Aussie builder cites rising costs for shock liquidation
Up to 300 property owners have been left in the lurch by the insolvency of the Queensland-based residential construction company.
Robson Cotter Insolvency Group has been appointed liquidator of Oracle Building Corporation, which traded as both Oracle Platinum Homes and Oracle Hunter Homes, in a creditors voluntary liquidation (CVL).
Though inquiries are in their preliminary stages, it is believed that total creditor claims — both secured and unsecured — potentially enter the vicinity of $14 million.
Approximately 300 home owners who hold building contracts — ranging from not yet commenced to nearly completed works — are set to be affected.
A residential construction home corporation operating mainly in South-East Queensland, the Hunter Valley, and Central Coast with its head office in Underwood, Queensland, it’s been revealed that the company’s staff have also all been terminated effective immediately.
A statement from Robson Cotter Insolvency Group reads: “The liquidators and their team have commenced a process to secure the company’s assets and to review the company’s financial position and communicate with all affected stakeholders. The liquidator’s role is to take control of the business, property, and affairs for the benefit of the creditors.
“We have commenced this process and initial communications to the affected parties will be issued in the coming days in accordance with the requirements of the Corporations Act.”
Oracle Platinum Homes director Tom Orel is said to be cooperating fully in the hope of maximising the prospects of recovery for all classes of creditors.
He credited several factors contributing to the company’s present predicament, including the increasing costs of materials, which have eroded the corporation’s margins and extensive delays in the process of securing supplies and labour.
He stated that these led to cost overruns and delays in project completions, impacting the cash flow of the company and its ability to continue normal operations despite the best endeavours of Oracle’s operators and staff.
The liquidator will continue its investigation into the matter, reporting accordingly to creditors in line with the requirements of the Corporation Act, indicating that advice of prospects for recovery of amounts owing will be reported in due course.
A report to the Australian Securities and Investments Commission (ASIC) on the conduct of the officers of the company and the undertaken investigations will also be compiled in compliance with legislative guidelines.
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