SCOTT SAWYER19th May 2020 4:22 PM | Updated: 6:09 PM
ALMOST $30 million was tipped into a Coast building company in the months leading up to its collapse.
A letter written on behalf of RGD Group Pty Ltd shareholder Greg Clark, understood to be the former head of global cyber security company Symantec, to creditors of RGD Group and RGD Constructions Pty Ltd outlined the efforts.
The letter said Mr Clark was the largest creditor of the companies, and was sent ahead of Wednesday's first meeting of creditors since the firm directed by Ron Grabbe was placed into voluntary administration last fortnight.
"His family has a long-term personal relationship with the Grabbe family and it was in the context of this long term personal relationship that Mr Clark became involved with the companies," the letter read.
The letter said based on the long-term relationship, Mr Clark agreed to lend $8.15 million, with an initial amount of $3 million transferred within days.
In a statement confirming the appointment of administrators earlier this month, Mr Grabbe said he was "very appreciative of the personal and financial support received from the Clark family".
Mr Grabbe declined to comment on the matters when contacted on Tuesday.
The letter claimed Mr Clark paid a further $5.202 million in mid-September.
The letter said the loan was, for all practical purposes, unsecured, and the initial $8.15 million had been lent for the "sole purpose of enabling the companies to meet outstanding liabilities to unsecured trade suppliers and subcontractors of the companies".
The letter said without the payment, liabilities to creditors may not have been made on The Rhythm on Beach project at Maroochydore, and the bank, or mezzanine lenders might have been left to finish the project and make the sales.
Mr Clark began to have "serious doubts" about the companies' ability to manage their finances, and he insisted on the appointment of a forensic accountant.
An investigating accountant told Mr Clark there were liabilities to unsecured trade suppliers and subbies of about $10.5 million and the companies had debts of $41.5 million to mezzanine lenders.
Those debts to lenders were incurring interest of 20 per cent, capitalising monthly, and there was also an amount of $20 million owed to a bank lender.