Creditors eye cricketers' $2m

SYDNEY - Three Australian cricket stars could lose the more than A$2 million ($2.24 million) they were repaid over failed property deals with flamboyant developer Kovelan Bangaru, as other creditors seek the A$50 million they are owed.

Hundreds of unsecured creditors, some of whom could lose their homes, heard they probably helped fund Bangaru's luxury lifestyle and they were unlikely to recover anything they invested in seven of his companies that went into administration last week.

Fast bowler Brett Lee, his brother Shane Lee and former test player Michael Slater stand to lose a combined A$2.3 million they recovered last month from one of the companies that went into administration, Hall Chadwick administrator Geoff McDonald said.

"They got A$2.3 million between them and all these good people here got nothing," McDonald said.

"I don't know about being sued, that sounds so tough and mean, but there's a technicality under the law that says they could be pursued to repay that money.

"It's way to early to see whether that will happen, but it certainly will be investigated and on the face of it it does look like they have something to be concerned about."

McDonald's comments came after a first meeting of about 320 creditors and about 30 investors, who are owed about A$50 million, after investing in seven companies that now own properties worth about A$30 million.

Unsecured creditors were unlikely to recover anything, McDonald said.

"The money appears to have gone on lifestyle - it was reported to be a very good lifestyle - but also financing the highly geared properties or fundamentally paying the interest on the loans."

The process of tracking down the money would take months, he said.

"There is already information from creditors about business dealings in America, transactions in the Cayman Islands, dealings with Donald Trump, things like that. If there is any truth to it, we will find it."

Death threats allegedly kept Bangaru from the meeting, but he apologised via telephone and denied allegations of stashing the money away or funding a lavish lifestyle.

"We didn't embezzle that money," Mr Bangaru said, adding it all went on properties and paying off loans.

ASIC has twice investigated complaints against Bangaru without taking action against him, the meeting heard.

McDonald said it was too soon to tell if it would be worthwhile suing Bangaru.

- AAP