One year ago today Condev directors appointed a Liquidator.
Condev directors made a big deal of how much they cared for their subbies but the evidence does not support that.
Subbies Were Induced to Keep Working, even as late as the 13th March. That resulted in subbies incurring further Losses from 2nd to 16th March 22.
Liquidator Worrells were in talks with the Condev accountants and their Law firm from the 2nd March 2022. The date of appointment was 16th March 2022.
From Worrells "Advice to Creditors 23rd March 2022.
Five sites were finally locked up on Saturday 13th March 2022 but even on that day, in a Gold Coast Bulletin article, a Condev director was still asking subbies to come to work on Monday.
So from the 2nd March when Condev first contacted Worrells until the appointment, it was 15 days. In that time subbies were working on sites, oblivious to the financial problems and accumulating and compounding their losses.
Even after the lockout on Saturday 13th, a Condev director was still asking subbies to come to work on Monday 15th March 2022 via the media.
"Ms Marais insisted all subcontractors, suppliers and staff had been paid to date.
Her message to subcontractors on Monday morning was simple: "Please come to work today.”
Ms Marais told the Bulletin "the company was still solvent but needed help".
This was the first "media friendly" builder liquidation.
Normally directors run a mile but the Condev directors took the media along for the ride and the media loved it. This was despite numerous warnings from SubbiesUnited for the media to stop treating the directors like media darlings and start asking hard questions but thats how it played out until even they realised there was no pot of gold at the end of the rainbow.
We sat through tearful press conferences where they pleaded with subbies to come to work. We saw photos of Business of The Year award presentations but what we didn't see was the havoc wreaked on subcontractors who were now 32 million worse off.
It was all about poor us but nothing about subbies.
Condev were broke owing almost 40 million, 32 million of that was to unsecured creditors and a large chunk of that would have been accrued in the 2 weeks between them talking to liquidators and actually appointing them.
Condev should have seen the writing on the wall in their previous years financials when they turned over 181 million for a profit of 358k, pocket change and window dressing."
In any event, despite the insolvency of the company, the directors have benefited by moving into their new 3 million apartment.
The Condev directors had a well publicised exit strategy - Gold Coast Bulletin. In normal times no one would begrudge them that.
In a statement, Tracy Marais said:
“The contract to purchase an apartment was signed for $1.84m in 2020, shortly after Covid was detected in Australia and almost two years before Covid killed Condev in March, 2022.
“It was a decision made over two years ago as part of my retirement planning. I am 63 after all and we’re all entitled to downsize from a family home.
“Our house went to auction in May as a result of the Condev crash, and of course the liquidators took all of Steve’s share leaving me with enough from our house proceeds and my pension to buy a home.
“We spent 21 years in our first home and 21 years in our second home and I’m planning this to be my home for the next 20 years or more.
“Everyone should manage their exit strategy so that it does not manage them."
“Money isn’t our driver; family first. Condev was a family for so many years and we cherish that and lament the cruel circumstances that led to the company’s demise.’’
What opportunity did those hundreds of unsecured subbies who lost over 32 million, have to manage their exit strategy before it managed them?
Subbies add a level of protection to your business and join SubbiesUnited and make use of our private members forum for up to date information but a warning, do not join if you are NOT a subcontractor, we will weed you out, you are not welcome.