Salim Mehajer loses bid to stymie appointment of ­administrators

Salim Mehajer has lost a challenge to the appointment of ­administrators to his two companies.

Sydney property developer Salim Mehajer has lost a challeng­e to the appointment of ­administrators to his two ­companies that reportedly owe creditors $97 million.

Mr Mehajer had testified that 12 hours before the appointment he had ousted the director of Sydney Project Group and SET Services, Kenneth Lee, and replaced­ him with his sister Khadijeh Mehajer.

Mr Lee appointed administrators to the companies, 12 hours after the meeting Mr Mehajer­ had claimed to have held to oust him. The move came after a Hong Kong-based businessman issued a demand for the repayment of $83m. Sydney Project Group and SET Services had just $32,000 in the bank.

Lawyers for Mr Mehajer have argued that the companies had $100m in assets

Mr Mehajer argued that the appointment was invalid because­ of the earlier removal of Mr Lee from his position, but NSW Supreme Court judge Stephe­n Robb declared the appointm­ent valid.

Ian Pike SC, for the administrators, sought the declaration on the premise that the meeting to remove Mr Lee did not take place. During the court proceedings, Mr Mehajer said Mr Pike’s contention was “absolutely, ­totally incorrect’’.

He also denied a suggestion the meeting was held after Mr Lee appointed administrators.

Justice Robb said it was “highly likely” the companies were insolvent.

Mr Mehajer’s lawyers success­fully sought a stay on the ­administrators until Wednesday, pending a likely appeal.

AAP