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June 1, 2020 By subbiesu Leave a Comment

Angry subbies, creditors in uproar as collapsed builder’s debt doubles to $3.4m and meeting shutdown

Angry creditors are calling for an independent investigation into the collapse of a Brisbane-based builder and for its administrator to be ousted as the company’s debt soars.

Phil Bartsch, The Courier-Mail Subscriber only|June 1, 2020 10:30am

A FIERY creditors battle has erupted with calls for an independent review into the collapse of a Brisbane-based builder and a bid to oust its administrator as outstanding debts balloon.

Bulkbuild Pty Ltd, a company with a strong track record on major projects, went into voluntary administration almost two weeks ago owing creditors $1.6 million.

Since then, its estimated debts have skyrocketed — more than doubling to $3.4 million.

It also has been revealed the developer of a West End apartment project — where work was still underway when the company collapsed — is claiming it is owed more than $1 million.

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Tensions flared late last week at the first creditors meeting, which was adjourned for a week after a move to replace company-appointed administrator Leon Lee of Moreton + Lee Insolvency.

It is understood there are at least 70 creditors, many of them subcontractors.

Subbies United advocacy group spokesman John Goddard said the meeting had “degenerated into a fiasco … and uproar when the administrator abruptly postponed the meeting”.

He said an overwhelming majority of creditors indicated they wanted the administrator replaced — “almost 2 to 1 against him”.

But Mr Lee disputed the creditors’ vote count, which was based on both numbers and the value of debt owed.

Mr Goddard said the week-long postponement would “come at a cost to creditors and the money trail will be seven days colder”.

Artist’ impression of London Residences, West End.
Artist’ impression of London Residences, West End.

Mr Lee said he would have been willing to step aside as administrator at the meeting if there was a clear majority but otherwise he would “not be bullied”.

“It was pretty close with slightly more saying they wanted to replace me but they didn’t have the majority in terms of (debt) value,” he said.

Subbies United claims Mr Lee’s count was “at odds” with its calculations.

Mr Lee said the count did not include the largest debt claim, by Fortitude Valley-based developer Ferro Property Group.

He said the developer, which is behind the $27 million luxury seven-storey London Residences project at West End, had lodged its claim “with no paperwork attached” at 4.30pm the day before the meeting and its validity needed to be assessed.

“That claim is for just over $1 million so it is very material,” Mr Lee said.

“I could have put the resolution up at the meeting and it would have failed and I would have stayed (as administrator) … but I decided the prudent thing to do was adjourn for a week.

“So if the developer’s claim is deemed valid in the meantime, then the creditors that want me replaced will have the majority in both numbers and value and I will be rolled.

“But whoever the administrator is, they have to act for all creditors — including the subbies, the developer, trade suppliers, the ATO (Australian Taxation Office) and employees.”

Artist’s impression of London Residences, West End.
Artist’s impression of London Residences, West End.

Mr Goddard said Subbies United was also pushing for an independent investigation into the collapse of Bulkbuild as the company’s lawyers approached Mr Lee in February about its “impending administration/liquidation” but did not appoint him until May 18.

“In that three months, dozens of creditors continued to pour their resources into Bulkbuild’s projects …(and) fall into the trap which has the potential to destroy some of them,” he said.

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Filed Under: General News, Media Reports

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ABOUT US

SubbiesUnited is not “anti builder”, we support strong builders.
We are “anti theft” of hard working subbies money.

It’s not just about the builders who go broke, businesses all over Australia Liquidate every day for a variety of reasons.

It’s about the ones that engage in calculated criminal behaviour such as providing false information to the regulators or inducing subbies to work on a site when they know they cannot or are not going to pay them because of a fraudulent scheme. Its about the participation of the banks, pre insolvency advisors and builder appointed Liquidators to fraudulently defeat creditors.

Liquidators should always be appointed by creditors to ensure a thorough investigation takes place.

We want the rogues investigated and prosecuted for fraud so our goal is to pressure the Queensland Government to set up a fully funded Police Task Force to investigate and prosecute Construction Industry fraud.


  • SubbiesUnited was created to provide subbies with collaborative information on building companies that are showing signs of insolvency or struggling to pay their creditors. The signs are always there, we just need to get the message to each other before it happens.
  • We provide subbies with up to date news on builders in Administration or Liquidation and the best strategies to get a return.
  • There are some extremely litigious builders out there who would rather sue you than pay you. Often they sue you so they don’t have to pay you. We will expose them.
  • The construction industry is renowned for building companies setting up illegal Phoenix operations, shifting assets, then liquidating sending subbies broke. We work with other subcontractor & supplier organisations & Governments to stop what amounts to legalised theft on a massive scale though pre packaged liquidations. Insolvency is used as a means to defraud Subbies.
  • Our aim is to limit the financial damage before it happens with our “members only forum”, an early warning system for the benefit of all our members.

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