A new document filed with the watchdog reveals that ousted construction and development giant Grocon has more than $ 90 million in outstanding loans to executive chairman Daniel Grollo and his wife Katherina and the entities he control ultimately.
The revelation comes ahead of the crucial second creditors meeting later this month that will decide Grocon’s fate, with much of the company now in the hands of KordaMentha directors.
The latest documents filed with the Australian Securities and Investments Commission include a $ 63 million loan to Mr Grollo and his wife Katherina from a Grocon entity under administration. Combined with other loans made to Mr. Grollo or to entities he ultimately owns, more than $ 90 million has been loaned to the Real Estate Scion by entities under administration.
The loan of $ 63,171,793 to Twenty Twenty 2 Family Trust is included in a Grocon Group Holdings Business Activities and Ownership Report (ROCAP) filed with ASIC on March 9.[dm-listing-recommendation experimentname=’midcontent-listings’ positiononpage=’midcontent’]
Grocon Group Holdings is the parent entity of the construction company headed by Mr. Grollo and is part of a second group of 45 group companies, which went into receivership at the end of February. A total of 87 Grocon companies are under administration.
Twenty Twenty2 Pty Ltd as trustee of the Twenty Twenty2 trust is jointly owned by Mr. Grollo and his wife Katherina Grollo. It is not being administered.
A previous ROCAP report for Grocon Pty Ltd, one of the first 39 companies to take administration in November, revealed an $ 11.5 million loan to Mr. Grollo and a $ 4.9 million loan to Ploutus Pty Ltd, a subsidiary of CSFM Pty Ltd which is jointly owned by Mr. Grollo and Katherina Grollo.
The same ROCAP report also includes loans totaling $ 11.6 million to Grocon Funds Management, GFM Investment Services and GFM Delivery Services, all subsidiaries of companies ultimately owned by Mr. Grollo.
A spokeswoman for Grocon and Mr Grollo declined to comment.
Grocon’s unsecured creditors, who owe around $ 125 million, will vote later this month on whether to back the company deal (DOCA) proposed by Mr Project in Sydney and then pay off creditors to from the product.
The alternative would be to liquidate the group, which would allow the liquidators to chase the assets of other unadministered related companies.
ASX-listed fund manager APN Property is pushing for the liquidation of the Grocon empire as it seeks to recoup around $ 20 million on a joint venture office project with Grocon that has gone sour.
APN representative Anthony Simpson noted that the $ 63 million loan was only disclosed as part of the ROCAP document filed with ASIC on March 9 and was not disclosed during the first meeting of the creditors of the second batch of 45 Grocon companies in administration held on March 4.
“The question is, where did all this money go and where is it now? Mr. Simpson said.
“APN has said from the outset that it demands full transparency and disclosure from Daniel Grollo, so a full explanation of where this money is going is essential to the voluntary administration process.”
A spokesperson for KordaMentha declined to comment.[dm-listing-recommendation experimentname=’below-content-listings’ positiononpage=’belowContent’]