Private equity firm Mayfair 101 today filed legal proceedings in the Federal Court of Australia alleging unconscionable conduct and contraventions of multiple laws by financier, Naplend Pty Ltd, and four receivers from the insolvency firm, McGrathNicol.
Mayfair 101 purchased properties at Mission Beach in Far North Queensland during 2019 and 2020, with a $14.2 million bridging loan from Sydney-based Napla. When the Australian Securities and Investments Commission froze Mayfair’s activities later in 2020, Napla appointed four receivers from McGrathNicol to administer the realisation of the security assets – more than 100 properties at Mission Beach.
In its statement of claim Mayfair 101 alleges that the receivers constructed an unlawful, drawn-out receivership process in contravention of the Corporations Act and the Australian Securities and Investments Commission Act, resulting in the potential for Napla to misappropriate tens of millions of dollars from Mayfair’s property portfolio in Mission Beach and the receivers to incur millions in fees.
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