Solar Farm Dream Ends in Multi-Million Dollar Legal Battle
A mining executive has been ordered to pay substantial outstanding debts after a failed solar farm project in the Upper Hunter region culminated in a $3 million Supreme Court fight. The case pitted advertising mogul Rohan Delany against mining and engineering executive Gary Alexander Williams over a defaulted loan intended for renewable energy development.
The Deal That Went Wrong
The legal dispute centred around a $3 million loan provided by Delany Advertising and Media to Upper Hunter Solar Pty Limited in November 2018. Gary Williams served as director of the solar company and provided a personal guarantee for the financing.
The loan agreement featured an interest rate of 20% per annum, reducible to 12.5% if payments were made on time. Additional security included corporate guarantees from Munich Partners Pte Ltd and personal guarantees from Mr Williams, Frederick Suhren of Munich Partners, and another associate.
According to court documents, initial repayments were sporadic before ceasing entirely, prompting Delany Advertising to issue a formal demand in September 2019 seeking $3,879,295.48 plus interest and recovery costs.
Gold Coast Meeting Becomes Central to Dispute
Mr Williams claimed during proceedings that he only agreed to provide the personal guarantee based on understandings reached during a meeting at the Sheraton Mirage on the Gold Coast in November 2018. He argued that Delany had committed to pursuing other guarantors before making claims against him.
However, Supreme Court Justice James Hmelnitsky found this version of events unconvincing, stating he did not believe the alleged agreement was reached during the Gold Coast meeting. The court heard that the Delany brothers were holidaying on the Gold Coast when the meeting occurred less than a week after initial discussions about the personal guarantee.
Justice Hmelnitsky also dismissed Mr Williams' additional arguments that he had no liability because he was never properly served with a default notice and that the four-year delay between loan default and court action constituted a postponement of proceedings.
Background of the Key Players
Rohan Delany operates as sole director and majority shareholder of Delany Advertising and Media, which plans and purchases media for television networks, radio stations, outdoor advertising companies and digital platforms. He comes from a prominent family of four brothers including Patrick Delany, CEO of Foxtel, and Julian Delany, managing director of News Digital Networks at News Corp.
The court heard that lending opportunities sometimes came to Rohan Delany through his brother Michael, who operates a mortgage brokering business and was previously a 50% shareholder in finance brokering company Forte Lending.
Gary Williams brings extensive experience in mining and agriculture businesses throughout the Hunter Valley region. He became involved in the solar project after being approached by Frederick Suhren of Munich Partners in September 2017 about developing a potential solar farm site.
Outcome and Financial Fallout
The property securing the loan eventually sold for $2,024,500 to partially settle the debt. Delany Advertising discontinued its claim against Munich Partners, while the other individual guarantors subsequently declared bankruptcy, leaving Mr Williams as the remaining viable target for recovery of the outstanding balance.
Justice Hmelnitsky ruled in favour of Delany Advertising and ordered Mr Williams to pay the remaining debt plus interest and legal costs. The court has requested Delany provide a complete calculation of the total amount owed following the November 10 judgement.
The case highlights the financial risks associated with renewable energy development in regional Australia and serves as a cautionary tale for investors and guarantors involved in complex financing arrangements for major projects.
