(10 February 2010 – Australia) Westpac has filed a court action to enforce a personal guarantee signed by developer John Fish to recover a A$8.6 million debt, reported the Gold Coast Bulletin News.The debt, which amounted to A$9.6 million in December last year, has been reduced after several property settlements.
Court documents, filed this week, indicate that Westpac issued a letter of demand to Mr Fish on January 18th requesting he repay the debt by January 25th.
In December, Westpac appointed receivers for 28 villas built by Mr Fish’s company Rothmont Projects, according to Gold Coast Bulletin News.
However, when Westpac appointed the receivers, Mr Fish insisted Rothmont had paid all interest that was due on the facility and that the company had the cashflow to pay down the remaining debt.
Despite the debt repayment deadline falling at the end of February, Westpac, in court documents, said that the loan facility had been defaulted on resulting in December’s appointment of the receivers.
Westpac also said in court documents that the defendant has failed and/or refused to comply with the guarantee demand.
The bank also said the debt had fallen to A$8.6 million at February 5th.
The remaining 25 villas, located within the Marina Quays project on Sickle Avenue, are to be taken to auction on Thursday by the receivers.