NSW

Save
Print
License article

Salim Mehajer denies lying about 5.30am meeting in face-off with administrators

18 reading now

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.

Up Next

Man arrested over alleged murder of Hamad Assaad

null
Video duration
00:36

More NSW News Videos

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.

Advertisement

"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.