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The estimated amount owed to creditors by Wagga property investment firm Kahlefeldt Securities has more than doubled to $36 million in the four weeks since the company went into administration.
Kahlefeldt Securities is co-owned by Wagga couple Brian and Joy Kahlefeldt, both aged in their 90s, who are well-known in the Riverina for their philanthropy.
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The company had a track record for delivering returns to investors from residential property development in Wagga and Sydney.
However, in July the NSW Supreme Court approved the company being put in administration on the advice that Brian and Joy could no longer serve as directors for health reasons and the company was “likely to become insolvent”.
The Daily Advertiser has identified multiple creditors from Wagga or the Riverina, who have claimed to be owed at least $6 million in total.
In a report dated August 1 and obtained by The Daily Advertiser, Kahlefeldt Securities administrator Shabnam Amirbeaggi advised creditors that there were now 170 unsecured claims for a total of $36 million.
The administrator’s partial count of claims last month totalled $15.8 million.
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Creditors were told their current expected return was 75 to 78 cents on the dollar but a substantial portion depended on the completion of luxury units on Cowan Road in Sydney’s Upper North Shore.
“If the [project] is not completed, the dividend return from the realisation of other company assets, is estimated to be up to 20 cents in the dollar,” the report stated.
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Wagga O’Halloran Deal Commercial Lawyers principal Anthony Deal, who is representing six retiree creditors, said his clients were “carefully watching and waiting to see how it plays out”.
“They are happy that there is information flowing and the administrator is doing their job,” Mr Deal said.
“[The luxury units on Cowan Road] are the chief asset, there’s no doubt about that.”
Creditors were told Kahlefeldt Securities had an estimated $7.4 million in cash and was owed $5.5 million.
One of the debtors was CRK Holdings, a company operated by Brian and Joy’s son Paul Kahlefeldt, that experienced its own financial difficulties in 2020 while proposing a 17-storey “Riverside” apartment building on Wagga’s Sturt Street.
Kahlefeldt Securities lent CRK Holdings $700,000 towards a development at Surfers Paradise and more than $691,000 had been repaid, but the interest had been written off by the administrator.
Ms Amirbeaggi’s firm, Crouch Amirbeaggi, declined to comment on the report, but did confirm that the Kahlefeldt Securities’ administrator it was aiming for a 75 to 85 cent return.
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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
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