Promise to pay subbies
Developer to carry can for son’s project
EMBATTLED developer Larry Matthews has vowed to pay back Gold Coast subbies owed more than $6.8 million on a project developed by his son’s company.
Breaking his silence after the collapse of Bluestone Constructions Pty Ltd, Mr Matthews said: “It is my intention to pay creditors. This will come from the sale and settlement of assets within the Matthews Property Group”.
Bluestone’s Waterford North and South project involved 255 units in a fourstage development with 68 units built and completed in the first stage and the remaining 187 units later.
“Unfortunately various issues caused delays to construction and with the necessity to complete stages two, three and four in a single stage, costs escalated,” Mr Matthews said.
“The main focus of all concerned was the necessity to complete the project which, despite the escalation in costs, occurred in November 2016.”
The project was finished with “the help of the financier” and “increased equity contributions by the developer”.
The Bulletin revealed the developer, who previously faced insolvency issues, was a “permanently excluded individual” by the Queensland construction industry watchdog after filing for bankruptcy in 2012. Emails show Mr Matthews’ company, Matthews Property Group, made the call on which subbies got paid after senior managers said he “personally contributed funds” to help a financially troubled Bundall project developed by his son’s Bluestone Constructions Pty Ltd.
“Of the 255 units built and completed, 37 remain to be settled with a number of units contracted and set aside to satisfy outstanding creditors,” Mr Matthews said.
“In the interests of the outstanding creditors and remaining purchasers, it is absolutely imperative that they understand the project has been finished – unlike some other projects where the project was abandoned incomplete.”
Housing Minister Mick de Brenni will consider further reforms relating to ex-bankrupt developers.
LARRY MATTHEWS