gold coast property developer Resort Corp will meet with creditors to work out a plan to rescue the company after being placed in voluntary administration.
The company, which is owned and run by Paul Brinsmead and Peter Madrers, was placed in voluntary administration after failing to secure funding to continue trading.
Lawyer Andrew Robinson, who is representing the directors of Resort Corp, says the company has been struck by the credit squeeze that is lashing the commercial property sector.
“They’ve built a lot of stuff that they can’t sell at the moment. Even if they are balance-sheet and asset positive, they can’t pay their phone bills. Under Australian law they have no choice but to go into voluntary administration.”
Creditors are owed around $300 million, but that is covered by assets on the company’s balance sheet, according to valuations made over the past 12 to 18 months.