On 12 October 2012, the Supreme Court handed down judgment granting the government’s petition to wind up TCI Hydra Developments Ltd. TCI Hydra had agreed a lease with the government that had expired in 2009, following non-payment of rent totalling $83,500, which it was unable to pay.
The government commenced proceedings to wind up the company after the parties were unable to agree settlement terms. The company opposed the liquidation but the court determined that the company was clearly unable to meet its debts and should be placed into liquidation.
The liquidator will now take steps to liquidate the company's assets in order to pay the government and any other creditors.
The action is part of the government’s investigations into commercial conditional purchase leases, which commenced in 2010. The investigation has focussed on approximately 100 parcels of land where commercial leaseholders have failed to pay rent.
Over 70 acres of land have been recovered or are due to be recovered and 19 sets of proceedings have been issued, with $175,000 in arrears and damages being recovered or ordered to be paid.
The investigation has been conducted by the Attorney General's Chambers with assistance from the Civil Recovery Unit.