Prentice wins possession after Coshott claims dismissed

The Bunyala Road property of bankrupt Robert Coshott to be repossessed by Max Prentice.

BANKRUPTCY trustee Max Prentice has won possession of a rambling property in Bunyala Road, Bellevue Hill valued at up to $4 million.

On Tuesday, Federal Court Judge Robert Buchanan ordered the large residential home vest with Prentice as trustee for sale.

The judge gave the bankrupt, Robert Gilbert Coshott, his wife Ljiljana and their sons James and Michael 42 days to clear out. You can read Coshott V Coshott (2013) here.

The BPS Recovery partner’s win, which includes costs, was facilitated by insolvency lawyer Sally Nash. It concludes a relatively short court battle that was preceded by years of litigation between the bankrupt, his former trustee John Burke, and more recently, the bankrupt’s son James.

Burke relinquished the appointment in February this year, leaving the way open for Prentice to attempt to recover a half share of the large home.

This week the judge was scathing in his assessment of the attempts made to thwart Prentice’s vesting claim.

“… any suggestion or arrangement tending to suggest that Mr Coshott (the bankrupt) purchased the 50 per cent interest in the Bunyala Road property, which was registered in his name, otherwise than in his own interest, was, and is a sham”, Justice Buchanan said.

The judge also said that based on the evidence available to him: “the further conclusion is inescapable, in my view, that the proceedings in the Supreme Court of New South Wales were an abuse of process of that court.

“Maintenance of the proceedings in this court by the applicants was an abuse of the process of this court.”

Prentice is hoping to recover up to $2 million for creditors from the sale of the property.

Further reading: Burke passes Coshott baton to Prentice

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About the Author

Peter Gosnell
Insolvency News Online illuminates the practice of insolvency Australia-wide, highlighting the triumphs and travails of the nation’s registered practitioners and the accounting and legal professionals who work with them. INO is produced by Peter Gosnell, former business editor and senior business reporter at The Daily Telegraph newspaper. During a decade-long career, your correspondent reported on such notable corporate collapses as HIH, One.Tel, Westpoint and Fincorp as well as some of the nation's highest profile bankruptcies and the investigations and prosecutions arising from Australia's most notorious instances of white-collar crime.

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