The drawn-out saga surrounding the Cyprus Community of NSW has reached a turning point, with creditors voting overwhelmingly in favour of a Deed of Company Arrangement (DOCA) following the $55 million sale of its Stanmore club property to Conquest Property Group.
Court ruling clears the path
In August, the Supreme Court of NSW ruled that the administrators, Morgan Kelly and David Kennedy of EY Australia, could finalise the sale without seeking member approval, despite strong objections.
Justice Black held that the powers of voluntary administrators under the Corporations Act override the Registered Clubs Act provisions requiring a members’ vote, a decision with potential ramifications for more than 1,300 registered clubs across the state.
The ruling has allowed the $55 million transaction – which administrators maintain was the best offer among seven bids – to proceed. The deal will extinguish the Community’s debts of over $20 million, clear years of litigation expenses, and leave tens of millions in surplus for future operations.
DOCA terms endorsed
At a creditors’ meeting on 10 September 2025, the DOCA was approved by an overwhelming majority, formally setting the course for the organisation’s financial recovery.
Key features include:
- Creditor repayments: Creditors are expected to be repaid in full, though distributions will not begin for about 12 months.
- Surplus funds: Once the property sale is completed and debts and costs settled, between $22 million and $26 million is projected to remain.
- Administrators’ remuneration: EY’s administrators and deed administrators will collectively recover about $2.5 million in fees and costs. Their ongoing remuneration (for their role as deed administrators) is capped at $255,979.20, except in the event of litigation or extraordinary work.
- Directors reinstated: Control of the company is being handed back to the existing directors, although their powers remain limited by the terms of the DOCA. Any changes to the board must be approved by the deed administrators. This does not include legal costs associated with litigation to date.
- Employee protection: Employees will receive priority for eligible entitlements, in line with the Corporations Act.
- No requirement for AGMs/EGMs: The DOCA contains no provision requiring an Annual General Meeting or Extraordinary General Meeting to be held while it remains in force.
What happens next
Settlement of the Stanmore sale is expected in twelve months, with funds flowing first to creditors and administration costs before the Community receives its surplus. Once creditors are paid in full and administrators’ costs are discharged, the Community will return to ordinary operations under its directors.
Opponents of the deal continue to argue that the sale undervalued the property and eroded the democratic rights of members.
Nonetheless, for now, the Cyprus Community of NSW appears to have secured both financial stability and a roadmap forward, even as debates continue over the cultural and emotional cost of selling its historic Stanmore home.
