Former Dubbo man and controversial developer John Kosseris has run into trouble because of outstanding taxes.
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A court-appointed liquidator is liquidating the Kosseris-owned companies SPV 2 and Belmorgan and many more, and further action by the Australian Securities and Investments Commission (ASIC) is not impossible.
SPV 2 owned the former RAAF base in Dubbo, which Mr Kosseris intended to develop into residences with neighbourhood shops and a light industrial complex until the asset, along with an Erskine Street car wash was sold in February.
David Mansfield from the corporate recovery section of a Sydney accounting firm was appointed liquidator of a number of companies associated with John Kosseris on July 23.
Nearly all of those were under receivership, he said.
Liquidation is the orderly winding up of a company’s affairs.
A company most commonly goes into receivership when a receiver is appointed by a secured creditor who holds security over some or all of the company’s assets.
The receiver’s primary role is to collect and sell sufficient of the company’s charged assets to repay the debt owed to the secured creditor.
“My role is to investigate the affairs of the company and the conduct of the director, but it will be restricted because no money is available to pay for the costs of the investigation,” Mr Mansfield said.
Although he was yet to receive the books and records, Mr Mansfield’s preliminary inquiries show “there won’t be any surplus of money to the secure creditors”.
“The only source of money could be any assets available to the liquidator through investigations,” he said.
A Kosseris creditor, the Office of State Revenue, had taken action through the Supreme Court of NSW to obtain a liquidator.
Mr Mansfield named unpaid land tax and payroll tax as the office’s reason.
It could be many months before the matter is closed and even then Mr Kosseris’s ordeal may not be over.
“Once the liquidator finishes ultimately the company would be de-registered,” Mr Mansfield said.
“But ASIC may want to investigate the director and take action.
“The number of companies (Kosseris has had) may be a concern to ASIC.”
Mr Kosseris, who now lives in Wollongong, told the Daily Liberal that now the companies had gone into receivership and liquidation he was not in a position to speak on the companies’ behalf.
faye.wheeler@ruralpress.com