Unsecured creditors on units owed $11m

UNSECURED creditors of a failed Townsville development company look like they will recover at least some of the $11m they say they are owed.

But just how much, liquidator Chris Cook says remains unknown.

“At this stage, a dividend to creditors appears likely, but the dividend rate currently remains unknown,” Mr Cook of Worrells says in a report to creditors. “The dividend rate will be dependent on recoveries from successful voidable transaction claims and the sale of the remaining company properties.”

CPR Townsville Holdings Pty Ltd, involved in the development of the Fulton Gardens residential complex on the old Townsville General Hospital site in North Ward, was placed into liquidation on June 25, after recovery actions by two creditors.

Company records list Brisbane-based developer Robert Zammit, who led redevelopment of the 4ha former hospital site, as the sole director of CPR Townsville Holdings, and as a shareholder in the company with Peter Hunt of Adelaide.

Mr Cook says secured debts, including to two banks, amount to $3.4m.

Of a further $11m in unsecured debts, about $10.6m is to related entities and investors who funded development of 55 units in the complex.

A total of 11 units, including one which has already been sold for $460,000, are the company’s major remaining assets.

Mr Cook says they will continue to market them for sale. Of possible recoveries, Mr Cook says they will investigate potential voidable transactions as well as requests by creditors into other issues, including the disbursement of proceeds from the sale of company properties.

He says their preliminary examination indicates the company became insolvent as early as October 31, 2015, the date it advised investors of the possibility that a call would be made to assist with the costs associated with the sale of the remaining company units.

The director’s financial capacity to satisfy a claim will form part of their investigations into insolvent trading, Mr Cook says.

Two of the company’s remaining units are due to be auctioned on October 9.