This article is from the Australian Property Journal archive
ONE week after Grocon was revealed to be owing creditors $60 million, the construction giant has been thrown off a $111 million office project in Melbourne.
Work had already been halted at the 12-level Northumberland development in Collingwood, which was bought by the Danny Almagor and Berry Liberman-backed ethical fund Impact Investment Group (IIG) in a fund through deal.
It is understood outstanding invoices date back to March, and speculation has been swirling that Impact had run out of patience with Grocon.
IIG is now facing losses of $20 million on the project, and subcontractors are owed $8 million, meaning nearly $90 million has now been run up against Grocon’s name.
KordaMentha was appointed to 39 companies last week. Grocon boss, Daniel Grollo last week blamed the NSW government’s handling of the Central Barangaroo project for its collapse. Northumberland and the Ribbon project looking out to Darling Harbour were not part of those administration entities.
Grocon is suing the state government in the NSW Supreme Court, seeking compensation of $270 million and attempting to have the details of the out-of-court settlement between the government and Crown and Lendlease to protect sight lines from the neighbouring new casino to be made public.
Grollo said creditors would be paid in full if the company is successful in its litigation.
Last year, Grocon struck a deal with creditors over two dormant subsidies and avoided liquidation. The company had called in administrators for two subsidiaries over a dispute with Dexus relating to lease payments at the 480 Queen St office tower in Brisbane.
