Salim Mehajer has insisted it is "absolutely, totally incorrect" to suggest he lied about holding a 5.30am meeting to oust the director of two of his troubled companies, as he made a tense appearance in the Supreme Court witness box.
The colourful property developer and former deputy mayor of Auburn is fighting the appointment of administrators to his companies Sydney Project Group Pty Ltd and S.E.T. Services Pty Ltd.
More NSW News Videos
- Video duration
- 00:51
Creditors chase Salim Mehajer for $97 ...
Creditors chase Salim Mehajer for $97 million
The property developer's lawyers say his companies only have $32,000 in the bank, as Mehajer tries to halt the appointment of administrators.
Up Next
Man arrested over alleged murder of Hamad Assaad
- Video duration
- 00:36
- Video duration
- 00:36
Man arrested over alleged murder of Hamad ...
Man arrested over alleged murder of Hamad Assaad
A 24-year-old man has been arrested in Greenacre in connection with the execution of crime figure Hamad Assaad.
Up Next
Winter isn't coming, it's already here
- Video duration
- 00:34
- Video duration
- 00:34
Winter isn't coming, it's already here
Winter isn't coming, it's already here
After a mild start to the season, Sydney is facing a cold front with temperatures dropping to single digits.
Up Next
This is bigger than a leaflet: Di Natale
- Video duration
- 01:27
- Video duration
- 01:27
This is bigger than a leaflet: Di Natale
This is bigger than a leaflet: Di Natale
The Greens vote to exclude NSW senator Lee Rhiannon is not just about the anti-Gonski leaflet she approved, but deeper issues within the party, according to leader Richard Di Natale.
Up Next
Stolen Generations lesson attracts controversy
- Video duration
- 01:17
- Video duration
- 01:17
Stolen Generations lesson attracts ...
Stolen Generations lesson attracts controversy
A Catholic school is facing strong backlash after students were told they would be taken from their parents as part of a lesson about the Stolen Generations. Vision: Seven News
Up Next
Greens senator suspended
- Video duration
- 01:05
- Video duration
- 01:05
Greens senator suspended
Greens senator suspended
Senator Lee Rhiannon will be barred from taking part in some Greens party room decision making until her NSW wing makes a series of reforms.
Up Next
Under-7's footy match turns ugly
- Video duration
- 01:17
- Video duration
- 01:17
Under-7's footy match turns ugly
Under-7's footy match turns ugly
A man will face court after a sideline brawl broke out among spectators at an Under 7s rugby league match in Oatley. Vision: Seven News
Up Next
Man charged with 'up-skirting' at Woolworths
- Video duration
- 02:02
- Video duration
- 02:02
Man charged with 'up-skirting' at ...
Man charged with 'up-skirting' at Woolworths
Bibek Guragain, who worked at the supermarket in Surry Hills, was accused of filming female colleagues using the toilet.
Creditors chase Salim Mehajer for $97 million
The property developer's lawyers say his companies only have $32,000 in the bank, as Mehajer tries to halt the appointment of administrators.
The Supreme Court in Sydney has heard the companies owe almost $100 million to creditors and have just $32,000 in the bank.
Mr Mehajer has told the court he held a meeting at 5.31am on Friday, June 16, to oust the sole director of the companies, Kenneth Lee, about 12 hours before Mr Lee sought to appoint administrators to the companies.
He claims the administrators were not validly appointed by Mr Lee because he had already installed his sister, Khadijeh "Kat" Mehajer, on the board in Mr Lee's place.
Ian Pike, SC, for the administrators, put it to Mr Mehajer repeatedly on Thursday that he did not hold the meeting at that time.
"That is absolutely, totally incorrect," Mr Mehajer replied.
Mr Mehajer said the meeting was held at his office in Sefton and was attended by his sister, along with his personal assistant and his solicitor.
"You got everybody up at 5.30am, did you?" Mr Pike said.
"It was normal practice during Ramadan, yes," Mr Mehajer replied.
He said he pre-prepared minutes resolving to remove Mr Lee from the companies' boards on his bookkeeper's computer.
Asked why he had not produced the Word document in court, Mr Mehajer said it was "not available" and "it wasn't saved".
Mr Mehajer said it was "only a one-pager" and he then scanned the document and saved it on his own computer.
Mr Pike submitted that the meeting "did not occur". But Mr Mehajer's barrister, Marcus Young, SC, told the court "Mr Mehajer's evidence had the ring of truth about it."
Mr Young said it was normal for property development companies to "borrow a lot of money" and the main asset was the development.
The court heard Kat Mehajer could not attend court because her newborn son was "having trouble breathing" and she was "emotionally distressed".
Documents tendered in court show Hong Kong-based financier SC Lowy sought "immediate repayment" of an $83 million debt facility on June 16.
Among the other debts claimed by the companies' creditors is $400,000 by Sydney law firm Madison Marcus. Mr Lee works for the firm's financial advisory arm.
Text messages shown in court reveal Mr Mehajer texted Mr Lee hours after he claimed to have held the 5.30am meeting, seeking Mr Lee's "authority" to run court proceedings to set aside SC Lowy's statutory demand for repayment of the funds.
Mr Lee replied that he was "seeking legal advice on this as I'm uncomfortable having my name against".
Mr Mehajer then said Mr Lee could, "with no pressure, just resign and I'll sign what is required to release you from anything".
Asked why he was asking Mr Lee to resign if he had already removed him from the board at the 5.30am meeting, Mr Mehajer said it did not become "official" until it was lodged with the corporate regulator on Sunday.
Mr Mehajer is asking Justice Stephen Robb to make a declaration that the administrators were invalidly appointed.
Justice Robb reserved his decision.