The founder of construction giant Ralan Group will face public examination in the Federal Court as liquidators continue their investigations into the company’s $561 million collapse.
Ralan’s liquidators, Said Jahani, Philip Campbell-Wilson and Graham Killer of Grant Thornton, filed examination proceedings in the Federal Court on Wednesday seeking to interrogate Ralan founder William O’Dwyer on the examinable affairs of the Ralan group.
The liquidators will also conduct mandatory examinations of Ralan director Bryan O’Dwyer, former chief financial officer Mark Mackey, and licencee Kate Madigan, as well as discretionary examinations of 22 other individuals.
Orders have been sought for the production of documents relating to Ralan from 33 sources, including the Australia and New Zealand Banking Group, the Australian Securities and Investments Commission, Blue Sky Group, Commonwealth Bank of Australia, Deloitte, National Australia Bank, St George, and the Commissioner of Taxation.
Ralan went into administration in July last year owing around $238 million to secured creditors consisting primarily of financial institutions and $323 million to over 2,000 unsecured property investors. Jahani, Campbell-Wilson and Killer are currently in charge of winding up 46 entities within the Ralan group.
The firm developed, marketed and operated residential and commercial properties in Queensland and New South Wales, including the Paradise Resort hotel in Surfers Paradise. Developments which were unfinished when Ralan collapsed include the Ruby and Sapphire towers in Surfer’s Paradise and The Orchid in Sydney’s Arncliffe.
A confidential settlement of three class actions by Ralan property investors against three law firms who allegedly gave negligent advice regarding the now defunct firm was approved by Justice Michael Lee in May 2020.
When Ralan entered liquidation, William O’Dwyer had no assets to his name other than a one per cent stake in his Bellevue Hill home, the class action lawsuits claimed.
Jason Tracy, Timothy Heenan and Salvatore Algeri of Deloitte were appointed as receivers and managers over a number of Ralan entities in August 2019.
A Change.org petition signed by more than 2,000 has demanded an “immediate investigation” by ASIC into Ralan and its directors.
Lawyerly has contacted Grant Thornton for comment.
The Ralan liquidators are represented by Norton Rose Fulbright.
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