Living Australia development company, owned by Elli Cakar, potentially days away from closure

The development company behind a failed bid to transform an Adelaide suburb into a $1.4 billion metropolis is facing imminent closure over unpaid debts.

An initial concept plan for the $1.4 billion Thorngate Skywalk City, which was proposed for an entire suburban block. Picture: Warren Design, courtesy of Prospect Mayor David O’Loughlin.

The company behind a failed bid to transform an Adelaide suburb into a $1.4 billion metropolis is facing imminent closure over unpaid debts.

The Federal Court has ordered Unley development firm Living Australia be wound up and a liquidator appointed on grounds the company, which is also attempting to build a $50 million 31,000sq m homemaker centre at Seaford, is insolvent.

Registrar Nicholas Parkyn refused a bid by Living Australia to oppose an application by creditors to wind up the firm but he stayed his order until June 18 giving time for company director and pub baron, Elli Cakar, to appeal his decision.

It was the controversial and “preposterous” plan to transform a historic Adelaide suburb into a $1.4 billion metropolis — but it never happened. Here’s why.

Mr Cakar’s lawyer Greg Griffin said he will lodge a review of Mr Parkyn’s order on Friday.

“If the review overturns the decision of the registrar, everything will be back to where we were,” he said. “If the judge doesn’t … then the company is in trouble.”

Living Australia director Elli Cakar

The winding up order comes after multiple creditors joined an action by business consultant Phil Ransome to close down Mr Cakar’s firm over a disputed $25,000 consultancy bill.

Among supporting creditors were Gregory and Wendy Mutton who were defendants in a separate court action by Living Australia over a failed land sale deal.

The pair were awarded court costs against Living Australia in the District Court in December after the company’s bid to extend a caveat on two blocks of land owned by the Muttons failed.

Their lawyer John Wadlow said the costs were between $35,000 and $47,000.

Mr Griffin said Mr Cakar’s hospitality group Entertainment Venues Australia, which operates six hotels including the Royal Terrace Hotel, Glenelg Pier Hotel and Anchorage Hotel, was unaffected by the ruling.

The Advertiser reported that Living Australia had audacious plans to build a residential, retail and office precinct across a 20,000sq m block in prestigious Thorngate, in Adelaide’s inner northern suburbs.

The paper revealed that at least four residents invested collectively several hundred thousand dollars in the so-called Thorngate Skywalk City plan, some in exchange for significantly higher prices for their properties if the project proceeded.