Buyers of apartments in The Orchid development in Sydney – now called Bloom – agreed to release $44 million in deposits to developer Ralan.
Receivers have begun selling apartments in failed developer Ralan's former Sydney project, as they look to repay debts owed to non-bank lender Wingate and global investment firm Fortress.
The $300 million project known as The Orchid at 213 Princes Highway in Arncliffe near Sydney Airport features 318 apartments and 36 commercial units and is nearing completion.
Of this amount, about $44 million is owed to mainly Sydney-based Chinese investors, who agreed to release their deposits for The Orchid apartments to Ralan as unsecured loans earning interest of 15 per cent per annum or more.
The spokesman said Deloitte was open to "constructive engagement and working toward market-based agreements" but that options proposed by some pre-sale purchasers to date have been "insufficient in detail to take forward".
So a second wave of government supports must extend the emergency lifeline for the economy beyond September.
The list is long: JobKeeper ends, the doubling of unemployment benefits through JobSeeker stops, the pause in payments on half a million mortgages runs out, the rental eviction ban is lifted, government loan guarantees for small businesses pull back, and the clock runs out on extra wage subsidies for apprentices.
Or, to put that another way, if you want to know what will happen with JobKeeper, keep watching the virus numbers in Melbourne.
But the recession is changing shape fast, so the nature, timing and dollars of government support needs to change fast too.
So whatever happens, we shouldn’t be scared of spending more money if that’s needed to get unemployment back down.
The mistake the world made after the GFC was pulling back government support too soon.