This article is from the Australian Property Journal archive
THE administrators of failed Sydney-based property developer Ralan Group believe liquidation is the best outcome forward.
In a meeting of approximately 700 creditors this week to decide the future of the company, it was decided that a poll would be created after the option of liquidation for eight of the entities in the group and a Deed of Company Arrangement (DOCA) was proposed by the founder and director William O’Dwyer.
Grant Thornton’s administrator and national partner Said Jahani said based on its extensive investigation, liquidation is the correct path forward.
Last month released its report in the collapse of Ralan, finding elements of a Ponzi scheme and said the group has been insolvent for more than five years and owe creditors $564 million.
“We’re close to having a resolution on the future of the group and creditors are understandably very keen to understand what their options are. Question time is always the most intense part of any creditors’ meeting and whilst it can be very emotional we need to understand the difficult circumstances a lot of these families now find themselves in.
“Based on our extensive investigation we believe that liquidation is the correct path forward and will provide the best outcome for all parties. However, we anticipate a close vote which is why we have engaged an external third party to independently count and verify the votes,” Jahani said.
For a majority vote to pass two things need to happen, firstly more than 50% of the number of creditors at the meeting in person or by proxy need to vote in favour and secondly more than 50% of the value owed in dollars from those voting need to vote in favour.
If one but not both resolutions are passed, the chairman – Said Jahani – will have the casting vote. A meeting has been reconvened on Tuesday, 17 December at 2.00pm to announce the result of the poll.
