Wednesday 6 June 2012

Council moves to sequester Obeid estate

RATEPAYERS frustrated by moribund local government will be impressed by the speed with which City of Sydney Council has moved to bankrupt Moses Edward Obeid.
Only a week ago a Federal Magistrate dismissed Moses' last avenues of appeal against a bankruptcy notice. His appeal followed a Supreme Court judgement which in 2011 found he owes City of Sydney council more than $12 million.

The son of former Labor minister Eddie Obeid, Moses appealed the debt judgement but will have to wait until November for a hearing.

Waiting is not on the Council's agenda. Yesterday it filed a creditors petition in the Federal Court and followed that up today with formal notification to ITSA, the bankruptcy regulator, that the petition had been filed.

"The City of Sydney has filed a creditor’s petition in the Federal Court and is duly notifying today the Insolvency and Trustee Service Australia (ITSA), which is the government body administering the Bankruptcy Act, that the creditor’s petition has been filed," the council said in a statement.

At this stage it's uncertain which of NSW's 59 bankruptcy trustees will accept an appointment that may require him or her to uproot the Obeid family's hedge of impenetrable trusts. At least whoever it is will know the council's pockets are deeper than the average creditor's.

In addition, the council said in its statement that it also intends "pursuing repayment of the legal costs that the Court has ordered are payable by Streetscape and Mr Obeid."

The creditors petition is set down for first directions on June 20.

Contact SiN

No comments:

Post a Comment

Thank you for your comment. It will be assessed for suitability as soon as possible.