Glenwood’s suppliers and subcontractors to take a hit
T O W N S V I L L E s u b - contractors and suppliers could take as much as a $ 5 million hit from the collapse of Cairns builder Glenwood Homes Pty Ltd.
The company’s suppliers gathered for the first creditors meeting in Townsville yesterday where the news from one of the company’s a d m i n i s t r a t o r s , M o i r a Carter of BRI Ferrier, was that Glenwood Homes and an a s s o c i a t e d c o m p a n y Glencorp Property Pty Ltd would likely be liquidated.
She could not say how much would be returned to u n s e c u r e d c r e d i t o r s although there was a risk of a nil return, depending on
Udo Jattke the prices that could be achieved for the group’s major assets of land. Glenwood Homes and Glencorp Property were placed in voluntary administration on March 11. Glenwood founder and director Udo Jattke said he was sorry for the outcome and was working with the Building Services Authority to have Glenwood’s subcontractors and suppliers used in work to complete the home building contracts.
Mr Jattke said the global financial crisis had knocked the group and the big wet season had finished them off.
Ms Carter said the Commonwealth Bank was owed about $ 28.9 million, other financiers including Bank of Queensland held mortgages o v e r p r o p e r t y , a n d u n - secured creditors were owed $ 5.8 million. Employee leave entit l ements were about $ 700,000.