ProvLiqs may sway $95m harbour property outcome

Marital enmity and alleged share register shenanigans have led to the appointment of PKF’s Mark Roufeil and Brad Tonks as provisional liquidators (ProvLiqs) to companies linked to the alleged buyer of a Sydney Harbour-front reportedly valued at $95 million.

The PKF pair were appointed by the courts in late December to various companies linked to businessman “John” Changjin Li of the Kingland Group.

In 2020 Li was reported by various media outlets as the buyer of Edgewater, the 92 Wolseley Road Point Piper pile built in the 1980s by showbiz entrepreneur Michael Edgley and his then wife Jeni.

After it was sold in 1985 for $5 million to the co-founders of the Katies women’s retail clothing chain Joe Brender and the late Sam Moss, the dwelling was converted to two apartments.

The reports in 2020 indicated that settlement would take two years but as of the PKF pair’s appointments in December 2022 the transaction remains clouded in uncertainty.

A key contributory of the companies to which the ProvLiqs are appointed is Ms Meihong Yang, Li’s estranged wife.

As the NSW Supreme Court heard yesterday, Ms Yang, who is the petitioning creditor, is alleging that her shareholdings in some of the companies have been altered without her consent.

Mr Li insists the changes, which have the effect of disentitling his estranged wife, were agreed to by her.

One of those companies is Point Piper One Pty Ltd, which isn’t in provisional liquidation yet but is the controlling shareholder of Vaucluse 29 Pty Ltd, which is.

According to ASIC records the directors of Point Piper One Pty Ltd are Changjin ‘John’ Li, 60 of 92 Wolsely Road Point Piper and this daughter from his second marriage Zihrou Li, 20 of Hopetoun Avenue Vaucluse.

ASIC records further show that in July 2022 the share structure of Point Piper One Pty Ltd was altered.

The 100 ordinary shares were cancelled as a consequence of “forfeiture”.

100 A class shares are then issued to Mr Li and 9,990 C class shares are issued to Ms Yang.

A similar change was undertaken in June 2022 to the pair’s shareholdings in Vaucluse 29 Pty Ltd.

While it was not made clear in court yesterday how the changes might affect the Edgewater sale, Ms Yang, who unlike Mr Li, is an Australian citizen, is seeking access to the contract for sale, and all materials relating to the deal.

Mr Li, who iNO understands is living in the property despite it still being registered in the name of the vendors, initially objected but after Ms Yang provided undertakings as to confidentiality, consent orders were made. iNO’s sources have indicated that Mr Li’s former wife is involved in finding the purchase.

Given Roufeil and Tonks were recently instructed to provide a copy of their first report to the Deputy Commissioner of Taxation (DCoT), there may be more significant revelations to come and potentially a surplus to be squabbled over if and when their status converts to that of liquidators appointed in a winding up.