The financial future of the Cyprus Community of NSW (CCNSW) remains under a cloud, with conflicting statements emerging from Cyprus Capital Ltd (CCL) and the administrators, Ernst & Young (EY), over a $1.092 million sum currently withheld and paid into court.
In recent weeks, both parties have issued detailed correspondence to stakeholders. The CCL Board wrote to shareholders on 21 March 2025, alleging that the administrators had underpaid their entitlements and that delays in resolving the dispute were preventing shareholder returns, including an expected “uplift” on their investment.
In response, EY issued a public update to CCNSW members on 7 April 2025, rebutting several claims and providing a breakdown of the disputed amount.
CCL’s Position: Uplift payments withheld
In its letter to shareholders, CCL claimed it had repaid investors their original capital plus 3% interest but could not yet distribute the anticipated uplift because EY had not transferred the full loan repayment amount. CCL asserted that EY used outdated figures from November 2024 and ignored updated payout calculations provided in February 2025, just prior to the court-approved refinancing.
CCL also said it had provided the administrators with evidence of additional enforcement costs, receiver fees, and updated interest calculations. However, according to the letter, EY refused to break down the withheld $1.091 million and instead paid the amount into court, pending resolution.
The board criticised EY’s legal approach, suggesting that the matter could have been narrowed through negotiation and that court action was costly and unnecessary. It noted that nearly $500,000 of the withheld amount related to receiver and manager fees, which CCL disputed had ever been agreed or approved.
EY Responds: Disputed amount clearly defined
In its 7 April update, EY firmly rejected the claim that it had failed to explain the withheld amount. The administrators said they had made 13 separate attempts since November 2024 to obtain a clear payout figure from CCL, including legal enforcement costs, and only received the necessary information under court order in February 2025.
EY stated that the amount paid to CCL on 28 February 2025—$5,846,603—included the full principal plus the agreed 30% interest uplift for the major loan component, as well as 10% on a smaller related facility. These figures, they said, came directly from CCL’s own legal representatives.
EY detailed the $1.092 million currently in dispute and held in court as follows:
- $492,742: Claimed Receivers and Managers’ fees (disputed) — referring to Neil Cussen and Michael Billingsley
- $383,833: Enforcement costs and legal fees claimed by CCL
- $215,748: Discrepancy between November and February payout figures
The administrators maintain that these amounts require court oversight due to inconsistencies and late-stage changes in CCL’s claims, and to ensure transparency and protection of CCNSW’s interests.
Looking ahead
The back-and-forth has added complexity to an already fraught administration process. While CCL had requested a response from EY by 28 March to avoid further delays, EY’s public response did not suggest any change in its legal course.
As it stands, the withheld funds remain with the Supreme Court of NSW. The final outcome may not be determined until further proceedings clarify the legitimacy of each disputed component.
For members and stakeholders, this latest dispute underscores the lingering tension between the previous lenders and current administrators. With an expected exit from administration now delayed until mid-year, the Cyprus Community of NSW must await the resolution of these financial disagreements before turning the page.
