Restaurateur Matthew Trim denies father Russell Trim propped up his struggling businesses with $3.8m loan
RESTAURATEUR Matthew Trim has denied under oath that his struggling businesses have been propped up by his father, bankrupt former clothing retailer Russell Trim.
RESTAURATEUR Matthew Trim has denied under oath that his struggling businesses have been propped up by his father, bankrupt forming clothing retailer Russell Trim.
His denial in the Federal Court comes the day after his father told a bankruptcy examination that he had obtained a $3.8 million loan with Matthew Trim’s wife three years ago.
The examination in the Federal Circuit Court by Russell Trim’s bankruptcy trustee, Pitcher Partners, is trying to pin down the movement of the elder Mr Trim’s assets in recent years.
The fiscal investigation revolves around the movement of money related to Mr Trim’s bankruptcy in February this year, the failure of the 77-year-old Trims retail business in May last year, and whether money has been siphoned off to pay for Matthew Trim’s sometimes ill-fated forays into the restaurant business.
Matthew Trim currently runs Norwood restaurant, Grace the Establishment. He has run previous dining venues, including Sparrow, the Manse and Farina Kitchen and Bar.
One of his businesses, T. H. Holdings, Pty Ltd, was placed in liquidation with debts of $900,000 in mid-2012.
Russell Trim, his wife, Elizabeth and Matthew Trim have all been asked in court whether they have trouble with their memory after repeated inability to recall details of events as recent as June - two months ago.
Over the past two days, it has emerged that Matthew Trim’s wife, Olivia, and Russell Trim borrowed $3.8 million from BankSA in 2011.
Matthew Trim today told the court that he had not received any benefit from this money.
When asked if money from the sale earlier this year of his parents’ $1.9 million Toorak Gardens home was used to help his businesses, he said: “Is that a joke”.
Matthew Trim said he had not received any gifts or assets worth more than $1000 in the five years leading up to his father Russell’s February bankruptcy.
However, documents later read out in the court indicated that part of the $3.8 million obtained in 2011 was used to pay two loans in the name of Matthew and Olivia Trim, amounting to $796,000.
Matthew Trim said he did not recall getting any of the money but there had been some “restructuring’’ of debts.
When asked whether his father had borrowed the $3.8 million to bail out some of his failed ventures, he replied: “Not that I recall’’.
His wife, Olivia, then gave evidence that she could not remember filling in an application form for the $3.8 million loan.
When asked why she entered into a loan for $3.8 million she said: “I didn’t really ask any questions’’.
Mrs Trim told the court that she thought the loan was to amalgamate a number of loans, but she did not know which ones.
She told the court she did not know where the money from the loan went.
She said she supposed it was Russell Trim who decided how it was used.
Mrs Trim said she did not know who asked her to sign the papers for the loan.
“I just signed the papers and didn’t really ask any questions,’’ she said.
“When it comes to my family, I trusted them.’’
Russell Trim yesterday gave evidence that he had “no idea” how the money was dealt with after it was obtained in 2011 from BankSA.
He told the examination he had “no expectation I would get the money back”.
Russell Trim agreed with the examiner, Catherine Gobbo, that he would have done anything to keep Matthew Trim’s businesses afloat.
The examination continues on Thursday.