Major construction companies specializing in road construction have gone bankrupt and reportedly owe their creditors more than $80 million.
Allroads Pty Ltd, a Brisbane-based civil construction company, and its subsidiary Allroads Plant went into receivership on 4 March.
Administrators Darryl Kirk and Stephen Earel, partners at insolvency firm Cor Cordis, have written a creditors’ report outlining how both companies together owe $83 million to almost 1,000 creditors.
Construction companies specializing in road construction have collapsed and owe their creditors more than $80 million (pictured is an upgrade of the New England Highway in southern Queensland)
Cor Cordis was unable to provide the report on Monday, but news.com.au reported that Allroads Plant owed $59 million and Allroads had outstanding debts of $24 million.
Late last month, the Queensland Supreme Court ordered Allroads Pty Ltd into liquidation, meaning the assets must be sold and the profits divided among creditors.
David Stimpson, chief executive of accounting group SV Partners in Queensland, was appointed liquidator.
Allroads specialized in civil construction, with 200 million dollars in important highway and defense projects in Brisbane, Gold Coast and Townsville when it initially went into administration.
The company had lucrative contracts with the Queensland Department of Transport and Main Roads and the federal Department of Defence, tender documents showed.
The Australian Securities and Investments Commission expects default rates over the last financial year to have hit an 11-year high, with Reserve Bank interest rates now at a 12-year high of 4.35 per cent.
Allroads Pty Ltd, a Brisbane-based civil construction company, and a subsidiary Allroads Plant went into receivership on 4 March. Administrators Darryl Kirk and Stephen Earel, partners at insolvency firm Cor Cordis, have written a creditors report outlining how both companies together owe $83 million (pictured a road upgrade in Indooroopilly, in inner west Brisbane).
