Australia

Appointment type:

Joint and Several Receivers and Managers
Joint and Several Liquidators

Appointment dates:

25 February 2010
4 March 2010
30 July 2010
13 May 2011

4 November 2011

Entities in receivership:

Letten Schemes

Letten Companies

Additional Letten Schemes & Companies

Entities in liquidation:

Letten Companies: 13 May 2011

Letten Companies: 4 Nov 2011

ACN: Refer to schedule 

Appointees:

Damian Templeton &
Philip Hennessy 

Office: Melbourne

Hotline: 
Australia: 1800 882 944 
International: +61 3 9838 4238

Contact email: lettenschemes@kpmg.com.au

 

 

Yarra Valley Golf Joint Venture 

Information for investors of the Yarra Valley Golf ("YVG") Joint Venture.

 

The Receivers have executed conditional contracts for the sale of the vast majority of YVG's assets following a robust sales process that was conducted in accordance with the requirements of the Court. This includes all aspects of the golf operations conducted by YVG and all undeveloped land located at the YVG complex.

 

Settlement of these assets occurred on 15 July 2011.

 

The sale was subject to approval of the Court which was granted by an Order dated 17 May 2011. Copies of the relevant Court documents, including the affidavits of the Receiver, Orders and reasons for judgement of 17 May 2011 are available.

 

In respect of the balance of assets and land owned by YVG the Receivers advise as follows:

 

Botanica Townhouses
In total 35 townhouses (numbered Lots 601-635 on Plan of Subdivision 415064K) were developed on the YVG site. As at the Appointment Date YVG had completed and settled the initial two stages of the Botanica development (17 townhouses numbered Lots 618 – 635) with the exception of two individual townhouses which failed to settle (Lots 625 and 626).

 

At the Appointment Date, the remaining Botanicas were at the following stages of completion:

 

  • Lots 601-610 – Construction was completed and the Occupancy Permits had been issued. We approached the Court in late March 2010 to request the power to settle and complete the sale of these properties in line with the pre-existing contracts.
  • Lots 611-618 – Construction was yet to be completed and no Occupancy Permit had been issued. We submitted a request to the Court in June 2010 to request funding from the secured lender to enable completion of the construction work, issuance of the Occupancy Permit and settlement and completion of the pre-existing contracts.

 

By Orders of the Court dated 31 March 2010 and 4 June 2010, we were granted the power to settle the Botanicas subject to pre-existing sale contracts (“the Pre-sold Properties”).

 

We confirm the following in relation to the Pre-sold Properties:

 

  • 14 of the properties were settled in accordance with their contract of sale; and
  • 4 properties did not settle and we remain in possession of the properties (“the Remaining Botanicas”).

 

On 5 August 2011 the Court granted us the power to sell the Remaining Botanicas and two additional Botanicas that were not subject to a sale contract on the Appointment Date (collectively “the Unsold Botanica Properties”). A copy of the Order is available for review through the secure data room.

The Unsold Botanica Properties will be marketed for sale by Fletchers and Philip Webb, who were selected as the most appropriate agents based on proposals submitted by four qualified sales agents.

An auction of two of the Unsold Botanica Properties took place on 8 October 2011. Both of these properties were passed in at auction. 

Since then we have sold and settled two of the Unsold Botanica Properties, with settlements occurring on 1 February 2012 and 30 March 2012 with a further settlement scheduled for 8 May 2012.

The Receivers have commenced the marketing of a further two Unsold Botanica Properties by private sale and will continue to review the strategy with regard to the realisation of the final Unsold Botanica Property. 

 

Investors will be updated on the progress of the above sale campaigns in due course, however, it is not anticipated the sale of the Unsold Botanica Properties will enable the YVG secured creditor to be repaid in full and no proceeds are expected to be available for creditors and Investors.

 

YVG – Henley Lots 6 & 7

The Receivers and Managers have completed on the sale of Lots 6 & 7 (parcel of residential land) which were subject to contracts of sale prior to our appointment.

The proceeds from these sales, less the relevant selling and associated costs were paid to the secured creditor.

 

YVG – Henley Lot 8
Settlement of the sale of Lot 8 occurred on 16 August 2011 which was subject to a contract of sale at the time of our appointment. The excess funds received from settlement were distributed to the secured creditor and were not sufficient to repay the secured debt.

 

Based on the sales price achieved to date and information currently available, the impact on stakeholders is:

 

  • Employees – All employees will be offered positions with the purchaser who will accept responsibility for all employee entitlements.
  • Receivership funding – The secured lender has provided substantial facilities to enable the business to continue to trade during the receivership period. This funding is expected to be repaid in full.
  • Secured debt – Insufficient funds will be realised on the sale to repay the debt owed to the secured creditor plus default interest and accounting and legal costs.
  • Unsecured creditors – As the secured creditor will not be repaid in full, there will be no funds available for valid trust claims by pre-receivership unsecured creditors.
  • Common pool for Investors – As the secured creditor will not be repaid in full, there will be no funds available to include in the common pool for Investors.

 

Related documents

 

Initial Funding Application

 

Second Funding Application