IMF backs Saraceni over Raine Square

Property developer Luke Saraceni and his business partner Hossean Pourzand have struck a funding deal with IMF (Australia) to support their legal action over the Raine Square development.

The legal dispute stemmed from the appointment in Janaury of receivers to the Raine Square project, which was being developed by Westgem Investments, a company jointly owned by Messrs Saraceni and Pourzand.

Mr Saraceni labelled the receiveship unnecessary, saying the project had "strong financial metrics".

The trigger for the appointment was Westgem missing a substantial payment to its lenders, at a time when Mr Saraceni was putting forward alternative financing proposals.

Bankwest appointed Mark Mentha and Cliffe Rocke of KordaMentha as receivers and managers.

IMF said today that its funding and management support will be provided for litigation currently underway against Bosi Security Services and Messrs Korda and Rocke in the Supreme Court of WA.

It will also support investigation and, if appropriate, funding of further litigation.

In February, Mr Saraceni filed a writ in the Supreme Court to have KordaMentha removed as receivers of Raine Square.

The writ questioned the validity of the appointment of KordaMentha as receivers and managers by the project financiers, Bankwest and Bank of Scotland International.

Since the origial appointments, receivers have been appointed to several other companies and assets owned by Mr Saraceni.

A Bankwest spokerperson said: "This new funding agreement does not affect the Bank's position, it remains very confident that it will succeed in all Court proceedings."