Deficit from sale?

Press, 10 June 1977, Page 4

Deficit from sale?

By

ADRIAN BROKKING

More than $10.5M is being claimed against the hotels, and it would appear unlikely that this amount will be recovered by the sale of the hotels. Eighteen months ago the Australian Commodore group tried to negotiate a deal with Merbank Corporation that would have given it ownership of the hotels for close to S6M.

Assuming that this is the sort of price the Australian!

group would still be talking about — and allowing for inflation — the deficit might be something like S4M. It might be more; it is believed that one interested ( consortium has made an' offer of $4.3M, leaving a! shortfall of more than S6M if such an offer were; (accepted. Any monies received from I the sale of the hotels would be kept in the trust fund, and; would be paid out in accor-J dance with the rights of the! various claimant parties. It is almost certain that the! proceedings to determine'

; i these rights will be long and ■ (protracted. > A rough order of preference would be: the payment lof costs, charges, and exllpenses; preferential payments J such as wages and contractors’ leins; secured debts; payjment of the balance as per (court order. However, there seems to (be much confusion about the i legal position of such claimiants as the builders (H. P. (Holt, Ltd) and Merbank Coriporation, and much litigation may be expected before the (affairs of the hotels are ’sorted out.