Facts about the "Sando"
27 August 2012
You may have seen a recent campaign against the Bankwest and Commonwealth Bank regarding the Sandringham Hotel in Newtown NSW, we would like to put our side forward.
It is Bankwest's overriding priority to work closely with customers who face financial difficulties on a case-by-case basis. It is not in the Bank's interest for customers to enter into receivership.
The matter of the Sandringham Hotel has been ongoing for some time with defaults on the facilities occurring since mid-2009.
This customer continued to be in default throughout 2009 and 2010, including non-payment of interest on the debt, and also non-payment of Land Tax to the NSW Office of State Revenue. During this time, the Bank granted extensions over a significant period to give them the opportunity to refinance. Despite the numerous assurances made by the customer to clear the position, none were met. Bankwest also paid the outstanding Office of State Revenue debt to allow the hotel to continue to trade.
As the customer did not take the necessary steps to resolve their financial issues and following an extensive period of time working with the customer, the Bank appointed receivers in July, 2012.
The receivers have commenced marketing the property for sale and will take all the possible steps to ensure the business continues to operate as usual during this time.