The Federal Court of Australia has got orders to set aside a resolution created by lenders of Midland Hwy Pty Ltd ACN 153 096 069 (administrators appointed) (Midland Hwy) on 21 October 2015 to enter into a deed of company arrangement (DOCA) and for Midland Hwy to be wound up. Bilkurra Investments Pty Ltd. had proposed the DOCA.
Craig Crosbie of PPB Advisory and Nicholas Martin have been made as the liquidators of Midland Hwy.
ASIC sought the wind up orders as it considered it in the public interest to get an effective investigation to the matters of Midland Hwy to be run by independent liquidators (attribute: 15 338MR).
In his ruling, his Honour Justice Beach discovered the public interest demanded the winding up of Midland HWY, “especially where there isn’t any goal for just about any area of the company of Midland to be salvaged.
His Honour said: ‘There is not anything concerning the financial position or standing that might give me or the alternative holders any assurance the job will carry on to finish of Bilkurra. Furthermore, the job seems to now be in the control of things and individuals implicated in the trades under which $24 million of option holders’ funds are siphoned off in shadowy situation and through the usage of phantom like corporate constructions. ‘
ASIC Commissioner Greg Tanzer said that: ‘This result illustrates the dedication to ensuring that DOCA organizations proposed to be entered into under the Act of ASIC usually are not used as a way in order to avoid examination and appropriate investigation by individuals that are independent.
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Midland Hwy was the programmer of a land banking scheme called ‘Hermitage Bendigo’ (previously ‘Acacia Banks’), situated just outside of Bendigo, Victoria and was put in government on 2 July 2015. In the second creditors’ assembly of Midland Hwy held on 21 lenders voted despite the Administrators advocating the business be placed into liquidation.
ASIC commenced proceedings in the Federal Court to set aside the DOCA on 23 October 2015 (attribute: 15 338MR).
ASIC’s proceedings are a part of ASIC’s more extensive and on-going investigation into land banking schemes (attribute: 15 214MR).
ASIC formerly concluded proceeding against Midland Hwy to remove Mr David Anthony Ross and Mr Richard Albarran of Hall Chadwick as the administrators (send: 15-203MR).