A construction company that completed projects at Taronga Zoo and Hayman Island has gone into voluntary administration.
New South Wales-based Viridi Group has found itself in trouble after its multimillion-dollar government contract was suspended, putting some 115 jobs at risk.
Ben Nurmi, CEO of Viridi Group, said news.com.au the contract was suspended due to “tax challenges.”
“The factory was set up to deliver certain products and we were halfway through that contract when we received notice that it was being discontinued,” he said.
Nurmi said the company is now working at a “limited capacity” and focusing on finishing work it had started before the contract was suspended.
The construction company had set up its factory to deliver products as part of a multimillion-dollar contract, but government work was suspended midway.
The company manufactures and installs temporary emergency housing (pictured), as well as luxury cabins and infrastructure in the education sector.
The CEO said the company was founded in 2020 and directly employs 15 people, although it has a large subcontractor base of between 90 and 100 workers.
“Staff will be reduced as deliveries are reduced, but at this time they are still working,” he said.
The construction company has worked on high-profile projects ranging from the InterContinental Hayman Island luxury cabins, Sydney’s Taronga Zoo wildlife refuge to Lismore emergency flood housing and the redevelopment of Sydney’s Cranbrook private school .
The company is a third-party manufacturer of prefabricated construction products and solutions in New South Wales, including defense projects, school infrastructure provision and modular housing for emergency housing.
Christopher Darin and Joanne Keating of Worrells were appointed voluntary administrators of Viridi Group on April 5.
In a statement of WorrellsThe administrator said the company director told them the move into voluntary administration was necessary due to the suspension of the government contract and to protect the interests of all key stakeholders.
Viridi Group CEO Ben Nurmi said the company was caught off guard when it learned of the suspension of the lucrative contract.
“The director appointed voluntary administrators as the only responsible course of action available after urgently exploring financial options and seeking professional advice from various parties,” Mr Darin said.
‘This decision has been extremely difficult.
“The administration process is in its infancy and we are working hard to immediately establish the Company’s financial position and the operations of the business, with a view to continuing to trade the business in a limited capacity during Voluntary Administration.”
The company’s financial problems forced it to enter safe harbor under the Companies Act in September 2023.
Safe Harbor is when directors can address a company’s financial problems behind the scenes, allowing the company to operate under the supervision of an advisor.
Nurmi said things were going well with the Safe Harbor plan, but that was based on the availability of revenue, with the government being a major revenue contributor.
“The CEO is confident that the company will get out of its problems and continue operating,” he said.
WhatsNew2Day Australia contacted Viridi Group and Worrells.