sydney construction firm Next has reportedly entered voluntary administration, as its owner seeks a deal with creditors to avoid total collapse.
The Australian reports Next, focused on aged care and student accommodation buildings, is the latest constructor to falter under sky-high material and labour costs and COVID-19 delays.
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The firm has recruited administrators Hall Chadwick to handle its operations, as it works to resolve some $15 million in unpaid debts.
Speaking to the paper, Hall Chadwick partner Sule Arnautovic says some $5 million of that total is owed to unsecured contractors and creditors.
But Arnautovic says Next director, Joseph Di Girolamo, was attempting to avoid liquidation by brokering a deed of company arrangement with creditors.
If successful, the move could allow Di Girolamo to oversee the completion of Next’s current projects, amend defects, retrieve payments, and reimburse employees, Arnautovic says.
The precise structure and future of Next’s operations past that point is unclear, he added.
The proposal is expected to reach creditors within the next six…
