Mansion of Debt-Ridden Australian Mogul for Sale

A “For Sale” sign went up today outside Alan Bond’s Sydney waterfront mansion as receivers took over at his Australian breweries.

The latest evidence of acute financial strain for the embattled entrepreneur came as he continued a court battle to dislodge the receivers, fearing they could precipitate the collapse of his debt-laden business empire.

Real estate agents estimate that the 40-room Gladswood House, once described by Bond’s wife, Eileen, as her dream home, will fetch $8 million ($6 million U.S.) when it is auctioned next month.

Bond’s flagship Bond Corp. Holdings, which bought the house for $4 million ($3 million U.S.) four years ago as a base for Bond employees visiting Sydney, said the auction is part of continuing asset sales aimed at reducing debt it puts at more than $6 billion ($4.5 billion U.S.)

The court action to battle the appointment of receivers to the breweries was adjourned until Thursday after two days without resolution.

U.S. investors were the latest group to lay a claim to the breweries today. Lawyers acting for U.S. noteholders told the Victorian Supreme Court hearing the dispute between Bond and the banks that they may wish to join the case.

Lawyer Peter Hayes said he represented 21 investors, accounting for more than half of a $510-million U.S. note issue, who were interested in the legal action. He said he had been asked to tell the court of their interest and was awaiting further instructions from them. Hayes said the noteholders were unsecured lenders.

Bond’s Australian breweries had about $800 million of U.S. notes on issue as of June 30, 1989.

The appointment of receiver-managers to the breweries was made at the instigation of a syndicate of banks, which is owed more than $700 million ($525 million U.S.)