Liquidators of Bill Papas’ Forum Group sell scrap machines built by subsidiary
The liquidators of the Forum group of companies have sold nearly 600 abandoned waste digesters built by waste treatment subsidiary Iugis.
McGrathNicol reportedly received the funds from alleged buyer New Leaf Technologies (NLT) on Thursday.
Former Iugis consultants set up NLT in 2019, but the key figures have been operating in environmental finance since 2009.
NLT managing director Matt Wildsoet said he has big plans for the company and the potential for waste digesters.
“We are delighted to be able to continue the good work and the principles of the company and the desired results from an environmental point of view,” he said.
“The hard work that has been done, we want to continue and we are delighted to be able to do that.”
NLT, similar to the Forum Group, offers its clients assistance in obtaining financing and providing financial solutions to develop and finance “sustainable operations and infrastructure”.
Nearly 300 of the machines sat for months in a warehouse in western Sydney, after being shipped from Iugis’ manufacturing site in Thessaloniki.
A further 300 machines are in service across Australia with former Iugis customers.
Customers linked to the machines include private hospitals, the Pullman Hotel in Hyde Park and Sydney pub The Fiddler.
The buyer also obtains the right to continue to service the machines rented by customers, under an agreement similar to that concluded to sell the printer rental business at the heart of the Forum Group.
But the long-talked-about deal has dragged on for months, with the final sale requiring approval from Forum creditors.
Proceeds from the sale are being used to repay Forum Group creditors, who owe nearly $400 million after the company collapsed with allegations that former chief executive Bill Papas oversaw a year-long scheme to defraud financiers through a false rental invoice scheme.
The Federal Court heard allegations that Mr. Papas funded the Iugis company, which manufactured and supplied the waste digesters, under the program.
Papas set up a manufacturing site in Greece, together with business partner Anastasios Giamouridis, to manufacture the machines.
The site no longer works.
Westpac named Giamouridis in its case, alleging he received $10.7 million in funds to which he was not entitled.
Giamouridis also owns at least one percent of Mazcon, a legal entity used by Papas to buy Greek football team Xanthi FC.
Until recently, Giamouridis was also CEO of Xanthi FC, but he stepped down and was replaced at the team’s recent annual general meeting.