The liquidator appointed to collapsed Gold Coast company Condev Construction believes it could take years before creditors linked to the company’s 13 building projects are paid.
Key points:
- Forensic accountant Jason Bettles has been appointed to liquidate Condev Constructions
- Condev directors failed to secure a $25 million bailout package earlier this week
- Company owners Steve and Tracy Marais say they are heartbroken
Liquidator Jason Bettles, from Worrells Solvency and Forensic Accountants, said he could not put a timeline on the liquidation process.
“Generally the liquidation of a local coffee shop is going to take six months, but then you look at something like Ansett Airlines, that was still going after 10 years.
“The length of time to go through the liquidation really depends upon the affairs of the company.”
Rumours began late last week that Condev Construction was in financial trouble and a meeting was held between company directors and developers on Monday seeking a $25 million bail out package.
It failed and the company, which employs more than 100 staff, was placed into liquidation on Wednesday.
Condev owners Steve and Tracy Marais said they were heartbroken.
“We are absolutely devastated for the Condev family of employees, our tradespeople and our affiliates,” Mr Marais said.
Mr Bettles said he has only been appointed to liquidate Condev Constructions and the assets of the company, not the assets of company owners, Steve and Tracy Marais.
“In respect of claims against the directors, if they’ve signed personal guarantees for the supply of goods or services, then those individual creditors would look to the directors for payment,” he said.
“We’d only be looking to make claims if they’ve breached some duties, say under the Corporations Act, and I’m certainly not saying that has happened here.”
The collapse of Condev is being attributed to numerous events including increased costs of supply and trades, a culmination of the Omicron COVID-19 virus and up to 60 weather events that have delayed work on multiple sites over the past 12 months.
When it comes to the distribution of Condev assets, Mr Bettles said subcontractors, trade suppliers, the Australian Tax Office rank at the same level as creditors.
Condev employees and the banks rank higher when it comes to accessing money they are owed.
“The liquidator’s role is to realise the assets of the company, conduct an investigation of the company’s affairs to find out why it got into this position and to check that nobody has done anything incorrectly.
“Ultimately we report to creditors and pay the money that we recover to the creditors.”
