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Probuild owes over $14m to workers, more creditors to come forward

2 Mar 2022 | 19:24 | Melbourne | by Nelson Yap

This article is from the Australian Property Journal archive

COLLAPSED construction giant Probuild’s administrator, Deloitte, has revealed the company owes 800 workers at least $14 million and over 2,300 creditors have so far come forward, with more expected.

Deloitte’s lawyers are asking the Federal Court for an additional 21 days to compile their preliminary deport, describing the task as “nightmarish”.

“The mind boggles at the amount of work the administrators have been undertaking and are required undertake to try and get across this type of administration,” lawyer Hamish Austin said.

“Where you’ve got the nightmarish prospect of construction projects ongoing in real time, and any disruption is likely to be extremely costly and add complexity to the exercise.”

Probuild was appointed as administrators last week after its South African parent company Wilson Bayly Holmes-Ovcon (WHBO) withdrew financial backing.

WBHO blamed the Australian government’s handling of the pandemic and restrictions.

“The Australian government’s hard-line approach of managing COVID-19 through a combination of border restrictions, snap lockdowns and mandatory work-from-home regulations for many sectors, has had a considerable impact on property markets as well as other industries such as the leisure industry,” it said in a statement.

“Of particular concern is the project delivery capability of the business which has been negatively affected by unplanned COVID-19 restrictions, the contractual environment and the increased difficulty in raising guarantee facilities necessary to secure new work.

“The protracted effect of COVID-19 has delayed any meaningful economic recovery and procurement activity in Australia.” WBHO said.

The collapse comes a year after Treasurer Josh Frydenberg used national security grounds to scupper a $300 million sale of the company to China State Construction Engineering Corporation.

Probuild had 18 projects active, with most in Victoria and others in New South Wales, Queensland and Western Australia.

Probuild owes over $14m to workers, more creditors to come forward

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