Salim Mehajer loses court bid to stave off administrators

BREAKING: Sydney property developer Salim Mehajer has lost a court bid to stave off the administrators to companies that owe $97 million.

Salim Mehajer has lost a court challenge to the appointment of administrators to two of his companies. Picture: Brendan Esposito/AAP

SYDNEY property developer Salim Mehajer has lost a court bid to stave off the appointment of administrators to two of his companies, which reportedly owe creditors $97 million.

Mr Mehajer took the stand on Thursday to testify that he held a private, 5.30am meeting on June 16 to oust the director of the companies, Kenneth Lee, and replace him with his sister, Khadijeh Mehajer.

Just 12 hours after the alleged meeting, Mr Lee appointed administrators to the companies, Sydney Project Group Pty Ltd and SET Services Pty Ltd, which the court heard earlier in the week had just $32,000 in the bank.

But Mr Mehajer argued the appointment was invalid, due to the earlier removal of Mr Lee from his position.

But in the NSW Supreme Court on Friday, Justice Stephen Robb declared the appointment was valid.

Ian Pike SC, for the administrators, sought the declaration on the premise that the early morning meeting to remove Mr Lee did not take place.

Questioning Mr Mehajer in court, Mr Pike contended as such.

“Absolutely, totally incorrect,” Mr Mehajer replied.

He also denied a suggestion that the meeting was in fact held on the Saturday, after Mr Lee appointed the administrators.

Mr Mehajer told the court the meeting was between just himself, his solicitor Mahmoud Abbas and his sister Khadijeh.

Its early hour was attributed to Ramadan.