The boss of a collapsed building company may have transferred $2.5 million to its boss as a “director’s loan” in the months before the business went bust, according to the liquidator left to wade through the mess.
That figure is more than the total money owed to creditors.
Victorian construction firm Area Projects Pty Ltd went bust last year after being in business for almost three decades specialising in new homes, townhouses and renovations.
Headquartered in the melbourne suburb of Mulgrave, Area Projects had 15 employees at its peak but hadn’t been trading for several years. Brett Mcgauchie was its sole director.
Customers had been trying to get out of their contracts as projects stalled, calling the situation “horrendous”, but they didn’t know the full extent of the problems until a liquidator’s report, lodged with the corporate watchdog ASIC, laid it all bare.
John Morgan of insolvency firm BCR Advisory, the appointed liquidator, wrote in his report that Area Projects is believed to owe at least $2.3 million to creditors.
He was able to track down one bank account that belonged to the company, and all that was left was an overdrawn amount of $20.
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