Couran Cove: Four companies that operated resort have collapsed into administration, liquidation
Four companies linked to key services and operations of Couran Cove have collapsed into liquidation, owing millions of dollars, in the latest drama to hit the embattled island.
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Four companies linked to key services and operations of Couran Cove have collapsed, owing millions of dollars, in the latest drama to hit the embattled island.
The companies - involved in restaurant venues, water and sewerage operations among other things - are South Stradbroke Caretaking Services, Island Resolution, South Stradbroke F&B and South Stradbroke Operations.
The collapsed companies have incurred millions of dollars in debt for providing services on the troubled island - money unlikely to ever be repaid.
Earlier this month, South Stradbroke Caretaking Services was wound up over a $124,000 debt to a water contractor that performed work for Couran Cove between September last year and February this year.
A William Bayfield Doolen aged 77 was registered as a director of the Caretaking Services company in February.
Previous director Cassandra Elizabeth Gillespie, 36, was a director from when the company was first registered in August 2020 until March 17 this year.
The Bulletin could not contact Ms Gillespie, who is also a previous director of collapsed South Stradbroke F&B.
The F&B company, named as the payer on payslips for some staff at the island’s resort, went into liquidation in August 2022, with debts of almost $1.6m.
Mr Doolen has been a director of that company since June 2022.
The largest unsecured creditor claim in the liquidation has been made by Sydney group EDG Capital.
EDG Capital is headed by Couran Cove service providers’ director Simon Napoli.
EDG claims it is owed $1.17m by the collapsed F&B company, according to a liquidator’s report.
In a statement, Mr Napoli said South Stradbroke F&B operated the island resort’s restaurants “for a period of time”.
“EDG Capital loaned money to the company for its operating capital,” he said.
Asked what his relationship was with Mr Doolen, Mr Napoli said “Mr Doolen is a director of a company that provides services to the island”.
“The island is a large asset and has many companies that provide services to it,” he said.
F&B liquidator Bill Karageozis found 14 companies that had been directed by Mr Doolen had gone into liquidation and said in his report he appeared to “qualify for director banning”.
Mr Karageozis said Ms Gillespie, as former director of two failed companies, could also qualify for banning under the Corporations Act.
ASIC can ban a director if they’ve been an officeholder in two or more insolvent companies within seven years.
Mr Karageozis said in his liquidator’s report he planned to report the matter to ASIC in January this year.
Liquidator reports to ASIC of that type are not made public.
An ASIC spokeswoman said the regulator would only take action on reports “where there is sufficient evidence” and where “action will result in a greater regulatory impact in the market and benefit the general public more broadly”.
A third collapsed company Island Resolution went into administration after a court wind-up in 2020, with the most recent administrator’s report outlining debts to unsecured creditors of $6.45m, as well as $788,000 in employee entitlements.
ASIC records indicate Mr Doolen was registered as a director of Island Resolution for less than two months before the court action was initiated in July 2019.
The previous sole director was Lachlan McIntosh, an accountant with a long history on Couran Cove.
According to administrator David Hambleton’s report, Mr McIntosh made indemnity payments totalling $55,000 to the company between February and November 2022.
Mr McIntosh is a director of 25 companies which own 94 Couran Cove properties between them.
Island Resolution’s parent company, former ASX-listed group Onterran, was the previous owner of the island community and Mr McIntosh was its executive chairman.
A spokesman for Mr McIntosh said he did not have any relationship with Mr Doolen and had not held a management role at Couran Cove since June 2019.
Mr Doolen - a current and former director of 30 companies including one called Ultimate Fabrication - has proven difficult to contact.
Mr Doolen is the current sole director of South Stradbroke Caretaking Services, Island Resolution and South Stradbroke F&B.
The Bulletin spoke briefly with a man, who identified himself as Mr Doolen, by phone on Thursday.
“What’s the problem?” he said. The call was terminated after the Bulletin asked the man about Couran Cove, and subsequent calls and messages went unanswered.
A fourth Couran Cove company, South Stradbroke Operations, went into liquidation on May 23, with debts of $1.8m.
It is solely directed by Craig Horwitz and its shares are held by the company Couran Cove Group, which is directed by Mr Simon Napoli.
Shares in Couran Cove Group are held by another company, SMN Holdings, of which Mr Napoli is sole shareholder.
South Stradbroke Caretaking Services is listed among the unsecured creditors of South Stradbroke Operations.
An EDG Capital email address is listed as a primary contact for South Stradbroke Caretaking Services, which has claimed a $1m debt.
South Stradbroke Operations liquidator Andrew Weatherly’s report said more than $300,000 was owed to the tax office and another $280,000 was owed to staff by South Stradbroke Operations.
Mr Napoli is listed among the employee creditors, with a claim of $127,187 which is not marked as a related party claim.
The report said the company’s failure had been attributed to Covid and ongoing legal battles among the bodies corporate.
Meanwhile, Mr Doolen’s LinkedIn lists him as a director of truck body company Ultimate Truck Bodies - calls to it have gone unanswered.
He is currently director of public dry-cleaning company Laundromap.
The Bulletin called and emailed Laundromap to speak to Mr Doolen.
“I have never heard of that person before,” one staff member said.
Laundromap co-founder Adam Plowman said he would take a message for Mr Doolen to return the call. Mr Plowman is not involved with the collapsed island companies.
Mr Doolen’s address is listed with ASIC as Perrin Place in the Brisbane suburb of Salisbury.
His truck body company is in the neighbouring street of Riawena Rd.
Calls to that business went unanswered on Wednesday and Thursday.
Gavin Morton, of Morton & Lee Insolvency, was appointed liquidator of South Stradbroke Caretaking Services. He did not respond to a request for comment.
About 50 Couran Cove residents remain living at the resort after their power, gas and water were cut in February amid a bitter body corporate dispute.
Their sewerage system was shut off earlier this month after Mr Napoli claimed his companies were owed more than $25 million in outstanding levies.
Residents maintain they have paid their levies and did not owe any arrears.
Those remaining have vowed to stay put and live off-the-grid using water tanks, generators, solar panels and gas bottles.
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