A director of J.M. Kelly has been grilled in court over why the struggling building company made loans totalling more than $2 million to firms with no assets in the lead-up to its collapse.
Glen Norris, The Courier-MailSubscriber only|
STRUGGLING building company J.M. Kelly Group made loans totalling more than $2 million to firms with no assets in the lead up to its collapse last year, a court has heard.
The Federal Court heard that the transfers in 2017 from J.M. Kelly Builders, the main operating arm of the construction firm, to other companies within the group that had negative assets on their balance sheet of over $10 million.
The revelation came as J.M. Kelly director John Murphy continued to give evidence into the $50 million failure of the Rockhampton based company that cost 200 jobs.
Mr Murphy, under questioning from barrister Craig Wilkins who is acting for liquidator Derrick Vickers, said he could not recall the loans or why they had been made.
He denied he and his sister Elizabeth, the group’s financial controller, were the only people authorised to ....