Glen­wood col­lapses

Townsville Bulletin - - Investor - busi­ness edi­tor Tony Rag­gatt phone 4722 4439 email: tony. rag­gatt@ townsville­bul­letin. com. au by Tony Rag­gatt tony. rag­gatt@ townsville­bul­letin. com. au

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.

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