Receivers are holding some $40 million after the wind-down of Villa Maria Estate’s assets. They are entitled to keep $5.16 million in their back pocket to cover expected legal costs defending claims by Villa Maria director Sir George Fistonich that company assets were sold too cheaply, the High Court ruled. He complains money belonging to him is being used to defend legal claims brought by him.
Concerns over Sir George’s management of wine company Villa Maria led to creditors ANZ Bank and Rabobank joining forces to ease him out of the job and to organise an orderly sell down of company assets. The High Court was told he was removed from daily management from 2019. He subsequently agreed to sale of the business, but retained a right of veto over any sale. It was his 2020 veto of a proposed $247 million sale which propelled Villa Maria into receivership. Receivers subsequently sold the assets for $265 million. Nearly $40 million is left after paying off creditors. This surplus, after payment of remaining receivership expenses, goes to Fistonich family interests.
Sir George alleges Villa Maria assets were sold too cheaply. He is suing receivers Calibre Partners for damages. He said Calibre should not be allowed to dip into the remaining $40 million dollars to pay for their own legal expenses defending a claim for negligence.
Justice van Bohemen ruled a receiver’s right to be paid out of receivership assets for receivership expenses extends to legal expenses defending claims. But if the receivers are found to be liable, they must pay back any receivership money used to fund their defence, he said.
Sir George’s claim against Calibre Partners is yet to go to trial in the High Court.
Fistonich v. Gibson – High Court (16.06.22)
22.106