OAK CAPITAL STATEMENT IN RESPONSE TO HERALD SUN ARTICLE BY MICHAEL WARNER
DATED 6 MAY 2022.
In April 2019 MW Assets Pty Ltd, Moody Aboughattas (including Kathryn Aboughattas), Stephen Kernahan, Craig Bradley, and others (MW Assets Group):
- (a) borrowed $2.85M (Principal Amount) from Oak Capital Mortgage Fund Ltd (Oak) and First Mortgage Capital Pty Ltd (FMC) for a period of 12 months (Oak/FMC Loans);
- (b) used the Principal Amount to pay debts that were in default with Wentworth Capital Pty Ltd (Wentworth Capital Facility);
- (c) retained Mills Oakley Lawyers to act for them on the refinance of the Wentworth Capital Facility and provide advice on the security documents for the Oak/FMC Loans.
- (d) represented that they would repay the Oak/FMC Loans through a combination of selling and refinancing assets.
Following settlement of the Oak/FMC Loans Moody Aboughattas (now a bankrupt) sold a property in Queensland with the sale proceeds paid to the Commonwealth Bank of Australia. A Victorian property was also sold by the MW Assets Group repaying approximately $1.5M of the Oak/FMC Loan.
Despite only having repaid $1.5M of the Principal Amount the MW Assets Group commenced legal proceedings in the Victorian Supreme Court against Oak and FMC to avoid further repayment of the Oak/FMC Loans (Proceedings). Subsequently the MW Assets Group also lodged complaints with the Australian Financial Complaints Authority which were later dismissed on jurisdictional grounds.
Despite using money obtained from Oak and FMC to repay the Wentworth Capital Facility, the MW Assets Group has not made any further attempt to repay the Oak/FMC Loan.
Oak and FMC continue to defend the Proceedings and seek repayment of the Oak/FMC Loans on behalf of its investors.
The matter remains before the Court.