Creditors face dilemma

Bluestone liquidator needs cash to launch action

PEOPLE owed money by collapsed Gold Coast company Bluestone Constructions have been told they’ll have to hand over more cash if they want any chance of recovering the $6.3 million they’ve lost.

Liquidator Jason Bettles, of Worrells, yesterday said that there were no funds left in the liquidation to pay for any further investigations or to pursue recovery actions through the courts.

Mr Bettles said he was asking creditors whether they were willing to fund such actions, which would include establishing whether Bluestone traded while insolvent.

Bluestone, the construction contractor for the 255-unit Waterford apartment project at Bundall, collapsed in February owing $6.329 million.

Its sole director is Richard Matthews, son of long-time Gold Coast developer Larry Matthews. In August Larry Matthews vowed to pay back subbies and others who lost money in the collapse.

“It is my intention to pay creditors,” he told the Gold Coast Bulletin.

“This will come from the sale and settlement of assets within the Matthews Property Group”.

Last week the Australian Taxation Office filed an application in the Federal Court to have Waterford Bluestone Project wound up.

Mr Bettles said matters relating to Bluestone Constructions that could be further investigated if funding was available included whether preferential payments were made by the company in the six months prior to its winding up.

He said 110 payments which might be considered preferential, developer Management and totalling $7.638 million, were made by Bluestone Constructions.

The liquidator said he also did not have funds to seek the recovery of $900,014 from Rowena Matthews, who was related to Richard Matthews, under a deed of covenant and assurance with the company and the Queensland Building and Construction Commission. He said information passed on by creditors about the involvement in the company of Larry Matthews, who was not a Bluestone director, had been passed on to ASIC.

“We have been advised by creditors that Mr Matthews was involved in the day-to-day operations of the company leading up to the appointment of liquidators.”

Earlier this year it was revealed Larry Matthews, at the time permanently excluded by the QBCC had “personally contributed funds” to help a financially troubled Bundall project developed by his son.