Crest Estate Update – Dec 2021

Crest Estate Update - December 2021

Summary:

Extensive preparation has been underway around a two-pronged legal approach:

  1. Bankruptcy Notices issued on behalf of a number of Lifecorp Members
  2. Formal application to ASIC lodged on behalf of Phil as the Mortgagee.

Regarding 1 above, we can confirm:

  • Supreme Court judgment has now been accepted with the names of all Lifecorp Members involved in the Class Action recognised (instead of awarded to one lead plaintiff with an attached member list).
  • Five (5) members have been selected and the fees associated with serving these notices will be paid by Lifecorp.
  • This allows our first 5 Bankruptcy notices to be issued, with the goal of them being served on the developer prior to Christmas.
  • If the developer pays the amount claimed, these funds will be held for the entire pool of Members, then we will coordinate for 5 or 10 additional member claims to be issued immediately after.
  • If the developer doesn't pay (as we expect) within 21 days, we are able to fast track Bankruptcy proceedings, allowing a full public examination of where the money has gone.
  • This process will put other parties under the spotlight, including the developer’s solicitor, potentially opening up access to seize a wider range of assets to ensure we recover every cent we are owed.
  • Taking this bankruptcy proceeding path, it is unlikely the Liquidators appointed by the developer will ever be required, so no longer a need to remove and appoint our own.
  • A Trustee in Bankruptcy will need to be appointed to the process, but we see this as the preferred option moving forward.

Regarding point 2 above (very little impact on Lifecorp Members):

  • Phil has invested heavily in an effort to recover funds, along with every cent owing to Lifecorp Members.
  • Main person involved from Hall Chadwick left earlier this month to start his own business.
  • Goal is to stay with this person that has already invested heavily in helping us achieve success, so are now negotiating with Hall Chadwick for our file to be transferred to his new company.

Thanks for your patience and support.

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