Lenders owed more than $98million

TWO companies that owned what was meant to be the state’s biggest employment development site at Kurri Kurri have been placed into liquidation, owing more than $98million to lenders and about $800,000 to creditors.

The NSW Supreme Court has ordered HEZ Nominees Pty Ltd and HEZ Pty Ltd be wound up, in line with applications from receivers who were appointed in early February 2010.

The companies, previously controlled by Hardie Holdings, owned land at the 870-hectare Hunter Economic Zone, which the former Labor government allocated for up to 14,000 jobs.

In making the orders, Justice David Hammerschlag noted HEZ Nominees owed a consortium of lenders more than $98 million.

HEZ Pty Ltd was the guarantor and provided security in the form of property.

As well, ‘‘both...are indebted to other unsecured creditors for some $800,000 in respect of which there is no prospect of satisfaction,’’ Justice Hammerschlag said.

‘‘Both companies are clearly insolvent.’’

The list of unsecured creditors may include Cessnock City Council, which is known to have been owed about $500,000 in rates soon after receivers were called in, but it declined to comment yesterday on whether it was out of pocket.

The fate of the land at the site was also unclear. Newly-appointed liquidator Murray Campbell-Smith said he believed it may have already been sold by the receivers but was awaiting information.

A spokesman for the receivers Ernest and Young could not be reached.

The economic zone site was intended to attract large-scale job-generating developments, but had a complex web of planning controls and was the source of conflict between former Cessnock MP Kerry Hickey and Cessnock City Council.

Cessnock City Councillor James Ryan said yesterday the site was never a good place for an industrial site and had failed to attract investors. It also had subsidence problems.