Thursday, 25 February 2016

Levi complies with order on Terra Cresta

David Levi opposed
of Terra Cresta.
SYDNEY liquidator David Levi is known as a stickler for detail so it is passing strange to discover he took more than three months to comply with a court order.

On November 2, 2015 Supreme Court registrar Rebel Kenna ordered that the books and records of Terra Crest Business Solutions Pty Ltd (TCBS) be delivered to Schon Condon, who was appointed liquidator the same day when the company's former director, Owen Salmon, successfully applied for its reinstatement.

SiN's sources have advised that the TCBS files arrived at Condon's offices in Parramatta on February the 16th, 14 weeks after the date of the order.

When contacted, Condon confirmed that he'd received the material but wouldn't say when it had arrived. He did however say he'd not yet gone through it. Levi did not respond to questions and requests for comment.

What SiN has learned independently is that it was initially represented to Condon by an unidentified party that the books and records of TCBS comprised 160 boxes.

As any insolvency practitioner knows, storing reams of paper incurs a cost and as a general rule liquidators in possession of truckloads of files are only too happy to pass the burden to whomsoever the court instructs. But Christmas and New Year can of course frustrate the best efforts to comply with the wishes of the court and so Condon waited. And waited.

Levi was appointed liquidator of TCBS on August 4, 2008 following an application to the court by colourful insolvency identity Andrew Wily and even then, the files were a point of contention. 

Days after being appointed Levi accused Salmon of a lack cooperation in terms of providing said records. Nevertheless the winding up of TCBS proceeded and was concluded in February 2012. It's no small irony that it was Salmon who succeeded in having the company reinstated, despite Levi's objections.

Salmon needed TCBS to be restored and a new liquidator appointed before he could launch the next phase of his action - a claim against Hall Chadwick - which he did on February 5, 2016.

That action will attempt to prise open a decade-old can of worms involving such luminaries of the Sydney insolvency scene as Hall Chadwick's Richard Albarran, former Hall Chadwick partner Geoff McDonald, accused fraudster Ian Lazar, Wily, solicitor Steven Brown - who in 2010 was cautioned by Legal Services Commissioner Steve Mark in relation to the matter, solicitor Leon Nikolaidis who served time in gaol for an unrelated fraud and, Jim Byrnes.

A detailed account, which centres on Lazar's failed Business Australia Group and the Nauru Phosphate Royalties Trust, would fill a small library so SiN will serialise the history in ongoing reports of Salmon's proceedings, which return to the court on Monday, February 29.

Further reading:

(1) Terra Cresta resurrected as Levi withdraws

(2) Levi opposes resurrection of company linked to Lazar

(3) Albarran cries foul as barrister invokes old ghosts

Got a SiNful tale to tell?

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