A growing power struggle within the Cyprus Community of New South Wales (The Cyprus Club) has exposed deep factional divisions, including among directors of Cyprus Capital Limited. This conflict escalated after Cyprus Capital’s unexpected appointment of receivers on October 14, 2024. The move comes despite Ernst & Young (EY), the voluntary administrators, stating the club was not insolvent, raising questions about the motives behind the receivership.
EY announced to members on October 15 that Neil Cussen and Michael Billingsley from Olvera Advisors have been appointed as Receivers and Managers of the Cyprus Community of NSW by Cyprus Capital Limited, one of the club’s major creditors. This decision transfers control of the community’s key assets, including the Cyprus Club and surrounding properties, to the Receivers, who are solely tasked with securing repayment of the community’s debts.
This follows earlier turmoil surrounding the charge over the entire site by Cyprus Capital, leading to a struggle for control and has resulted in a deadlock.
This impasse stems from two injunctions brought by Dorothy Bassil, a director of Cyprus Capital, which “restrained” members from voting on resolutions in the Notice of General Meeting scheduled for August 25 this year regarding the sale of the Stanmore property. These actions necessitated the involvement of external administrators to help resolve governance and financial issues within the Cyprus Club.
A meeting between the Receivers and Administrators is scheduled this week to discuss the future course of action, including plans for the ongoing operation of the Cyprus Club. The Administrators will remain involved but will have limited control over the community’s assets while the Receivers are now under the control of the Club’s operation and trading, and dealing with the Club’s premises, adjoining terraces and land.
Members have expressed concerns to The Greek Herald questioning the motives of Cyprus Capital’s directors regarding the appointment of a receiver, including potential intentions to take control of the Club and the possible sale of its assets, including surrounding properties. Shareholders also noted they were not informed of the decision to appoint receivers and fear that selling “non-core property” could reduce the site’s overall value. Although EY has said the community’s key operations such as the language school, dance classes, taverna, and kafeneio (café) will continue, the Community remains anxious about its future.
In a statement issued by Cyprus Capital, it explains that the appointment of a receiver is intended to safeguard shareholder interests following the earlier decision to appoint voluntary administrators. Cyprus Capital said it intends to work with the administrators to develop strategies that protect the club’s assets, “whilst managing the ongoing business operations of the Cyprus Community of NSW including, maintaining programs and working to maximise income.”
Members of the Cyprus Community have been informed of these developments, with updates expected following further discussions.
The Greek Herald will continue to provide coverage of this developing situation.
*The Greek Herald has contacted Cyprus Capital director Dorothy Bassil for comment. At the time of publication, there was no response.
