Monday 2 July 2012

Moses applies for FMC appeal

The $4.5 million Vaucluse home of Moses and Nicole Obeid.
Photo: SiN Images
THE woes keep multiplying for Moses Edward Obeid.

On June 25 the embattled businessman filed an interlocutory application in the Federal Court, seeking to adjourn a creditors petition filed in the same court by City of Sydney council.

Moses wants the adjournment so he can appeal a recent Federal Magistrate's Court judgement. 

That FMC judgement dismissed his application for a stay or extension of time to comply with the bankruptcy notice the council obtained after winning judgement against Moses and his company Streetscape for a $12 million dollar debt in the NSW Supreme court in February.

Naturally the council wants its creditors petition heard pronto. It turned up to the Federal Court on June 20 raring to go.

On that day Registrar Michael Wall, having heard both sides, adjourned the creditors petition until July 11, when it's set to be heard before Justice Robertson.

The possibility that the Council might be successful in obtaining a sequestration order against Moses Obeid raises the question of who among Sydney's registered bankruptcy trustees would be willing to have a crack at a nut as tough as the Obeid family trust.

Property searches show that Moses Edward Obeid is not registered as a proprietor of any real property in NSW. His wife Nicole is the registered proprietor of the couple's family home in up-market Vaucluse.

Clan patriarch and former state Labor minister Eddie Obeid is registered as proprietor on the title of properties in Burwood and Port Macquarie.

Site of Eddie Obeid's mid-North Coast bolt hole.
Photo: SiN Images

The Supreme Court judgement indicated Moses has access to sufficient funds to pay the $12 million plus debt to the Council.

Bankruptcy trustees contacted by SiN said that while their job was all about attacking trusts, City of Sydney would have to put up some cash and provide an indemnity for costs. 

The Obeid Family trusts which subsidize many of the family's expenses aren't recent creations and are unlikely to be easily prised open for the benefit of the council.

But first the creditors petition has to be heard. More on that after July 11, perhaps.

Contact SiN

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