Fighting for Subbies Rights
Statement from Wayne Bloomer to Creditors
To Our Valued Subbies and Suppliers.
I am writing to advise you that today, Bloomer Constructions (Qld) Pty Ltd entered Voluntary Administration (VA) under section 436A Corporations Act 2001.
The decision to enter VA was not taken lightly but is a necessary step for Bloomers to address their financial affairs. Our assets are contingent on our building contracts, but unfortunately, we have insufficient cash flow to meet ongoing operational and construction requirements.
As this is a cash flow issue and is related to the underlying assets of Bloomer’s, we found it necessary to initiate the VA process in order to rebalance Bloomer’s' operations and financial position.
The VA means we are now operating under the supervision of Sule Arnautovic of Jirsch Sutherland (Administrators).
Bloomer’s Management will continue to assist the Administrators of Bloomer’s during the possible restructuring, with the Administrators reviewing our cash flow and reporting to the Creditor on a statutory basis. Required building work, if any, will be in the interests of preserving contract retentions and project debtor’s accounts.
Payments for Good & Services Post Appointment
As we work with the Administrators of Bloomers, we are able to pay for post-appointment goods and services provided to Bloomer’s in the normal course of business, on a cash up front basis.
Payments will be made in accordance with those terms, pursuant to the Administrators consent. To back up this assurance, we are taking steps to make certain our Subcontractors and suppliers are paid in full on a cash basis for goods and services delivered after the appointment date.
These actions are to preserve retentions, debtors and clients of our construction contracts.
We have limited liquidity as a result of our monthly cash flows from operations and additional advances committed to by a related company which provides head office and administrative functions to Bloomer’s.
We expect the combination of limited cash on hand, cash flow from operations and cash from the related company will be sufficient to purchase goods and services and to fund normal operations throughout the restructuring process.
To provide Bloomer’s with the opportunity to address its structure and propose a plan to its creditors and investors, the Voluntary Administration period stays all proceedings against Bloomer’s and prevents payment for goods and services received before the appointment date. Generally, debts incurred by the Bloomer’s up to 26 April 2017, cannot be paid at this time.
The VA allows companies to restructure their financial affairs and address the pre-appointment debt into a formal Plan- Deed of Company Arrangement. During the restructuring period, a formal Plan of Arrangement is prepared and ultimately presented to investors and creditors for approval.
We sincerely regret any hardship this may cause you. During the restructuring period, we will be working closely with Administrators to keep you up to date of the status.
Regular updates will be available on the SubbiesUnited.com.au web site as well as contact details for any queries you may have.
Regards
Wayne Bloomer
Administrator Appointment
Today, Sule Arnautovic and Trent Devine of Jirsch Sutherland were Appointed as Voluntary Administrators of Bloomers Construction.
Sule was suggested by a member of Subbies United largely due to his strong and successful results with Construction Administration.
For this reason Director Wayne Bloomer agreed.
Within 8 business days, the Administrator will hold the first meeting of creditors. Whilst all meetings are important, to best understand what the prospects are for you to receive some monies back, the first meeting of creditors has 2 mandatory resolutions:
- Confirmation of the Administrators appointment , &
- The formation of a committee of Creditors.
Other than these resolutions, the meeting will have general discussions of what went wrong and what may be available options to creditors moving forward.
WHAT YOU NEED TO DO
If you would like to attend the meeting, please prepare a proof of debt- with supporting documents of how much you are owed. ie: (invoices, contracts etc).
For those who won't or can't attend - We will post notes from the meeting on the website.
If you're not a member and are like many subbies, financially struggling, contact me at support@subbiesunited.com.au and I will join you up. I need your name, company name, phone number and a username. Those that can pay should pay.
Project Bank Accounts
Keep in mind that while Wayne Bloomer and his staff have worked their guts out to pay in excess of 11 million dollars to subcontractors and supplier, some subbies have not been paid and we feel for them, its heartbreaking for those affected.
While Master Builders Qld who represent big builders are against it, Project Bank Accounts (PBA's) will go a long way towards addressing this problem in future and Les Williams and his Subcontractors Alliance directors have done some amazing work for subbies. To date, it has all been at their own expense.
Their work on Security of Payment Legislation with the Queensland Government, represents subcontractors best hope and PBA's are a central part of that.
Please do what I did, open the purse strings and donate to this excellent organisation to help secure payments for all subbies in the future.