Update 19.05.17
It would appear at this early stage that this business was a very poorly run operation.
Two questions have to be asked;
- Where does 15 to 20 million dollars of subbies and suppliers money go?
- Who would sign a contract giving the client an all encompassing "General Security over all the assets of the company"? You cannot blame the client but you can blame the director of CMF.
- The liquidator told me today it was "the most robust contract I have ever seen". He has been in the business for 30 years.
A clear warning sign to subcontractors and suppliers
If a builder is behind on the project like this one was and asks you to ramp up your supply to make up time, the alarm bells should ring. In this case, subbies and suppliers poured more resources into the project and have lost the lot if this is an accurate assessment.
Many subcontractors I have talked to over the past two days say the figures attributed to them on the creditors report grossly understates their true loss.
This is devastating and another blow for Queensland subcontractors and suppliers.
Click here for a printable version of the report below.
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Updated 16.05.17
The numbers are much larger than first thought and could be in excess of 12 million dollars with all the "unknown's" and the usual understated numbers not including the most recent claims not submitted because they are not yet due.
Read the CMF - First Report to Creditors here.
SubbiesUnited and Subcontractors Alliance both agree that after consultation with some of the creditors, it's in the best interests of creditors to change the Liquidator from the Builder appointed Liquidator to a liquidator appointed by the creditors. If you don't agree with that, contact us and tell us why.
If the liquidator would like to contact us, by all means do so.
This has to stop. In the past week there has been 5 liquidations with at least 3 more coming that we are aware of. Its disastrous for the industry, for subcontractors, for builders, developers, the QBCC and all the other industry participants.
It gives us no pleasure knowing we were right when we said there was a tidal wave of liquidations on the horizon. It is now almost upon us.
Any subcontractor who would like to have input in what we are organising, please email support@subbiesunited.com.au.
The first email I received about this company going into Liquidation was after midnight last night. This morning there have been a number of phone calls, texts and emails from people who have lost a lot of money.
It's nothing short of amazing that on Tuesday, the MBA told a gathering of roofing subbies that there is no evidence of increased builder liquidations. Surely they jest.
I have never seen the likes of the almost daily tidal wave that has hit the industry.
Liquidation
Yesterday, CMF Projects Pty appointed David Clout & Associates who submitted a form 505 with ASIC to liquidate the company.
It's called a Creditors Voluntary Liquidation.
The liquidators details are:
David Clout and Patricia Talty
105A Bowen Street Spring Hill
Phone: 073129 3316.
If creditors would like to contact me at support@subbiesunited.com.au, we might be able to assist you.
As of this morning, the QBCC licence was still active but I have notified them and they are looking into it.