looks like Ashington might be the ones in trouble here
From The Sunshine Coast Daily
30th July 2010
THE Sheraton Noosa Resort and Spa is in danger of being placed in liquidation because of a legal dispute between its two owners.
But the hotels general manger, Stephen Ferrigno, said yesterday that in the unlikely event that the property went into liquidation, agreements were in place which would keep the doors open.
However, Mr Ferrigno said the dispute bet-ween the hotels owners Sydney-based property fund manager Ashington and the listed Valad Property Group had put on hold the main elements of a $12 million redevelopment of the ageing property.
It was reported yesterday that the NSW Supreme Court recently rejected an application by entity Ashington Capital Pty Ltd to wind up Noosa Venture 1 Pty Ltd, which is jointly controlled by Ashington and Valad.
Noosa Venture owns the Sheraton Noosa.
However, in his judgment, Justice Paul Brereton said the property could be wound up if the dispute resolution procedures were exhausted.
The move to have the hotel liquidated followed an ongoing dispute between Ashington and Valad over the commitment of future funds for the hotels proposed upgrade.
It is one of four court cases that has been or is being fought between the two companies.
The NSW Supreme Court last week ordered entity Ashington Pty Ltd which is part of the groups development and property funds management structure wound up over unpaid legal fees.
Mr Ferrigno said it would be business as usual even if the property was sold, with a change of letterhead and ABN number all that would happen.
Weve got agreements in place that effectively protect the operation in the hotel, enabling us to function as normal, he said.
Its regrettable that this action is taking place.
However, we look forward to a swift resolution to allow improvement projects to proceed.
The operation of the hotel remains unaffected in its day-to-day operation.
This impact is really at the owner level and unrelated to the operation of the hotel.
Mr Ferrigno said the redevelopment of the 21-year-old property, including a refurbishment of the rooms, would place it among Australias best five-star hotels.
He said other less costly improvements had not been affected by the legal battle.
It is understood the matter is due back in court on Wednesday for a final judgement.
Valad purchased the Noosa Sheraton for $93.6 million in 2007.
Weve got agreements in place that protect the operation in the hotel, enabling us to function as normal. Stephen Ferrigno
more ifo from http://www.sunshinecoastdaily.com.au/story/2010/07/30/sheraton-noosas-12-million-plan-jeopardy/
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