The liquidator of a failed Gold Coast builder has found the company did not hold enough assets to perform the amount of work it was undertaking. Meanwhile, the director has made a claim of his own. DETAILS:
Kathleen Skene Follow 7 min readJune 12, 2022 - 1:57PM Gold Coast Bulletin
The liquidator of failed Gold Coast builder Pivotal Homes has found the company did not hold enough assets to perform the amount of work it was undertaking.
As a result, director Michael Irwin may personally have to find up to $550,000 to tip into the liquidation fund.
Meanwhile, Mr Iwin has emerged as the second largest unsecured creditor of the company, claiming he’s owed $417,670.
Pivotal’s licence history shows it had a maximum revenue limit of $30m but logged 211 residential construction jobs worth $56.7m in 2020-21.
It logged 105 jobs worth $30.5m in the current financial year.
Liquidator Chris Cook found Pivotal had lodged two deeds of covenant, worth $350,000 and $550,000 in order to meet financial requirements of its building licence.
Deeds of covenant are provided by a third party, usually a director, as an assurance to support the company when it doesn’t meet the asset requirements for its licence category.
The deed amount can then be claimed by the company in the event of a liquidation.