The Federal Court has rejected an alternate regime of Court-appointed supervision proposed by former Westpoint director Norm Carey in relation to his personal assets and those of various companies associated with him.
Yesterday, Carey and the companies associated with him acknowledged that some form of Court-ordered supervision was appropriate.
However, Carey and his associated companies had argued that the regime of Court-appointed receivership previously imposed should be substituted for a looser regime of Court-appointed supervision, allowing the expenditure of up to $25,000 per week by the affected companies without approval by any court appointed expert (but with those expenditures being reviewed by a court appointed accountant on a monthly basis).
The Court rejected the alternate proposal put forward by Carey and his associated companies.
Yesterday, The Court extended orders previously made to appoint receivers to the assets of a number of company directors and companies associated with the Westpoint group of companies.
In December last year, The Australian Securities and Investments Commission sought an extension to the asset-freezing orders while its investigations continued because it is concerned that there is a real risk that the assets of various individuals and companies associated with Westpoint might be shifted or dissipated to the detriment of creditors.
ASIC also sought a receivership order in relation to Silkchime Pty Ltd, similar to those made previously in relation to other companies in the Westpoint Group and an asset preservation order made in relation to Healthcare Properties Pty Ltd.
In a decision handed down yesterday, the Federal Court indicated that the orders previously made against the following people and companies would be extended until 30 June 2007:
• Norman Phillip Carey
• Richstar Enterprises Pty Ltd
• Westpoint Realty Pty Ltd
• Bowesco Pty Ltd
• Redchime Pty Ltd, and
• Keypoint Developments Pty Ltd.
In addition, the Court ordered that receivers be appointed to Silkchime Pty Ltd and an asset preservation order made in relation to Healthcare Properties Pty Ltd (which had already had receivers separately appointed to it).
Orders against Messrs Graeme John Rundle, Cedric Richard Palmer Beck and John Norman Dixon were extended by consent. Rundle agreed to those orders being extended to 16 June 2007 and Beck and Dixon agreed to those orders being extended to 20 April 2007.
Australian Property Journal
