Seven years is a long time without a decent drink so liquidator Geoff Reidy will be relieved that a judge has at last granted him leave to imbibe.
For the Rodgers Reidy co-founder the court’s approval means he can finally pour himself a pint of fees from the liquidation of Jainti Pty Ltd, a corporate trustee of the Zambito Trust to which Reidy was appointed voluntary administrator way back in 2011.
Jainti is one of various entities Reidy has controlled since 2011 when the two families behind the Zamora Homes Group brought him in to break a deadlock resulting from the families falling out.
Of course, Reidy may well regret that a pint’s all that’s left in Jainti, given the pool of assets from which he’s been permitted to sip has shrunk considerably courtesy of the sponge of litigation.
Time and time again, Reidy’s been forced to choose whether or not to commence proceedings or whether or not to defend them.
This included a contested application for freezing orders Reidy had to make to prevent a distribution of monies to certain beneficiaries before a court had confirmed whether or not the funds vested with Jainti.
Some of the member creditors for their part hurled allegations of conflict and sought to appoint a special purpose liquidator, proceedings which they eventually abandoned.
There were costs orders too of course and applications for indemnity costs.
As a result of this welter of litigation there would be no return for the creditors, barrister for Reidy Hugh Somerville explained to NSW Supreme Court judge Ashley Black on Monday.
Not only that, the litigation had drained Jainti’s coffers such that Reidy was only claiming about half of what he was actually owed, a sum that still amounted to more than $425,000 for the period from February 23, 2015 to March 1, 2022.
More than passingly familiar with liquidator’s remuneration applications in general and with the Zamora debacle in particular, Justice Black was comfortable with the application and made the orders sought, notwithstanding the objections of Jainti director and 25 per cent shareholder Sam Morabito who attended the hearing in person and was granted limited leave to complain.
Further reading:
Liquidator Facing Conflict Allegations
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