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$2.05m property sold to cover $400k loan
Norrie Ross
Herald Sun
August 06, 20126:49PM
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A GOLD Coast businessman said today that a Melbourne property was sold for $2.05 million to cover a $400, 000 loan made by his company six months earlier.
Paul James Scanlon, 35, told a Federal Court liquidator's examination that in 2010 his company Global Investments agreed to loan $1 million to a Melbourne company, MPM Capital.
On March 29, 2010 MPM drew down $250, 000 from the loan and then a further $150, 000.
Mr Scanlon told lawyer Stephen Mansour, appearing on behalf of the liquidator of MPM, that with establishment fees, interest and default payments the amount outstanding was $691, 000 by April 7, 2010.
Mr Scanlon said he believed he was introduced to MPM by another Queensland company called Auswise and with default fees, legal fees, interest and other charges the amount owed had grown by to $1.95 million in six months.
In July 2010 the loan facility was terminated, Mr Scanlon said, and a property in Queens Pde, Clifton Hill owned by MPM was sold and settled in November the same year for just over $2 million.
Mr Scanlon told the court that global Investments was in the business of lending money.
Mr Mansour said according to documents produced to the court by Mr Scanlon $250, 000 of the proceeds of the property sale went to a called Monte Cristo Holdings through the HSBC bank in Singapore.
"It appears that way, '' Mr Scanlon said.
Mr Mansour asked Mr Scanlon why he directed $250, 000 to Monte Cristo and he explained it was "business dealings between companies''.
Mr Mansour said that the documents showed a further $1.1 million went to a Gold Coast company, Bell Legal, but Mr Scanlon said he could not remember why Global paid over the money.
"Are you seriously saying you can't remember why you advanced $1.1 million, '' Mr Mansour said.
"I don't know. It was a few years ago, '' Mr Scanlon replied. "It would have been documented at the time.''
Mr Scanlon denied he was a director of Monte Cristo and said he could not name anyone associated with the company.
Mr Mansour asked if he had any communications, either verbal or in writing, with Monte Cristo and Mr Scanlon replied: "I might have''.
"Who?'' Mr Mansour asked and Mr Scanlon replied: "I don't know.''
Mr Scanlon said Global Investments was in the business of lending money and he denied that it had been renamed Prime Bank.
The businessman said he was involved with a company called Prime BNK, registered in Bundall, Qld but "it's not doing very much''.
Mr Mansour asked if Global Investments had lodged tax returns and he replied "yes, to my knowledge” and he when asked if Prime BNK had lodged tax returns he replied: "I would expect so, yes''.
Federal Court registrar David Pringle, sitting in Melbourne, made orders that Mr Scanlon produce bank statements detailing the various financial transactions and an emails or correspondence between Global and Monte Cristo and Global and Bell Legal.
The liquidator’s examination was completed and the case is expected to return to court at a later date.
Mustang arm fails
Nick Nichols, business editor | July 17th, 2009
MUSTANG Sales Gold Coast Pty Ltd has been placed into voluntary liquidation, throwing into doubt a looming $3 million law suit planned by one of its creditors.
The company has called in liquidators almost 18 months after its former parent, Mustang Marine, emerged from receivership under the control of the South Africa-based Standard Bank of Asia.
Mustang Sales Gold Coast Pt5y Ltd (MSGC) was the former retail distribution arm of Mustang Marine, which this week distanced itself from the company's collapse.
Mustang Marine's chief executive Chris Heaton said the liquidation of MSGC was part of the 'old regime' at Mustang Marine and did not affect the luxury boatbuilder's current operations.
Mustang Marine was placed in receivership in October 2007.
While Standard Bank took over the business assets of Mustang Marine in February last year, it withdrew all financial support for MSGC as part of the deal.
MSGC continued to operate until liquidator David Hampleton, of RE Murphy and Co, was appointed on July 3.
MSGC has just three listed creditors, Mustang Marine, which is owed $612, 105, the Australian Taxation Office, owed $11, 797, and Denraydon, which has an unspecified claim.
Denraydon is controlled by Gold Coast businessman Denis Mulheron, who ran the Mustang dealership at Runaway Bay until January last year.
MSGC was the sole supplier of new Mustang boats to Mr Mulheron's dealership, a relationship which soured in late 2007 at the time of Mustang Marine's receivership.
Mr Mulheron revealed to The Gold Coast Bulletin this week that his company Denraydon was about to lodge a recovery action in the Supreme Court of Queensland over an ongoing dispute.
He told The Bulletin that he had planned to lodge his claim of up to $3 million against the company this week after failing to secure a negotiated settlement with MSGC directors.
MSGC took over operation of the Runaway Bay dealership in January last year as a result of the dispute with Denraydon.
MSGC liquidator Mr Hampleton declined to comment on the windingup action.
It is understood he is still undertaking his investigations into the company.
Until June last year, MSGC's board of directors included Paul Scanlon, who was at the helm of Mustang Marine when it faltered in 2007.
Standard Bank of Asia's director of principle trading, Martin Lodge, also remained a director until June 30.
Mustang Marine director Russell Watkins is now listed as MSGC's sole director.