NSW man bankrupted over claimed $10m debt

Albury businessman Allan Endresz has been declared bankrupt following a long-running court battle.
Albury businessman Allan Endresz has been declared bankrupt following a long-running court battle.

An Albury businessman has been declared bankrupt in a win for the Commonwealth which says he owes it more than $10 million following a long-running court battle.

The Commonwealth had applied to the Federal Court for a sequestration order against Allan Paul Endresz .

He opposed it on a number of grounds, including a submission that the judge could not be satisfied that the debt was still owing.

But Justice Jacqueline Gleeson on Thursday made the order and ruled that the Commonwealth's legal costs of $19,739 be paid from the estate of Mr Endresz.

In its March application, the Commonwealth said Mr Endresz owed it $11,588,824.

This was said to be the balance of a debt order of $18,633,178 made in the ACT Supreme Court in 2014 less $7,044,354 received in part satisfaction of the debt.

"The creditor's petition notes that the Commonwealth holds security over property of Mr Endresz consisting of an equitable charge over real property, leaving an unsecured debt of $10,308,824.42," the judge said.

The Commonwealth in 1999 commenced the ACT proceedings which concerned payments of federal funds to Albury-based company CTC Resources.

The payments were made by David Muir, an employee of a contractor of the Commonwealth, who was subsequently convicted of fraud.

Justice Gleeson said the summary provided by Mr Endresz stated that the judge found the payments were made without parliamentary authority and were therefore illegal and void.

The ACT judge concluded that Mr Endresz, among others, was liable for knowingly assisting in the breaches of fiduciary duty.

Over the years, a number of appeals and other proceedings took place culminating in the bankruptcy application.

Australian Associated Press