Steller directors to repay $ 90 million loan

0

In a statement, Mr Smedley said he fully appreciates the steps OCP is taking to protect its position.

“We are in talks with OCP regarding its position as a major creditor and we hope to reach an amicable result as soon as possible,” he said.

Personal guarantees

Mr. Cirelli and Mr. Williams declined to comment. OCP did not respond to a request for comment.

According to the writ, all three defendants are current or former directors of Steller companies and have provided personal guarantees to secure funding from OCP.

Steller began to fall apart in May 2019 when Mr Smedley and Mr Pitard decided to end their business partnership and projects such as the redevelopment of the Conti Hotel in Sorrento were abruptly halted.

In July of the same year, OCP appointed McGrathNicol as receiver of Steller Pty Ltd and more than a dozen related entities, taking control of several development sites in Melbourne.

At the same time, another Steller backer, fund manager Atlas Advisors, took possession of 16 properties – mostly development sites in Melbourne – as it too sought to protect its position.

In October last year, in response to a demand that he and other directors repay the $ 121 million demanded by Atlas Advisors, Mr Smedley said the alleged personal guarantees signed by him and three other directors were a ” fraud “and that he had” no recollection of having executed the alleged guarantee “.

A spokeswoman for Atlas said she had no comment “at the moment”.

In addition to OCP and Atlas debts, 71 private investors are unsecured creditors of Steller Property Funds and three other fund management entities, all in liquidation. These investors have filed claims totaling nearly $ 80 million.

The OCP writ shows that the original payment claim made against Mr Smedley was $ 139 million in July 2019,

This amount decreased over time as OCP recovered funds through the sale of Steller’s real estate assets.

Share.

Comments are closed.