Businesses run by Salim Mehajer have just $32,000 left in the bank and owe creditors at least $97 million, a court has heard.
The 31-year-old former deputy mayor held a 5.30am meeting with himself to remove the director of two of his businesses hours before the appointment of administrators, Justice Paul Brereton was told on Tuesday.
Mr Mehajer, who was deputy mayor for Auburn City Council in Sydney’s west, is the sole shareholder of the companies.
Lawyers for Mr Mehajer’s companies Sydney Project Group and S.E.T. Services appeared in the Supreme Court in Sydney on Tuesday to discuss matters surrounding the administrators.
They were attempting to prevent the newly appointed administrators from taking any action involving the companies assets.
There is a dispute over whether the appointment of administrators Michael Andrew Hogan and Christian Sprowles on June 16 was valid.
The court heard Mr Mehajer removed the director Kenneth Lee and replaced him with his sister Khadijeh ‘Kat’ Mehajer before Mr Lee went through with the administration change.
Mr Mehajer’s lawyer Marcus Young said the meeting happened at 5.30am because ‘it was Ramadan and people have to get up early to eat breakfast,’ The Sydney Morning Herald reported.
But the administrator’s lawyer Andre Zahra alleges there was no notice that Kat Mehajer was to become the director and they were entitled to rely on the Australian Securities and Investments Commission register.
Receivers have been appointed to both companies, the court heard.
The NSW Supreme Court judge granted an injunction, which means Wednesday’s meeting of creditors will be cancelled pending a hearing on Thursday about whether the administrators were validly appointed.
Salim Mehajer married wife Aysha in an elaborate display of wealth, even going so far as to close Frances Street, Lidcombe, during the 2016 extravaganza.
Mr Mehajer hired out four helicopters, while Aysha travelled with an enormous procession of Ferraris, Lamborghinis and Harley Davidsons worth $50 million for the ‘wedding of the year.’
There was also a battalion of drummers, a red carpet and a cake nearly taller than the bride.