Malaysian-born businessman Kenneth W.H. Lee was installed as a director of two of the most troubled Mehajer companies last week, in what could be interpreted as a sign the controversial developer-politician is being forced to take a back seat from its financial affairs.

The move comes as the suspended deputy mayor of Auburn council is searching for a major source of cash to settle disputed loans amid mounting claims of missed payments.

Mehajer companies have been negotiating for weeks to secure new loans believed to be over $50 million for its signature project, a 14-storey block in Lidcombe known as Sky Point towers.

That comes just a fortnight after Queensland financier Reynolds Private Wealth made moves toward winding up a third company over what it said was non-payment of debt.

A source said negotiations were being further impeded because Cr Mehajer's wife, Aysha, who has co-signed several loan agreements, had been difficult to contact. The couple's lavish wedding last August brought them into the public spotlight.

Cr Mehajer's sister, Khadijeh, and another close family associate resigned their company roles last week.

Mr Lee recently took up a job at Madison Marcus - a law firm and financial advisor that counts Cr Mehajer as one of its clients - after a company he founded ceased trading in Singapore this year. He has a long history of working on construction financing in Sydney.

His appointment is seen by some in the industry as evidence that lenders are demanding - possibly with the threat of foreclosure - that Cr Mehajer step back from the company before striking any future deals.

The company is believed to have been in dispute with GM Securities over one of the loans for the development project. Another lender on the project, Acuity funding, is suing the company for $2 million in debts and for contract breaches.

"We have never fallen behind in payments," Cr Mehajer said, denying the construction work was faltering. "We anticipate to take Lidcombe to new heights in delivering a masterpiece by offering seven star workmanship and quality."

Cr Mehajer said he was appointing more experienced staff as his business was growing. He would not say if Mr Lee's appointment was requested by lenders.

The appointment of someone outside his inner circle is unusual because a coterie of relatives and close friends have cycled through leadership jobs in the companies. Changes in company leadership have become increasingly frequent.

On one particularly hectic day last month, family members were removed and appointed from the same companies on the same day.

Cr Mehajer made a show of officially stepping down from directors' positions of the companies last year, saying he would pursue a career in medicine.

But he remains a shareholder and the companies' general manager.

A growing list of lenders have now secured debts against the Mehajer property portfolio, including high-interest lenders in Australia and overseas and various contractors.

Controversially, the company behind the Skypoint development was set to increase its profits by $45 million by changing the configuration of several apartments to maximise space. Some residents complained their apartments had been greatly reduced in size.