02/12/2021 - 13:23

Caratti, Bazzo face new lawsuit over $948k 'debt'

02/12/2021 - 13:23

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Inglewood-based consultancy Reliance Finance is chasing property mogul Allen Caratti and his partner Tina Bazzo for almost $1 million over a loan allegedly issued more than seven years ago.

Caratti, Bazzo face new lawsuit over $948k 'debt'
According to the Supreme Court writ, Reliance Finance has accused Mr Caratti and Ms Bazzo of failing to pay the balance on the $6 million loan.

Inglewood-based consultancy Reliance Finance is chasing property mogul Allen Caratti and his partner Tina Bazzo for almost $1 million over a loan allegedly issued more than seven years ago.

Mr Caratti - one of the state’s biggest land owners - and Ms Bazzo spearheaded two trading entities that have been the subject of a decade-long investigation by the Australian Taxation Office.

GH1, which previously operated as Gucce Holdings under director Ms Bazzo, held most of the group’s land for development until it collapsed in 2017, while Mr Caratti served as director of MNWA, which conducted much of the development work.

The two entities are now in liquidation, with the liabilities of the eight Caratti-Bazzo companies in liquidation estimated to be more than $310 million.

According to a writ lodged in the Supreme Court this week, Walthamstow, which trades under the name Reliance Finance, has accused Mr Caratti and Ms Bazzo of failing to pay the outstanding balance on the $6 million loan.

In the writ, Reliance Finance claimed it entered into a 24-month loan agreement in October 2014 with Ms Bazzo, in her own right or as trustee of Gucce Family Trust, and Mr Caratti as guarantor.

Under the agreement, the company advanced Ms Bazzo $6 million, secured by a mortgage granted over five seizable parcels of land.

But Ms Bazzo sought to have the loan extended by one year to November 2017, before requesting that it be extended twice more until November 2019.

Meanwhile, the mortgaged properties were subdivided between November 2014 and July 2021, resulting in subdivided lots being sold and the proceeds of the sales being allocated towards early payment of the outstanding amount.

Between 2018 and July 2021, Reliance Finance claims it received various payments towards the outstanding amount at the direction of Mr Caratti, with 21 payments of between $116,000 and $1,600. 

But the company alleges there was still $894,447 owing on the loan, and by September 2021, it issued notices to both parties demanding payment.

It sent a second letter to the pair the following month, warning that if the debt wasn’t paid by November 15, legal action would proceed.

By that point, the pair owed $938,336.16, with the debt continuing to accrue interest.

Now, Reliance Finance is claiming $948,872 and interest at a rate of 14.75 per cent, compounding monthly until a judgement is made, as well as legal costs.

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