Unsecured creditors of construction company York Civil are unlikely to see any returns from the business.
Creditors voted unanimously to liquidate the company at its second creditors’ meeting on Monday afternoon.
In a report provided to creditors, the company’s administrators, Martin Lewis and Timothy Mableson from accounting firm Ferrier Hodgson blamed York Civil’s failure on a number of joint venture projects, which placed a strain on the company’s financial position and time of senior management.
The joint venture projects included Adelaide’s Torrens to Torrens road upgrade, East Link tram extension and perth‘s Swan River pedestrian bridge.
“At this stage, it is unlikely that there will be a return to unsecured creditors of the company,”
the administrators said.
Employee creditors may be able to recover their outstanding entitlements under the Federal Government’s entitlement safety net, the Fair Entitlements Guarantee.
Report reveals dire financial position
York Civil ceased trading in August and was placed into voluntary administration.
The administrators estimated the company has $43.6 million in liabilities, but holds just $7.8 million in assets.
The liabilities include $7.9 million in employee claims and $15.9 million owed to…
