An elderly woman, now suffering from dementia, was the sole director of a JM Kelly company that took on large debts from other firms in the now failed building group, a court has heard.
Glen Norris, The Courier-MailSubscriber only|October 22, 2019 6:53pm
THE story behind the $50 million collapse of JM Kelly Group gets more complex by the day.
The Federal Court on Tuesday heard that the 80-year-old mother of JM Kelly financial controller Elizabeth Murphy was the sole director of a JM Kelly company that took on large debts from other firms in the now failed building group.
Barrister Craig Wilkins, acting for JM Kelly liquidators PwC, told the court that Noreen Murphy was the director of GJ Murphy Holdings in June 2018 when it assumed debts of $1.65 million from other companies within the Rockhampton-based construction firm.
The court in Brisbane heard that the JM Kelly Group made a series of other complex loan transfers as the Queensland Building and Construction Commission (QBCC) probed the struggling construction firm to see if its licence should be revoked.
Mr Wilkins said the effect of the loan transfers was to appear to “wipe the balance sheet clean” for companies in the group holding building licences with the QBCC.
Mr Wilkins asked Elizabeth Murphy whether her mother did any due diligence on the debt being taken on before agreeing to the move.