This article is from the Australian Property Journal archive
GOLD Coast property and financial services company City Pacific has collapsed after receivers and administrators failed to find a solution.
Yesterday the Federal Court in New South Wales ordered the wind up of City Pacific and appointed Armstrong Willy as liquidators.
City Pacific’s receiver and administrator PPB has asked all creditors and shareholders in City Pacific to direct their enquiries to the liquidator.
The demise of City Pacific ends an eight year life for the company as a publicly listed company.
Listed in May 2001, the company was started by Phil Sullivan. He founded City Pacific almost 12 years ago.
However the global credit crunch forced Sullivan to step down as managing director of the company.
And earlier last month, City Pacific’s fate was sealed when it was not able convince shareholders to keep the company as the manager of the $1 billion City Pacific First Mortgage Fund. Instead investors in the FMF voted to boot out City Pacific in favour of a new manager, Balmain Trilogy.
And late last month, Gold Coast property developer Craig Perry sued City Pacific in the Queensland Supreme Court for $25 million in damages.
Craig Perry’s company Foresight Acquisitions is partner with City Pacific to develop the Pacific Beach site on the Gold Coast. The 11.3ha on Old Burleigh Road site had been earmarked for a $600 million project including two residential towers and two low-rise apartments as well as a lagoon.
However the project is highly unlikely to process as City Pacific after receivers and managers PPB were appointed to takeover the company.
Perry is also seeking an injunction restraining City Pacific from selling the site and development.
Australian Property Journal
