Administrators warned the creditors of a recently collapsed company its bills neared $20million, meaning they’re unlikely to recover their cash as it enters liquidation.
Gold Coast construction company Stokes Wheeler reportedly owed its workers up to $1.66million and unsecured creditors more than $13.5million before it entered administration in February.
It also owed $3.2million to secured creditors, mostly Westpac.
The high debt means unsecured creditors are unlikely to see their money returned as Stokes Wheeler entered liquidation this week, the Courier Mail reported.
Administrators, Roland Robson and Bill Cotter from Robson Cotter, previously uncovered six project trust accounts but all had no funds.
Stokes Wheeler’s retention account, which was also created to help repay its debts, had a shortfall of $2.7million.
It has since been frozen by the Queensland Building and Construction Commission.
The company claimed it is owed more than $5.3million in retentions from developers, some of which refuse to pay due to rectification and termination concerns.
Less than 10 per cent of that cash has been deemed ‘realisable’ by administrators.
Stokes Wheeler’s directors, Damien Stokes and John Wheeler, had earlier drafted a deed of company arrangement in a last-ditch attempt to avoid liquidation.
However, creditors on Monday voted for the company’s dissolution.
Administrators in March revealed the company had faced financial pressure for five years after taking on multiple loss-making projects.
‘Preliminary investigations indicate that it is suspected that the Company did trade while it was insolvent,’ their report said.
Stokes Wheeler’s voluntary administration saw construction of four major projects halted, including a 40-apartment building at Palm Beach called Elevaire under Evoke Property.
Others included the Bounce Hostel in Surfers Paradise, a medical centre in Pimpama and an aged care facility in Sunnybank.
Contracts for all four were subsequently cancelled.
More to come…
Gold Coast construction company Stokes Wheeler reportedly owed almost $20million when it went into administration
