federal Court.
Australian Securities and Investments Commission records list Ms Reynolds as the sole owner and director of Lascia.
A court judgment delivered by Federal Court judge Michael Feutrill earlier this month revealed Mr Reynolds’ assets and liabilities were mixed with Ms Reynolds’, with their net asset position estimated to be $60 million.
“Disposal or dissipation of assets of that value within the jurisdiction would require significant effort and ingenuity,” Justice Feutrill said.
RP data shows the Claremont property was sold by Lascia for $1.81 million in May.
Speaking to the court yesterday, Federal Court judge Darren Jackson said Ms Reynolds seemingly had an interest in understanding what happened to the money from the Claremont property, which may be related to the Quindalup asset.
Mercedes Group, trading as Zorzi Builders, was placed in administration in March and in liquidation in June.
Mr Reynolds and Lascia made a deed of guarantee and indemnity in April, with the latter granted a security interest over the title and interest in the Bay Road property in Claremont, according to Justice Feutrill's judgment.
“Lascia acknowledged and agreed to the liquidators (administrators) lodging a caveat over 41A Bay Road as result of the security interest,” Justice Feutrill said.
“The liquidators (administrators) evidently lodged a caveat over that land.”
A month after the deed of guarantee was made, Lascia entered into a contract to sell the Claremont property but did not provide a replacement security, according to the judgment.
“It appears that negotiations for the provision of replacement security have not been fruitful,” Justice Feutrill said.
“Given that the liquidators withdrew their caveat without an agreement regarding replacement security, a genuine fear on the part of the liquidators that Lascia will dissipate its assets to avoid its legal obligations is hard to credit.”
According to the judgment, Mr Reynolds said no action would be taken to sell, transfer or deal with assets of Chadston Trust, in which Lascia is evidently a trustee of.
The judgment shows Chadston Trust is the registered proprietor of a Quindalup property that was listed for sale in June but has since been delisted.
In his judgment, Justice Feutrill said there seemed to be no intention from Lascia to dispose the Quindalup site.
Earlier this month, the liquidators also sought freezing orders for Lascia Pty Ltd to dissipate proceeds from the sale of the Claremont property.
While refused, the Federal Court granted an interim injunction to restrain Lascia.
