‘Invest like a billionaire’: Sunito’s cash dash to save Crown fortune

He has been seeking equity partners in Jakarta and Medan amid deteriorating debt positions in the Crown collapse and increasing pressure from non-bank lenders such as Hong Kong investment giant PAG and even a residential college.

The Crown co-founder’s cash flow pressures reflect broader challenges in property development, where developers are grappling with higher interest rates and tighter lending conditions, making repayments increasingly difficult.

At the centre of Sunito’s financial woes is his private investment vehicle, CII Group, which quietly slipped into liquidation in late March. CII Group holds Sunito’s stake in Crown Group – where he accrued most of his assets – and thereby a significant chunk of his personal wealth.

One ramification of CII’s liquidation is that any proceeds from Crown Group’s ongoing asset sales as part of the corporate divorce between Sunito and Sathio would be directed to Sunito’s creditors before reaching his personal coffers.

The liquidation arose after court action brought by Dunmore Lang College, a residential college affiliated with Macquarie University, which alleged it was owed $1.1 million.

Sunito had challenged the debt by appointing two administrators from Greengate Advisory to postpone the liquidation so that he could submit a rescue scheme, but the court dismissed the effort due to its lack of factual basis.

“[Greengate Advisory administrator Patrick] Loi refers to a Microsoft Excel spreadsheet provided by Mr Sunito, which represented the assets which Mr Sunito ‘believed’ could be used as security for payment of the contributions, but Mr Loi has also had no opportunity to verify that representation,” Judge Ashley Black wrote in his judgment in late March.

In its decision, the NSW Supreme Court noted that the funds placed into the company’s trust account during the administration process were only sufficient to pay the administrator’s $100,000 fee, with not enough to repay creditors.

Sunito has been dragging his feet on resolving the liquidation, delaying providing a report on company activities and property (ROCAP) to the vehicle’s liquidators twice. Providing that information is required for liquidators to investigate the company and determine a way forward.

“Our team is finalising the ROCAP,” Sunito told the Australian Financial Review.

‘Invest like a billionaire’

Amid the cash flow issues, Sunito has been travelling to Indonesia to raise capital. In a flyer seen by The Australian Financial Review, Sunito has invited potential Indonesian investors to invest in One Global Capital – his offshoot company following Crown Group’s collapse.

“Invest like a billionaire,” the flyer reads. “Investing like a billionaire isn’t just about having a lot of money – it’s about thinking strategically, managing risk, and taking advantage of opportunities that others overlook.”

The personal financial troubles coincide with the continued fallout from the collapse of Crown Group, which is now being forced to divest its remaining hotel assets under pressure from Hong Kong-based investment group PAG, a key creditor.

Receivers have commenced a sale process for the group’s Skye Suites Sydney CBD hotel and the neighbouring Our Skittle Place retail strip, while a Parramatta hotel is expected to be brought to market later this year.

Before its collapse, Crown had developed three hotels in the Sydney CBD, Parramatta and Green Square, which were originally financed with a single loan facility by ANZ. PAG acquired that ANZ debt in late 2013, when the public feud was still ongoing, as it saw an opportunity to get high-interest rate returns from the distressed debt.

The PAG debt, exceeding $80 million, charges as high as 13 per cent in interest and covers the CBD and Parramatta hotel assets, according to sources familiar with the arrangement but not permitted to speak publicly. It also covers the retail portion of the Green Square asset.

The Green Square hotel suites, meanwhile, are no longer tied to the PAG debt after Sunito acquired them from Crown Group last year, Sunito said. The debt tied to the Green Square hotel suites have been refinanced with a separate non-bank lender, he said.