Fed-up unpaid subcontractors are taking court action over the collapse of a Queensland building company, putting its sole director and his Big Four bank in the firing line.
Bill Hoffman, Sunshine Coast DailySubscriber only|June 24, 2019 5:17am
UNPAID Walton Construction unsecured subcontract creditors fed up with the lack of progress made in clawing back funds, have petitioned the Federal Court for a significant change to the process.
An application was filed in the Federal Court of Brisbane late Friday for the appointment of a Special Purpose Liquidator with the specific role of bringing claims against Walton Construction's sole director Craig Walton and his banker the NAB.
Michael Caspaney of Menzies Advisory, who has become Queensland subbies' liquidator of choice, would drive that specific action if the application to be heard by Justice Roger Derrington on Thursday was granted.
Mr Caspaney was also the subcontractor-appointed liquidator to the Cullen Group as well as Ashtay Group trading as CMS Construction.
The October, 2013, collapse of Walton Construction and its wholly-owned subsidiary Walton Construction Queensland left debts of more than $90 million, although the NAB managed to retrieve all of its own exposure before that occurred.
Subcontractors Alliance leader Les Williams said the latest move was in the interests of 1400 unsecured creditors still unpaid any of the money they were owed when Walton closed its doors in Brisbane in October 2013, only to re-badge and re-open the next day as Peloton and the Tantallon with the same staff, equipment and vehicles.
He said current liquidator Grant Thornton had said it would neither support or oppose the appointment.
"The current liquidator decided on legal advice not to pursue the claims," Mr Williams said.
"Our legal advice is different. We will need a Special Purpose Liquidator to run the claim so are seeking to have Michael Caspaney appointed.
$1,800,000 in liquidators fees and for what? That could have been $1,285.71 back in the pockets of every unsecured creditor.