Published 3 February 2009
Gold Coast developer Raptis Group Ltd appointed 2 sets of administrators on Saturday – one set to the parent formerly listed company which has been struggling to stay alive for months, and the other set to companies working on the $A700 million Hilton Surfers Paradise Hotel & Residences development.
Managing director Jim Raptis said Brian Silvia & Andrew Cummins (BRI Ferrier (NSW) Pty Ltd) had been appointed as administrators of the group and Sal Algeri, Simon Cathro & John Greig (Deloitte Corporate Reconstruction Group) were appointed administrators of 11 controlled entities associated with the Hilton development.
Mr Raptis said Brookfield Multiplex Developments Australia Pty Ltd had been called in to continue construction of the Hilton project.
ANZ Bank Ltd appointed administrators from Deloitte over 4 other Raptis companies –National Australia Bank Ltd appointed Jamie Harris & John Cronin (McGrathNicol) as receivers of Chevron Towers Management Pty LtdCapital Finance Australia Ltd (a subsidiary of HBOS) appointed David Rosenblum as a director of 2 companies that hold presale contracts in stage 3 of the Southport Central project, replacing a Raptis director & secretaryIn December & January, other insolvency practitioners were appointed to Raptis entitiesOn 27 November, Raptis said it had entered into an irrevocable offer to sell the Sheraton Mirage Hotel Surfers Paradise for $A80 million, which hadn’t yet been acceptedRaptis’ securities were suspended from trading on 12 September.
Last August, 2 weeks before the company’s suspension by the ASX, Raptis said it had $A912.5 million of debt but only $A9.8 million of equity.
Mr Raptis said yesterday: “We need to approach & seek the support of our financiers and work with the voluntary administrators to investigate the possibility of a deed of company arrangement.”
He said the board was committed to this process, which provided potential to restructure, with a view to relisting the group.
Mr Raptis described the appointment of administrators to the hotel project as “a prudent step to enable the project to be developed to completion”.
He said it was expected a deed of company arrangement would be put to the second meeting of creditors “to allow the project to emerge from administration and be completed in the ordinary course of business”.
Attribution: Company releases, story written by Bob Dey for the Bob Dey Property Report.