Your digital subscription includes access to content from all our websites in your region. Access unlimited content, the digital versions of our print editions – Today's Paper, as well as The Daily Advertiser and The Border Mail apps.
Riverina investors face losing part of their life savings after a development company run by a prominent Wagga couple was placed in administration owing creditors at least $15.8 million.
Respected residents Brian and Joy Kahlefeldt, aged 94 and 90 respectively, each own half of Kahlefeldt Securities, a company with a long track record of successful property investments.
Advertisement
The beloved couple are also known for their philanthropy, with Lilier Lodge, Country Hope and the Riverina Cancer Care Centre among the charities to benefit from their generosity.
But last month the NSW Supreme Court approved an order from the Kahlefeldts’ daughter, Joanne Susan Kahlefeldt-Harris, to have the company placed in administration on the advice it was “likely to become insolvent”.
The court ruled that “urgent action” to protect creditors was required as Mr and Mrs Kahlefeldt were no longer able to run the company due to health reasons.
Kahlefeldt Securities is facing hundreds of claims ranging from $1300 to more than $900,000 from investors, including from family superannuation funds, according to documents lodged with ASIC.
Wagga O’Halloran Deal Commercial Lawyers principal Anthony Deal, who is representing six retiree creditors, said his clients had relied on Kahlefeldt dividends.
“There’s no doubt it has come as a shock to the creditors; especially those who had a substantial portion of their life savings invested with the company,” Mr Deal said.
Advertisement
“Some of my clients have had funds invested with the company for over 25 years and have relied on the regular interest payments as their primary source of income.
“While the company is in administration they won’t receive these payments.”
One accounting firm is representing some of the creditors from Wagga and the Riverina with claims totalling $5 million.
The NSW Supreme Court heard the company spent significant funds on developing an apartment block in Cammeray, on Sydney’s lower North Shore, that ran into completion difficulties.
The company’s other Sydney project, for seven luxury residential units in St Ives on the upper North Shore, was about 60 per cent complete.
Administrator Shabnam Amirbeaggi of Crouch Amirbeaggi Insolvency and Business Services has moved to sell Kahlefeldt Securities’ multiple properties in the Wagga suburbs of Lloyd and Bourkelands.
One Riverina creditor, who spoke on condition of anonymity, said he hoped to recoup 80 cents on the dollar from the $20,000 he had invested.
“I particularly feel for those who have put all their eggs in one basket. Fortunately for my family, I didn’t,” the creditor said.
The creditor said he was grateful Ms Kahlefeldt-Harris had sought an administrator at an early stage.
A Wagga creditor, who invested about $90,000, said he was impressed by the administrator’s work and hoped the “very well run” company would continue trading.
Advertisement
Mr Deal said Ms Amirbeaggi’s preliminary view was that the company could return north of 75 to 80 cents on the dollar.
“There’s no guarantee on that percentage being achieved of course, as it will depend on market factors affecting the company’s current projects, including building costs and Sydney property prices,” he said.
Crouch Amirbeaggi acknowledged the “shock and concern” felt by creditors.
“It is too soon to determine the rate of return to the creditors and investors; however, completion of the [St Ives] project will allow for the best possible return,” the firm stated.
Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content:
Advertisement
Journalist for the Daily Advertiser in Wagga Wagga covering politics and data. Mobile: 0437 853 137 Email: rex.martinich@dailyadvertiser.com.au
Journalist for the Daily Advertiser in Wagga Wagga covering politics and data. Mobile: 0437 853 137 Email: rex.martinich@dailyadvertiser.com.au
Advertisement
Sign up for our newsletter to stay up to date.
We care about the protection of your data. Read our Privacy Policy.
Advertisement
Recent Comments