Salim Mehajer declared bankrupt by judge
CONTROVERSIAL property developer Salim Mehajer has been declared bankrupt, giving his long list of creditors the green light to pursue his personal assets in the fight to recover their debts.
NSW
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CONTROVERSIAL property developer Salim Mehajer has been declared bankrupt, giving his long list of creditors the green light to pursue his personal assets in the fight to recover their debts.
The ostentatious former Auburn deputy mayor was declared bankrupt by the Federal Circuit Court in Sydney today after the liquidator of Mehajer’s failed company SM Projects served him with a bankruptcy notice via email in September last year over a $200,000 debt.
Today’s court action was supported by a cleaner, the Australian Taxation Office and a marble construction company, who are together owed a total of $1.69 million.
Judge Justin Smith ordered Mehajer’s personal assets to be placed in the hands of a trustee who will now manage his estate and deal with creditors looking for payment.
The troubled former councillor was ordered to pay SM Project Developments Pty Ltd and liquidator Anthony Elkerton legal costs of $20,524.
The District Court last year ordered Mehajer to pay Prime Marble & Granite Pty Ltd their outstanding invoice of $596,000 and $400,000 in legal bills.
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The company — which helped build Mehajer’s “marble palace” at Lidcombe — is continuing to pursue Mehajer over an unpaid invoice worth almost $670,000.
After today’s court action, Mehajer’s trustee can take control of his personal assets in order to try and recoup their money from the estate.
Trustees have powers to investigate all assets owned by people declared bankrupt.
Mehajer owns the $3.8 million flashy Lidcombe house which featured on his infamous wedding in 2015 to Aysha Learmonth. The couple broke up in 2016 and the house is subject to a number of caveats and mortgages.
In December last year, Mehajer lodged an appeal in the Federal Court against the bankruptcy proceedings arguing the notice served on him was not legitimate but Judge Smith dismissed the argument in court on Tuesday.
Supporting the bankruptcy action was the Australian Taxation Office, which is pursuing Mehajer over a $800,000 debt and Anping Yan, a cleaner who Mehajer owes $25,500 for unpaid work.
Other creditors who did not appear in today’s court action are separately owed $97 million.
Mehajer has been banned from managing companies until November 2018, after his role in a failed development company and allegedly made false statements to regulators.
Bankrupts cannot manage companies and are also banned from managing companies for five years after the bankruptcy ends.
Mehajer is currently in prison awaiting trial on charges of allegedly faking a car crash in October last year to avoid a court appearance.
The trustee in bankruptcy, Pitcher Partners’ Partner Paul Weston, will tomorrow begin meetings with SM Projects’ liquidator Anthony Elkerton, supporting creditors Prime Marble, the cleaner and the Australian Taxation Office “to discuss the matter and commence his investigation into the business, property, affairs and financial circumstances of Mr Mehajer”, a spokeswoman for Mr Weston said last night.
“He anticipates being in a position to issue his report to creditors within approximately the next two months,” she said.
Mehajer has 14 days to supply Mr Weston with details of this financial affairs, including any land, property, shares and bank accounts which he holds here and overseas.