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John McGrath has revealed Sydney lawyer Andrew Robinson wil be one of the two two new directors who will join the board of his struggling listed real estate business McGrath (ASX: MEA) tasked with the job of turning the company around.
The other appointee is Peter Lewis, Kerry Stokes's former chief financial officer, who will be the new chairman. Lewis is also a former CFO of Seven Group and Seven West Media.
Andrew Robinson who founded the commercial law firm Robinson in 1982 and he specialises in tax disputes, corporate reconstructions and commercial negotiation. Robinson has extensive experience in the property industry as a manager and investor and his most high-profile client has been actor Paul Hogan.
"I look forward to working closely with them to restore shareholder wealth and the McGrath business to strong growth," McGrath said in an ASX statement.
John McGrath says the listed company will announce a new corporate plan and senior management structure "in due course".
The two appointments follow a tumultuous two years for McGrath as a listed company which in recent months has been rocked by profit warnings, boardroom and staff exits and media reports that John McGrath has more than $16 million in gambling debts.
Shortly after posting the half-year results on Thursday, McGrath went into a trading halt because of "recent media comment in relation to Mr McGrath".
The controversy surrounding John McGrath stems from media speculation that McGrath is in debt to gambling company William Hill Australia to the tune of $16.2 million.
Shares in the real estate company dived to a record low of $0.42 on Tuesday after three board members resigned from the embattled company. It listed in 2015 at $2.10.
The departures of CEO Cameron Judson, chairman Cass O'Connor and non-executive directors Elizabeth Crouch and Cath Rogers left founder and 26 per cent shareholder John McGrath as the company's only remaining board member until the replacements were officially announced.
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Business News Australia
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