Fighting for Subbies Rights
Doca Versus Liquidation
A high level assessment by Jirsch Sutherland (Administrators) is that the DOCA offers a better outcome than Liquidation for subcontractors.
The public company Onterran is not the cash cow we would hope for.
Looking at it purely on a commercial basis, the dividend of up to 16.5 cents in the Dollar is better than zero that Bloomer in liquidation offers to subbies.
What the Administrator also says is that under the DoCA, subbies will get several million more than liquidation through the Subcontractors Charges Act.
DoCA:
|
PROS |
CONS |
|
Up to 16.5 Cents in the Dollar paid. |
No insolvent trading claims |
|
Sub-contractors charges get paid first from project payments meaning $6,680,427 to subbies |
No call on the Onterran Cross Guarantee |
|
Potentially another $1,994,593 for unsecured Subbies and Suppliers |
|
|
No preferential payments to be clawed back from Subbies and Suppliers. |
|
Liquidation:
|
PRO |
CONS |
|
Zero to 2 cents in the dollar paid |
Subbies exposed to $9m of preferential payments clawbacks. |
|
Claims of insolvent trading (if funded) |
Liquidation will take up to 3 years |
|
Claims on Onterran Cross guarantee (if Funded) |
Lawyers and liquidators will earn millions in fees |
|
|
Likely receivers will be appointed |
Note: many of the large corporate companies that are trying to wind up Bloomers have caveats on Bloomers property or have securities. This means that regardless, they are in a better position than the average subcontractor.
If they are successful in driving Bloomer Constructions to Liquidation, the average subbies will get SWEET F#@K ALL.
If Bloomer goes into Liquidation and we get absolutely nothing, the subcontractors of Queensland can pay their thanks to the large corporate companies who will be named in the event of liquidation.
Link to printable version of the DoCA affidavit.
Email to:
Rob Berry - rberry@atlasgantt.com
DesB@jirschsutherland.com.au