An established Brisbane construction company being watched by the QBCC has gone bust owing millions to almost 200 creditors. SEE THE LIST OF CREDITORS.
Hayden Johnson, The Courier-Mail Subscriber only|February 11, 2020 9:30am
SUB-CONTRACTORS and workers are owed a staggering $4.1 million following the shock collapse of a major Queensland construction business.
Details on the extent of the collapse of MJM Projects, trading as Vystal Construction and Development, can be revealed.
The failed building company owes 182 secured and unsecured creditors $3.99 million, a financial report authored by liquidator Steven Staatz reveals.
A further eight priority creditors, workers and the Australian Taxation Office, are owed $137,378 - taking the total to $4.1m.
Vystal Constructions is run by director Martin Graham and was part of the Vystal Property Group.
It is understood the wider Vystal group is unaffected by the liquidation.
The Carrara construction company, which claimed a strong reputation in the building industry for “benchmark setting, high-calibre homes”, collapsed on January 29.
Mr Staatz’s early investigations suggest most creditors are unlikely to see a cent of the money owed, with the liquidator tipping a deficiency of $4.2 million once his liquidation fees are taken into account.
Mr Graham, who headed the company for 15 years, was contacted for comment.
A report on the amount of money owed to the company reveals $5470 is outstanding.
Red flags were raised on this company as early as April 2019 on SubbiesUnited private members forum. The QBCC would no doubt have been made aware between April to July 2019 yet they lasted another 7 months.
The company quoted one subcontractor 4 different ABN's. In April they were in trouble using the old chestnut;
"We are waiting on a payment so we can pay you."
When a subcontractor hears that rubbish, they should run a mile as fast as they can and put space between them and the builder.
The following conditions were placed on the licence on 22nd November 19. Too little, too late QBCC.
MJM Projects is to provide monthly reporting to QBCC, by close of business on the 10th of each month,
consisting of: (1) balance sheet and profit & loss as at the month end date; (2) balance sheet for any related
entities owing monies to the company as at the month end date; (3) aged debtors and creditors listings as at
the month end date; (4) evidence in writing that the company's creditors are being paid in accordance with
agreed terms and conditions; (5) evidence in writing that any agreed repayment arrangements made with
creditors are being complied with; (6) ATO Portal activity statements for the integrated client and income tax
accounts. MJM Projects Pty Ltd is to provide copies of any proceedings by any creditor, whether by claim or
statutory demand or application to wind up. MJM Projects Pty Ltd is to immediately notify QBCC of any
significant changes that may adversely impact its' financial position