As administrators, we sold and settled three properties for amounts exceeding their valuations. This led to the full payment to secured creditors with debts amounting to approximately $8m.
Cor Cordis was appointed over five companies acting as special purpose vehicles for property and land development projects in Melbourne, both operating independently and as trustees of certain trusts.
The appointment coincided with the presence of restraining and forfeiture orders imposed by the Australian Federal Police (AFP) under Proceeds of Crime legislation.
These orders suspended ongoing work and restricted any property-related transactions, including sales, mortgages, or subdivisions. Our challenge was to ascertain the legitimacy of funds used to acquire the properties to exclude them from the forfeiture orders.
Our primary challenge involved navigating complex legal constraints imposed by the AFP's restraining and forfeiture orders, which hindered property dealings and project progression. We needed to establish the legitimacy of the funds used to acquire the properties to protect them from forfeiture while ensuring the interests of secured creditors.
To address this challenge, we initiated a forensic accounting examination to validate the source of funds for property acquisitions. Simultaneously, we engaged in constructive dialogue with the AFP, formulating a strategic approach to handle the restraining orders and Proceeds of Crime Act (POCA) proceedings. This strategy aimed to enable us to deal with and sell the properties and disburse the proceeds to the secured creditors. With the AFP's consent, we pursued the necessary court orders to facilitate this process.
As a result of our efforts, we successfully sold and settled three properties under our administration for amounts exceeding their valuations. This achievement led to the full payment of secured creditors with debts amounting to approximately $8 million. This outcome not only protected the interests of the secured creditors but also resolved the complex legal challenges posed by the AFP's restraining and forfeiture orders.