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The liquidators to Condev Construction have revealed the extent of the financial black hole facing the Gold Coast-based construction company with a $12 million shortfall in assets.
Preliminary investigations by liquidators Jason Bettles and James Robba of Worrells have found Condev has debts of $45 million but assets of only $33 million.
Most of the assets are listed as debtors and retentions which are due to the company, as well as cash and real property.
The company’s debts are largely to unsecured creditors such as sub-contractors, lenders and employees. However, the liquidators note that the level of unsecured debt may change as more developers take on Condev sub-contractors to finish their projects amid peak market demand for apartments on the Gold Coast.
“We understand developers have engaged a number of sub-contractors and employees who were formerly working for the company to assist in completing projects,” says Robba.
“It’s important to note that these decisions and engagements are all being made completely independent of our role as liquidators of Condev Construction.”
Condev, which was founded and led by Steve and Tracy Marais, was placed into voluntary liquidation on March 16 with the company citing rising construction costs, supply chain issues and the recent floods for adding pressure to already slim margins.
Condev had about 18 active projects under way in Queensland worth about $1 billion prior to its collapse, with most of them located on the Gold Coast.
Despite the $12 million shortfall in assets, Robba says he expects Condev’s staff of more than 100 will receive their entitlements in full. He says the funds will come from either company assets or via the government’s Fair Entitlement Guarantee Scheme.
“Our teams are continuing to liaise with all affected parties, completing our own investigations into the company records, and have engaged agents to assist in collecting the company assets for sale,” says Robba.
“It’s still very early days in this appointment, and we’re very aware and empathic to the impact it’s having on everyone. We’re doing our best to find a way to make a bad situation a little better for everyone.”
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