Pub With No Work

Newcastle Herald

Friday October 24, 2008

By IAN KIRKWOOD Industrial Reporter

WORK is yet to resume on the $7 million-plus Bellevue Hotel redevelopment, as the receivers and administrators of Momentum Mortgages work out what to do with the company.

The Port Macquarie-based financier went into receivership on October 13, just as work was resuming on the troubled Hunter Street project.

The Bellevue is being redeveloped by Newcastle's Task Group, which had funded the job through a loan from Momentum.

Bellevue project manager Gerard Connaughton said workers were still owed about $540,000 for about six weeks' work, and there was no word as to when the project would be refinanced.

Momentum's problems have also caught about 30 Hunter investors, who are among about 500 people to have sunk funds into the company.

Momentum managing director Brett Gilbert appointed PPB Port Macquarie as the company's administrator, but a secured lender, Perpetual Nominees, appointed Sydney firm McGrathNicol as receiver/manager.

PPB Port Macquarie partner David Leigh held a first creditors' meeting at his offices yesterday, but said the fate of the Bellevue remained with McGrathNicol.

Mr Connaughton said McGrathNicol was hopeful of refinancing the job but nothing had happened in the meantime.

When The Herald visited the site yesterday it remained closed with a security guard on duty. McGrathNicol froze Momentum's funds earlier this month.

© 2008 Newcastle Herald

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