Australia, June 2 -- New South Wales Land and Environment Court issued text of the following judgement on May 2:

1. By Originating Process filed on 21 June 2024, the Plaintiffs, Spring Street Property Group Pty Ltd ("Spring Street") and Ms Markovsky, originally sought relief against Messrs Sallway and Clubb in their capacity as receivers and managers ("Receivers") of Spring Street. The issues raised in the Originating Process have been resolved and it has now been dismissed by consent.

2. By Amended Interlocutory Process filed on 12 August 2024, the Receivers in turn sought declaratory relief and directions to address a dispute as to the entitlement to surplus funds in the receivership. That dispute remains in issue and the alternatives there identified are in contest between the other remaining parties to the proceedings.

3. The Receivers first seek declarations that, pursuant to a document titled "Harbourland Group - Portfolio Refinance NSW - Commercial Cash Advance - Indicative Term Sheet - Version 1.16" dated 31 October 2022 between, among others, WholeCap Investment Management Pty Limited ("WIM") and Spring Street as a borrower ("First Term Sheet") and a document titled "26-30 Spring Street, Bondi Junction NSW - Commercial Cash Advance - Indicative Term Sheet - Version 1.0" also dated 31 October 2022 between WIM and Spring Street as a borrower ("Second Term Sheet"), WIM has a valid and enforceable security interest against Spring Street for any debt owed by Spring Street under the First and Second Term Sheets ("Term Sheets"), or alternatively a declaration to the contrary. If the first declaration is made, the Receivers seek a declaration as to the quantum of the debt owed by Spring Street to WIM. The Receivers also seek consequential declarations as to whether they would be justified in paying amounts to both WIM and Spring Street from the funds they hold or alternatively to Spring Street from the funds they hold. The Receivers rightly took no active role in the determination of that question, which was contested as between Spring Street on the one hand and WIM and an associated company, WholeCap Securities Pty Ltd ("WSPL"), on the other.

4. The Plaintiffs in turn set out their position in Points of Claim ("PPC") filed on 23 August 2024. They there sought a declaration that the Term Sheets did not grant WIM a valid and enforceable security interest against Spring Street, as security for any debt owed by Spring Street under the Term Sheets and a consequential order for the payment of funds to Spring Street. WIM and WSPL responded to that claim by a Points of Response ("WPR") dated 9 September 2024.

*Rest of the document can be viewed at: (https://www.caselaw.nsw.gov.au/decision/1968e0c5f7fad2be73bee063)

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