Lowe’s in court seeking Woolworths’ documents in Masters clash
US giant Lowe’s will today go to court seeking Woolworths documents in its fight over the Masters fire sale.
US hardware giant Lowe’s has surprised Woolworths with another hearing before the Federal Court today, this time to make an expansive grab for documents relating to the supermarket company’s dealings with its failed hardware chain Masters that could include the planning, strategies, documents and communications around its $1.5 billion fire sale of the business.
Lowe’s has scheduled a hearing before the Registrar of the Federal Court this afternoon and its lawyers are expected to ask for a wide range of documents that relate to Woolworths’ announcement last month that it would carve up the assets of Masters, selling it off to a range of buyers and investors, and then shut down all Masters stores.
That fire sale, which has angered Masters joint venture partner Lowe’s, includes selling Masters properties to a consortium of high-net worth individuals and families led by former UBS boss David Di Pilla for more than $750 million, selling Home Timber & Hardware to Metcash for $165 million and the sale of Masters inventory for around $500 million.
But Lowe’s, which owns one third of Masters, has objected to deals struck by Woolworths and raced to court last month to seek an immediate winding up of Masters and an equitable division of its remaining assets.
That court action could scupper Woolworths’ (WOW) own $1.5 billion disposal plans.
When Lowe’s went to the court last month it didn’t inform Woolworths, keeping it in the dark even as its lawyers were arguing their case before a judge.
Lowe’s today will move to obtain extensive documents from Woolworths that relate to Masters and its holding company Hydrox Holdings. It is believed Lowe’s will ask the court to gain it discovery over a very wide range of documents that Woolworths has, that might include its talks with Mr Di Pilla’s consortium as well as other investors and advisers as it set about putting together its plans to shut down Masters.
Woolworths is expected to argue before the Federal Court this afternoon that Lowe’s should not be given access to these documents and that it is too expansive.
Woolworths and Lowe’s are scheduled to next appear before the Federal Court on September 15 as the two former partners, now turned adversaries, argue over the winding up of Woolworths.
Last week Woolworths directors resigned from the board of Hydrox, the vehicle that houses Masters, and were replaced by insolvency specialist Mark Korda and his colleagues from high profile insolvency firm KordaMentha.
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