A Queensland building company has gone into liquidation owing about $20 million to creditors, many of which are unlikely to recover the full extent of their losses.
Veteran construction company Stokes Wheeler had four projects under construction on the gold coast whose contracts have now been cancelled.
The largest project, a block of 40 apartments at Palm Beach, is being developed by Evoke Property who is seeking to recover $6.49m in debt according to the Courier Mail.
Stokes Wheeler was also building an aged care facility in Sunnybank, a Hostel in Surfers Paradise and a medical centre in Pimpama.
A number of loss-making projects put financial strain on the commercial construction company, and in February, it went into voluntary administration.
A report lodged with ASIC last month by administrators Bill Cotter and Roland Robson, said that the company owed employees up to $1.66m.
Debts of more than $13.5m were thought to be owed to unsecured creditors, and an additional $3.2 owed to secured creditors, including Westpac bank.
The company’s six project trust accounts were all without funds and its retention account had a shortfall of $2.7m, according to the administrator’s report.
Unsecured creditors were warned at the time that…
