QLD – Worst Case Scenario – deficit fund due to non-paying developer

Just want to get a second opinion on the following issue..

Resort type Apartment – QLD – 80 lots. Owner occupied – 40 units and Hotel Operated Lot – 40 units

Issue: Currently our body corp had been ordered by the court to pay the defendant $70k in legal cost due to legal battle between the developer/body corp joined parties (accuse) and the builders (defend). Previously developer is suppose to pay 50% of the legal cost and body corp the remaining 50%. However, the result got changed to body corp will now have to pay 100% of the legal cost.

Motion to raise 70k via special levy had been purposed and will be decided in the coming month. At the same time 6 months had past and we are still in legal proceeding with debt collections on 40 units that are operated by the hotel – which had a signed agreement with the developer because those 40 units belongs to the developer (which obtain funds from “Bank of XXX”)

In simple term…the levy is collected from 45% of the owner to cover 100% body corp funds  – which is not sustainable.

Our body corp manager told all the owners that ” if the accuse do not paid the defendent..the defendant can move to execute on the judgement…for example..defendant can caveat common property, redirect to itself payments due, sell body corporate assets, ask for financial records and require the committee to answer, on oath, questions about financial position or wind up the body corp”…

Question: Hypothetically, if the special levy didn’t past the vote, what is the possible worst case scenarios for the individual apartment owner? What is the level of severity when it comes to sell of body corp asset/wind up body corp? Do debt collector have the legal power to force sale owner occupied units to recover any body corp debt (my assumption is no one can force sell any owner occupied unit).