Vellar company in court battle

Frank Vellar, left, and the Regent St complex.Owners of a Wollongong apartment complex are taking legal action to wind up a Vellar construction company over money it owes for repairs to defective building works.An application to wind up Oberon Property Holdings Pty Ltd, which changed its name from Vellar Constructions Pty Ltd in August 2008, was heard in the Supreme Court yesterday.The company’s two directors include disgraced developer Frank Vellar and another family member, Elide Vellar. Frank Vellar faces another legal dramaThe owners’ corporation of 7 Regent St are taking the legal action in an attempt to recover a $135,000 payout awarded by the Consumer, Trader and Tenancy Tribunal on March 13. The sum included the cost to repair the building and legal costs. None of the money has been paid.Owners of the 50 units took action after water began leaking into the building around 2005-06. After the tribunal ruled in the residents’ favour and the construction company failed to pay within the allowed time, the owners’ corporation took the case to the District Court. They obtained a default judgment on April 24, ordering the company to pay up. When the company still did not pay the damages, the application to place the company into liquidation was lodged with the Supreme Court.A representative for a second creditor also owed a substantial sum – Smorgan Steel – appeared in court yesterday to support the application to wind up the company.Another secured creditor, the ANZ bank, was also represented.Oberon Property Holdings’ solicitor asked for a two-week adjournment, suggesting the company was not insolvent and should not be wound up. He said it would take two to three weeks to obtain an accountant’s report into the company’s finances.Access Law Group solicitor Darrin Mitchell, representing the owners’ corporation, opposed the adjournment.He said it was “hard to believe” Oberon Property Holdings had only become aware of the legal action recently, despite the application being lodged more than a month ago. Mr Mitchell told the court he had instructions to proceed as “the defendant does not appear to be serious about this matter”.Senior deputy registrar Andrew Musgrave allowed the adjournment but said any future attempts to adjourn the case would need to be supported with evidence. The case will be mentioned in the Supreme Court on August 25.
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