AN attempt in the Supreme Court of Western Australia to wind up Ravenswood Resort Pty Ltd, the company behind the $150 million Ravenswood Sanctuary Resort project near Pinjarra, has been successful.
Master David Newnes ruled that Ravenswood Resort should be wound up and that PPB Ashton Read, the liquidator appointed to RRCM Pty Ltd – the company appointed to manage Ravenswood Resort’s development work – be appointed.
The company owes the Commonwealth Bank of Australia more than $6 million with interest continuing to accrue.
It also owes water rates, land tax and council rates of $246,989.18. The court was told unsecured creditors could be owed as much as $8,656,623.93.
However, the news for unsecured creditors is getting brighter with the liquidator close to settling a sale of the development.
PPB Ashton Read partner Simon Read told WA Business News a sale of the development was on track to be concluded in September, which would cover the bank’s exposure.
“The bank will be paid out and there should be substantial equity left,” he said.
One of the parties thought to be involved with that purchase is Rustic Haven, which had an exposure to the development.
The action was brought by Chew Lan Sim, a director of Ravenswood Resort, and Richard Yeap Hoon & Associates – listed as a creditor of Ravenswood Resort.
Ravenswood Resort directors Chok Keang Lao and Kasi Palaniappan opposed the application and also opposed the appointment of a common liquidator to both companies.
In his affidavit to the court Mr Read says: “The company currently has no funds available to pay any of these debts”.
He also says the company’s books and records indicate that, prior to the appointment of receivers and managers, there had been a significant number of inter-company transactions between Ravenswood Resort and RRCM.
Mr Read says both companies’ books were confused and it was unclear whether all creditors had been recorded.
Ravenswood Sanctuary Resort has attracted about 100 residents.
Only three holes of its much-vaunted 45-hole golf course – to be designed by WA golf star Graham Marsh – have been completed.
