Information for investors of The Glen Centre Joint Venture.
As previously advised the sale of this property has settled. It was sold via an expression of interest process in line with the requirements of the Court for an amount which was substantially in excess of valuation.
Based on the sales price achieved, the impact on stakeholders is:
- Receivership funding – The secured lender provided facilities during the receivership period. These facilities were repaid in full.
- Secured debt – The secured debt together with the default interest and the legal and accounting costs of the secured lender have been repaid in full.
- Unsecured creditors – As the secured creditor has been repaid in full, there will be funds available for valid trust claims against the Trustee of the relevant trust by pre-receivership unsecured creditors. Based on the information held to date, these claims are expected to be paid in full.
- Common pool for Investors – As a surplus is expected after payment of unsecured creditor claims, there is expected to be funds available to included in the common pool for Investors in accordance with the pooling Orders made by the Court.
The Liquidators previously notified all known and potential creditors of The Glen Centre Hawthorn Pty Ltd (Receivers and Managers Appointed) (In Liquidation) of their intention to declare a dividend on 28 July 2011. During the proof of debt process claims were received from parties that the Liquidators consider may not be proper trust creditors.
The Liquidators are uncertain of the validity of these claims. Further, the Liquidators have been unable to obtain certainty regarding the company’s ability to rely on the indemnity from the trust assets. In order to resolve these issues, directions from the Court are required to be sought.
A hearing date has been set for 4 November 2011. Accordingly, the payment of the first and final dividend that was intended to be declared and paid on 28 July 2011 has been deferred pending the outcome of the hearing. The proposed interim dividend to Investors is on hold pending the outcome of the aforementioned Court hearing.
A copy of the circular sent to creditors of the Glen Centre is available for review.