A fresh legal challenge has been filed in the Federal Court of Australia, continuing a long-running series of court proceedings involving the Cyprus Community of NSW and its assets, this time directed at Cyprus Community of N.S.W. (Holdings) Limited.
Court documents filed in December show that Dr Costas Costa has commenced proceedings under the Corporations Act, seeking to invalidate or bring to an end the voluntary administration of Cyprus Community of N.S.W. (Holdings) Limited, which entered administration on 29 September 2025 following the appointment of administrators.
The application is supported by an affidavit sworn by Dr Costa, alleging that the directors’ decision to appoint administrators was made for an improper purpose and should be declared invalid. In the alternative, the application seeks orders terminating the administration and requiring a meeting of members to be convened.
A dispute spanning multiple court actions
As previously reported by The Greek Herald, the Federal Court filing forms part of a broader pattern of litigation connected to the Cyprus Community and its assets, including the Stanmore property.
Court proceedings involving Dr Costa and his sister, Dorothy Bassil, date back to early 2024, following the rezoning of the Stanmore site in May 2023.
In the period that followed, multiple general meetings of members were convened to consider the future of the property, including whether it should be sold or redeveloped. Those meetings did not proceed after a series of court applications, including applications for injunctive relief, were commenced seeking to restrain members from meeting and voting. As a result, members were unable to convene or exercise voting rights during that period.
Community notices referred to in court proceedings indicate that meetings were scheduled for 26 November 2023, 11 February 2024 and 25 August 2024. The February 2024 meeting was halted following applications by Dr Costa and Ms Bassil, with Dr Costa later withdrawing from those proceedings.
Subsequent attempts by the Community to progress an expressions-of-interest process and convene a further meeting in August 2024 were also met with court action. Members were to vote on proposals including a $64 million offer from a Coles-related group, a $54 million offer from a Woolworths-related group, and a $53 million offer from Futura, each involving provision of a replacement club.
Dr Costa and Ms Bassil commenced further Supreme Court proceedings seeking to restrain members from meeting and voting. None of the injunction applications proceeded to a final hearing to test the affidavit evidence.
The cumulative effect of these proceedings was that the Community was repeatedly unable to convene members, exercise control over its assets, or make decisions about its financial future.
Receivership period and operational impact
In August 2024, after three failed attempt to convene members meeting and vote, Cyprus Capital Ltd – board consisting of Dr Costa, Ms Bassil and John Stassi – sought orders to backdate and register additional security over Community assets and to appoint a receiver.
The Community has stated it did not have the funds to oppose those applications.
On the eve of the hearing, the Community appointed voluntary administrators, citing insolvency and the need to protect assets and members’ interests. A receiver was subsequently appointed by Cyprus Capital Ltd.
The Community has said that, as a consequence, a number of planned and publicly advertised cultural and community activities were cancelled during that period, which it maintains caused operational disruption and reputational harm.
Earlier Supreme Court findings
Challenges to the administration were previously brought before the NSW Supreme Court by Dr Costa and Cyprus Capital Ltd, seeking to remove the administrators while retaining the Cyprus Capital Ltd receiver and reinstating alternative governance arrangements.
Those claims were rejected, with Justice Black finding that the Board was lawfully constituted, that the Community was insolvent at the relevant time, and that the appointment of administrators was lawful. Costs were ordered against Dr Costa and Cyprus Capital Ltd.
In later proceedings, the Supreme Court considered issues relating to the necessity and outcomes of the receivership, including costs and the extent to which assets were realised.
Operational impact and shareholder concerns
Some of the earlier proceedings arising from the Cyprus Community dispute were commenced by Dr Costa in his capacity as a director of Cyprus Capital Ltd.
The litigation has prompted shareholder scrutiny of legal costs, the absence of full distributions, and the transparency of litigation and receivership expenses. Shareholders have queried why a receiver was appointed to operate a non-revenue-generating charitable entity, whether that role served the interests of creditors, and how it was intended to contribute to repayment of the outstanding debt.
Shareholders have questioned whether the legal steps taken were necessary, noting that existing mortgage security was ultimately sufficient to enable repayment through the administrators without prolonged receivership or further litigation.
Dr Costa, Ms Bassil and Mr Stassi are scheduled to appear before the Local Court at the Downing Centre on 20 January 2026 in proceedings commenced by the Australian Securities and Investments Commission relating to alleged breaches of statutory financial reporting obligations.
Current position unchanged
Despite the latest Federal Court filing, the administration of Cyprus Community of N.S.W. (Holdings) Limited remains in place. No hearing date has been set, no interim orders have been made, and the administrators continue to manage the company’s affairs pending further directions from the Court.
The Greek Herald will continue to monitor developments and report on any material changes.
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