G C B Constructions Update

04-08-23

There is not much to say here until we see the proposed Deed of Company Arrangement (DOCA).

A DOCA can have its advantages other than a few cents in the dollar.

David Stimpson from SV Partners has offered to keep subbies/creditors up to date.

John

As discussed, update below:

• Pyramid Capital (the third security holder) appointed a receiver to the whole Clark Group, including GCB last Friday.  On Wednesday, the receiver resigned over all companies and property in the Clark Group.

• The appointment of the receiver naturally delayed progress in the Administration.

• Work on all sites has ceased and employees terminated.

• The following projects have been terminated and works taken back by the developers:

• Aria – Canopy House
• Si Bilinga Trust
• SCU Private Hospital
• Vantage View
• Vantage Burleigh
• Caboolture Private Hospital

Any subcontractors seeking to obtain belongings from these sites should contact the developers.

• The following projects have not been terminated as far as we are aware:

• Marine Quarter Southport
• Cote Palm Beach
• Wategos, Byron Bay
• 35 Garden St Southport
• Tallebudgera SLSC

                Any subcontractors seeking to obtain belongings from these sites should contact Sarah Brown at Slattery Auctioneers.

• At this point, the director is planning to propose a DOCA, which is likely to centre around:

• Transition of non-terminated projects to a new builder,
• Injection of third party funds,
• Sale of company assets and collection of outstanding progress claims/retentions where possible, and
• Funding costs to pursue the two legal actions on the Polly project and the Drift project, total estimated claims are c$17m.

• We are continuing to investigate the company’s affairs, including an analysis of the reasons for the company’s failure, insolvent trading and voidable transaction investigations.

• Subject to extending the second meeting of creditors, it is scheduled for 30^th August 2023.

Please feel free to email me if any questions.

Regards

David Stimpson Executive Director

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