Muir surrenders passports prior to creditors meeting

By James Wells

MELBOURNE: Gavin Muir, the former director and half owner of TEAC Australia, has surrendered his passports ahead of an investigation by the Australian Securities and Investments Commission (ASIC) and a creditors’ meeting regarding a failed property development.

According to a statement issued by ASIC, Muir provided undertakings to the Federal Court of Australia last week not to leave Australia before 1 September, 2006.

During this time Muir’s passports will be held by the Court, while an investigation is undertaken regarding the collapse of Teac Australia last year.

“ASIC is conducting an investigation relating to Teac Australia,” the statement said.

“Mr Muir agreed to provide these undertakings during discussions that took place before ASIC’s proceeding was issued. ASIC does not otherwise intend to comment upon these undertakings or its investigation.”

Muir, who valued his half share of Teac Australia at $25 million in the middle of 2004, recently admitted to the Federal Court that after the company went into administration with debts of $105 million on 13 March, 2005, his share had been reduced to a debt of $1.

In addition to the ASIC investigation, Muir will face a creditors’ meeting next Monday regarding the failed Bay Street Corporation project.

Investors in the $120 million apartment complex, known as The Muir, will decide whether to agree to a deed of company arrangement or place the project’s development company into liquidation through the company’s administrators – PPB.

Muir’s Bay Street Corporation owes 24 investors, including a number of celebrities, millions of dollars after the company was placed in administration last November.

According to documents tabled in the Federal Court, Muir planned to develop about 200 luxury apartments at the site of the former Teac Australia headquarters at Bay Street in Port Melbourne.

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