The ongoing legal dispute surrounding the Cyprus Community of NSW Limited has taken another turn, with new legal filings indicating that Cyprus Capital Limited and Dr Costas (Con) Costas are actively pursuing further legal action following the Supreme Court of NSW’s 18 December ruling.
Legal Actions and appeal plans
Cyprus Capital and Costas Costa have recently filed two key legal documents on 23 December 2024. The first is a Notice of Intention to Appeal the decision of Justice Ashley Black, which validated the appointment of voluntary administrators to the Cyprus Community of NSW. The second is an Interlocutory Application under Corporations Law, which is set to be heard in the Supreme Court on 3 February 2025.
The Notice of Intention to Appeal, filed with the Supreme Court of NSW Court of Appeal, lists the Cyprus Community of NSW Limited and Morgan Kelly, the administrator from EY, as prospective respondents. However, no formal appeal has yet been lodged, leaving the legal status of the challenge uncertain.
Refinancing proposal and potential end to receivership
The administrators filed an application on 29 January 2025 in the Supreme Court of NSW seeking approval for a refinancing proposal. The proposed refinancing aims to discharge all current secured debts, including loans from Cyprus Capital Limited and The Trust Company (PTAL) Limited, which acts as an agent for Sydney Wyde Mortgage Management Limited. One of the Cyprus Capital loans is due for repayment in March 2025, and the company does not have sufficient funds to meet this obligation, making refinancing necessary.
If approved, the refinancing would allow the company to cease incurring ongoing costs associated with the administration and receivership. Additionally, full repayment of Cyprus Capital’s debt would result in the retirement of the Receivers, reducing the financial strain on the Cyprus Community of NSW.
The administrators have received a confidential conditional term sheet and letter of offer from a prospective financier who is prepared to provide funding upon acceptance. The administrators believe this to be a commercially viable solution that serves the best interests of the company, creditors, and members.
Dispute over financial obligations
A key point of contention remains the payout figure, which refers to the total amount required to fully repay Cyprus Capital’s secured loan facilities, including principal, interest, and any associated fees. The administrators had previously demanded this figure be provided, arguing that failure to do so would warrant legal action. However, the legal representatives for Cyprus Capital stated that the external accountant responsible for calculating the payout was on leave and that they could not provide a full response yet.
Furthermore, they argued that the secured debts owed to Sydney Wyde and Cyprus Capital are not immediately due. Interest on the Sydney Wyde loan is capitalised until June 2025, while Cyprus Capital is open to extending loan terms.
The legal representatives also proposed a meeting to discuss a potential resolution, including the retirement of the Receivers and Managers, but urged the opposing side to delay any further court applications until a more substantive response is provided.
What happens next?
The deadline for Cyprus Capital to provide the payout figure, as requested by the administrators, is approaching. The Supreme Court is now scheduled to hear both the Interlocutory Application on 3 February 2025 and the refinancing proposal submitted by the administrators.
If the refinancing is approved, it could significantly impact the direction of the legal battle by eliminating the need for receivership and addressing financial concerns. However, if an appeal is formally lodged, it could further extend legal proceedings and impact the governance and financial future of the Cyprus Community of NSW.
This legal battle remains a pivotal moment for the future of the Cyprus Community of NSW, with significant consequences for its leadership, financial stability, and community operations.
The Greek Herald will continue to provide updates as the case unfolds.
