Chris Zappone Sydney Morning Herald WA September 18, 2012
Property developer Luke Saraceni has suffered a legal setback today, with the Supreme Court of Western Australia ruling that receivers had been lawfully appointed to his Westgem Investments holding company in January 2011.
Receivers KordaMentha welcomed the ruling in the long-running case involving the $500 million Perth commercial property, Raine Square.
"I hope today's decision will bring to an end Mr Saraceni's strategy of seeking to undermine the receivers'," said Mark Mentha, of corporate turnaround and restructure advisory KordaMentha.
Mr Saraceni, the sole director of Westgem, is seeking compensation for what he claimed was an unjustified receivership call on his group.
Westgem, a special purpose vehicle which owns Raine Square, was placed into receivership by financiers Bankwest and Bank of Scotland, after the company failed to make a $50 million repayment in December 2010.
The West Australian reported that Mr Saraceni planned to continue to pursue legal action against the receivers. Mr Saraceni holds 51 per cent of Westgem’s shares along with commercial property investor Hossean Pourzand.
Bankwest, whose headquarters are located in Raine Square, welcomed the outcome, saying it was "keen to put the distraction of these particular legal proceedings behind them so they can focus on the completion and sale of the projects."