Gold Coast subbies have a potential “get out clause” enabling them to avoid the firestorm which will see them pay back millions of dollars as part of the Cullen Group liquidation
Paul Weston, Gold Coast Bulletin Subscriber only|August 14, 2019 7:13am
GOLD Coast subbies have a potential “get out clause” enabling them to avoid the firestorm which will see them pay back millions of dollars as part of the Cullen Group liquidation.
A Bulletin report at the weekend detailed how subbies, already out of pocket, may have to pay back millions of dollars after a liquidator alleged they were given preference payments.
A claim has been made against 29 subcontractors for $8.4 million allegedly paid out in the six months before the company collapsed in December 2016 and the Robina site for the Boheme apartments locked down.
Andrew Harris, a senior taxation and insolvency advisor based with The Harris Group on the Coast, said subcontractors should have been advised of such contingent liabilities, their potential defences and other strategies.
Subbies are stunned by the development and unsure whether to return the funds or stage a legal action.
“Unfortunately, this type of outcome is more about the general poor level of advice available to these parties, especially on the Gold Coast,” Mr Harris told the Bulletin.
“For all the talk by the Subbies United, these actions are always fertile ground for administrators and unfortunately some subcontractors will bear further loss, absent better advice or previous better planning.
So what's the "get out clause" Mr Harris? Weave some magic for the subbies please because nothing you have said so far changes SFA.