Shadow Minister for Fair Trading Catherine Cusack has released details of the complex ‘web of debt’ in a bid to end speculation that Mr Larry King’s associated companies were overall creditors to Beechwood Homes.

“Mr King’s related companies are on the whole very big debtors to Beechwood,” Ms Cusack said.

“The analysis shows how companies associated with Mr King received loans of $42.35 million from Beechwood. A total of $33.9 million was loaned back, so the bottom line leaves Beechwood $8.393 million in the red.

“The issue is vitally important because Mr King and associated parties have taken action to recover more than $22 million they say are owed to them by Beechwood Homes. If he succeeds in portraying himself as a ‘victim’ it will be at the expense of other creditors.”

Ms Cusack today raised concerns about evidence $1,557,000 was paid by Beechwood into Mr King’s Trust between 29 April and 13 May when it collapsed.[1]

“The ‘web of debt’ is a conservative estimate of money flowing out of Beechwood to Mr King’s related companies,” Ms Cusack said.

“It does not include $58 million losses inflicted on Beechwood in three costly transactions: the writing off of a $40.2 million Beechwood ‘investment’ in racehorses; a $13 million debt ‘forgiven’ for Mr King’s business partner; and $4.8 million paid by Beechwood Builders for an agreement it was not a party to.[2]

“It’s hard to fathom how Mr King is now formally positioned as a creditor-victim claiming more money than all the other creditors put together. At last Thursday’s Creditors meeting Mr King and his related companies were again present, represented by proxies.

“Sources close to Mr King say he is ‘sorry for other creditors’. If so, he could stop claiming to be one of them. Instead he should repay any money he ‘borrowed’ from Beechwood.

“There are 580 consumers who are forced to compete with Mr King as unsecured creditors. If Minister Burney steps in with legal advice she will be helping all creditors. 

“The NSW Liberal/Nationals are doing their very best to air the information. We know expensive legal advice isn’t an option for inexperienced creditors who’ve lost everything.

“Ms Burney has a Ministerial Office, Department and access to the Government Solicitor – I implore her put these to work, to help the Beechwood victims,” Ms Cusack said.

[2] Ibid

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