melbourne-based property developer Bensons Property Group has avoided being plunged into liquidation after creditors signed off on a rescue deal, settling for half of what they are owed.
Bensons, which collapsed in December with more than 1000 homes under construction worth about $1.5b, owed creditors more than $811m.
Among those owned money are builders, other tradies, investors and a number of state government revenue offices.
Creditors on Friday accepted a rescue deal put forward by the company in which the family founders of the group will tip in close to $480m over the next three years to strengthen the groupās financial standing.
Administrator KordaMentha had recommended creditors take the rescue deal, saying creditors would secure $414m under it as opposed to just $625,772 paid to employees if the company was liquidated.
Bensons was founded in 1994 by multi-millionaire winery owner Elias Jreissati.
Itās understood the company is working on 1300 projects nationally, including the construction of 740 apartments across Melbourneās suburbs, with an estimated collective value of $452m.
In a statement published on Friday, Bensons said the decision was ānear unanimousā with 98 per cent of creditors voting in favour of the…
