 | Building owners may see Vellar company pay day |
The owners' corporation of 7 Regent St is taking legal action to have Vellar company Oberon Property Holdings Pty Ltd wound up over money it owes for repairs to defective building works.
The company, which changed its name from Vellar Constructions Pty Ltd in August 2008, is headed by two directors, including disgraced developer Frank Vellar and another relative, Elide Vellar.
In unrelated proceedings last year, Frank Vellar was among 10 people found by the Independent Commission Against Corruption to have engaged in corrupt conduct in dealings with Wollongong City Council.
The ICAC recommended criminal charges be brought against him and a brief of evidence has been handed to the Director of Public Prosecutions.
The Regent St owners' corporation, which represents owners of the 50 units, won a judgment for $135,000 plus legal costs in the Consumer, Trader and Tenancy Tribunal in March this year. The payout related to damage caused when water began leaking into the building in 2005-06. But the money has not been paid.
Yesterday, a solicitor for Oberon Property Holdings told a NSW Supreme Court registrar the company expected to be paid a "substantial amount of money" within the next 10 days. That money could then be used to pay the outstanding amount.
He told the court an accountant's report showed the company had $650,000 in unsecured creditors.
The corporation's solicitor Darrin Mitchell objected to the request for a two-week adjournment, noting concerns that the matter might drag on for too long.
"We are hopeful of settling," Mr Mitchell said.
"But we were only contacted yesterday by representatives for the defendant (with the new information)."
Smorgan Steel, which is also owed a substantial sum by Oberon Property Holdings, is supporting the application to wind up the company.
A legal representative for a third creditor also came forward yesterday in support of the court action.
Senior deputy registrar Andrew Musgrave agreed to adjourn the case to September 8 and said the accountant's report suggested two weeks were needed to resolve the matter.
