THE construction industry is mourning the collapse of one of the State’s biggest builders, Cairns-based Glenwood Homes Pty Ltd, and bracing for the fallout on the s e c t o r , p a r t i c u l a r l y a t Townsville.
The company has contracts on the building of 44 homes in Townsville and four in Cairns.
While the company has debts said to total $ 30 million, it is understood debts to unsecured creditors such as sub-contractors and suppliers in Townsville will run to well over $ 1 million.
‘‘ It is a very sad day particularly in the building and construction i ndustry i n North Queensland and Far North Queensland,’’ Masters Builders Association r egional manager Jo Lynch said yesterday.
‘‘ It’s like losing another member of our family.’’
G l e n w o o d H o m e s w a s placed in voluntary administration yesterday by its founder and director Udo Jattke after a long-running battle against depressed market conditions and mounting debts. Glenn Miller and Moira Carter of BRI Ferrier have taken control of the company.
Mr Miller said they would call a meeting of creditors within eight days. ‘‘ We will be looking at the financial position of the company and report to creditors about the company’s future,’’ he said.
He said they would be e x a mining housi ng c o n- tracts to decide which were commercially viable to complete and negotiating with regulator the Queensland Building Services Authority on the appointment of builders.
QBSA general manager Ian Jennings said the authority would work closely with affected consumers to assess their entitlements under the statutory home warranty insurance scheme and to assist them complete their homes as quickly as possible.
He said sub-contractors and suppliers owed money s houl d c o nt a c t a d ministrators, while those who had prefabricated supplies or incomplete work should contact the authority so future works with existing subcontractors and suppliers could be co-ordinated.
‘ ‘ U n f o r t u n a t e l y , c o n - sumers, sub-contractors and much of it owed to the Commonwealth Bank.
However, settlements to a Gold Coast company could not come soon enough.
‘‘ Without a clear timeline on the settlement of land assets to raise vital capital I could not afford to keep the company afloat,’’ Mr Jattke said. ‘‘ This is the saddest day of my life and I especially feel for the staff who supported me so strongly through a very difficult 12 months.’’
The firm employed 24 people in Townsville and Cairns.
In the boom days Mr Jattke wa s t h e s t a t e ’ s b i g g e s t builder and one of Queensland’s richest people.
However, now he will be selling the family home.
‘ ‘ ( Our family) discussed where we would move to and I told my kids that their dad will be working hard to pay off what he owed,’’ he said.