Glen­wood’s sup­pli­ers and sub­con­trac­tors to take a hit

Townsville Bulletin - - Investor -

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.

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