Passage liquidator unravels resort’s tangled web

A TOWNSVILLE liquidator is investigating what he says are the “murky schemes” behind the 2015 acquisition of the Port Hinchinbrook resort and marina development near Cardwell.

A key focus is the roles played by Craig Gore, a former high-flying developer who has been permanently banned from providing financial services, and lawyer Daniel Clarke, a former partner to the now defunct Clamenz Lawyers. Michael Brennan of Offermans is liquidator to The Passage Holdings, which bought the resort in 2015 but then fell into financial difficulties and legal wrangles in 2017.

Mr Brennan has been trying to piece together what occurred and a way forward for the development, where about 150 homes have been developed, for the past three years.

In his latest report to creditors, Mr Brennan describes Port Hinchinbrook as “a tale of broken dreams and murky schemes”. Passage Holdings signed to buy the resort’s marina and unsold land in 2015.

The deal settled in 2016 after two entities registered in the British Virgin Islands, Sino-resource Imp & Exp Co and Oakland Investment Group, entered into loan agreements with Passage Holdings, both worth about $4.1m and secured by mortgages over the property.

In a legal case brought by Sino in 2017, Queensland Supreme Court Justice James Henry later found Oakland’s loan was a sham and that “there was in fact no such loan”.

An appeal was later dismissed and Oakland was removed as a secured creditor.

Sino and the Cassowary Coast Regional Council, which Mr Brennan’s report says is owed $3.4m in rates and interest, remain as secured creditors.

Also, the state government has lodged notices against “various titles” to secure payment of about $682,000 for land tax, while Mr Brennan says there is little likelihood of funds being generated to pay unsecured creditors, said to be owed a total of $1.48m.

Mr Brennan’s report says no books and records for Passage Holdings have been provided and he has had to piece together the company’s financial position.

Records show six people held directorships in the company and Mr Brennan is now looking to question some of them in court.

The corporate regulator, the Australian Securities & Investments Commission, is funding the further investigations under its Assetless Administration Funding scheme.

In his report, Mr Brennan says Gore has steadfastly maintained his role as only being that of a consultant.

But Mr Brennan believes Gore might have been a shadow or de facto director.

He says Gore was the public face and promoter of Port Hinchinbrook during The Passage Holdings’ involvement.

Mr Brennan says Gore’s intention was to acquire, or to assist in acquiring, the resort and extract the stranded value in its assets but that the “fatal flaw” in the plan was that Gore did not have the funds to see it through.

In a separate matter, Gore was found guilty of six counts of fraud last month relating to obtaining $345,000 from self-managed superannuation fund investors through his role at Arion Financial.

Gore has been remanded in custody and is due to be sentenced on

November 26. In 2015, Federal Court judge Richard White ordered Gore be permanently banned from providing financial services for his involvement in the misuse of more than $4m raised from self-managed superannuation fund investors.

Mr Brennan says Daniel Clarke was the former legal adviser to Passage Holdings and was an instrumental party throughout the life of the company.

Evidence to the Sino-oakland Queensland Supreme Court case was that legal documents relating to The Passage Holdings, including the Oakland loan agreement, were prepared and arranged for execution by Mr Clarke.

“Like Gore, we submit that his role was more than a professional adviser and was more akin to a director,” Mr Brennan says.

Mr Brennan says he has commenced the process of seeking orders for a public examination of some of the officers of The Passage Holdings. The examinations are expected to be conducted early next year.

A spokesman for Gore could not be contacted for comment.

Mr Clarke, believed to now be living in Prague in the Czech Republic, also could not be contacted.