This article is from the Australian Property Journal archive
CREDITORS of failed construction giant Probuild with debts of less than $25,000 will be paid in full following a deal struck by administrators Deloitte.
Probuild was collapsed in February after its South African parent company Wilson Bayly Holmes-Ovcon (WHBO) withdrew financial backing, leaving $5 billion worth of major projects in jeopardy.
Deloitte’s new deal, according to The Australian, will see $1.8 million worth of payments made to creditors and contractors. It follows employees receiving $16 million in outstanding entitlements in September.
Soon after being appointed, Deloitte has supported WBHO’s proposal that smaller creditors receive between 50c and 71c in the dollar, and others between 3.9c and 24.6c, with nearly $250 million in liabilities outstanding. The appointment of Roberts Co to take over several Victorian projects saved potentially over $100 million in creditor claims.
Those projects included SP Setia’s 65-level Uno residential tower, CSL’s new headquarters and research lab in North Melbourne, ISPT’s 500 Bourke Street office building, Woodlink’s 15-storey hotel at 502 Albert Street, and Golden Age Group’s 130 Little Collins Street.
Meanwhile, WBHO Infrastructure‘s Western Australian operations were picked up by ASX-listed SRG Global for $15.2 million.
Australia’s construction industry has been smashed by surging costs, rising interest rates, inflationary pressures, supply constraints and labour shortages.
Multibillion-dollar developer Caydon Property Group collapsed in July, following Queensland building Condev.
Snowdon Developments was ordered into liquidation by the Victorian Supreme Court impacting 52 employees, 550 homes and over 250 creditors who are owed nearly $18 million, and Langford Jones Homes went into liquidation owing 250 creditors more than $10 million.
Queensland building firm Solido Builders appointed liquidators just days after the collapse of Pivotal Homes, while last week NSW building company Willoughby Homes went into administration last week.
