Monday, 11 March 2013

Lombe to oust Ozem if Obeid DoCA voided

David Lombe
Photo: Deloitte
DELOITTE's David Lombe is queued to liquidate the Obeid-backed Streetscape Projects if an application before the NSW Supreme Court succeeds.

Filed by major unsecured creditor City of Sydney Council, the application seeks to reverse a controversial deed of company arrangement (DoCA) executed on August 9, 2012 at a meeting of Streetscape’s creditors.

The Council wants an order either terminating the deed or declaring it void. Additionally, it wants Streetscape wound up and Lombe appointed as liquidator.
Ozem Kassem
Photo: Cor Cordis

Cor Cordis partners Ozem Kassem and Robert Kite are joint and several administrators of Streetscape Projects (Australia). The deed was proposed by sole director, Moses Obeid.

Kassem used his casting vote as chair of the August 9 meeting to push through the DoCA resolution after creditors were deadlocked between those in support and those wanting the company placed into liquidation.

Kite and Kassem are listed as second and third defendants in the Council’s application, which returns to the court in April.

Streetscape has filed a 10-page defence containing multiple denials of the Council’s points of claim.

The Streetscape deed offers a return of no more than 3c in the dollar, the amount dependent on the outcome of separate legal action between Moses Obeid and the Council.
Robert Kite
Photo: Cor Cordis

It is underwritten by Obeid Corporation, which as secured creditor has put up a $400,000 bank guarantee.

If the Council’s application is successful Lombe, in his capacity as liquidator, will apply far greater scrutiny to the affairs of Streetscape than Kite and Kassem are able to undertake in their capacity as administrators.

It will also bring the Council's on-hold creditors petition against Moses Obeid a step close to reactivation in the Federal Court. 

In that matter PPB Advisory's Scott Pascoe has consented to act as  Moses Obeid's trustee in bankruptcy.

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