Creditors of a recently collapsed building company have been warned they’re unlikely to recover their money.
Gold Coast construction company Stokes Wheeler owed staff up to $1.66million and unsecured creditors more than $13.5million when it entered administration in February.
The veteran builders also owed $3.2million to secured creditors, including Westpac.
The $20million debt means unsecured creditors are unlikely to see their money back after Stokes Wheeler entered liquidation this week, the Courier Mail reported.
The collapse has also left several major building projects in limbo.
Administrators Roland Robson and Bill Cotter from Robson Cotter, previously uncovered six project trust accounts which all had no funds.
A retention account created to help repay Stokes Wheeler’s debts, had a shortfall of $2.7million.
The account has since been frozen by the Queensland Building and Construction Commission.
Gold Coast construction company Stokes Wheeler reportedly owed almost $20million when it went into administration (stock image of builders)
Stokes Wheeler’s voluntary administration saw construction of four major projects halted. Pictured is an unfinished project by the company
Stokes Wheeler claimed the company is owed more than $5.3million in retentions from developers, some of which have refused to pay due to rectification and termination concerns.
Less than 10 per cent of that amount has been deemed ‘realisable’ by administrators.
Stokes Wheeler directors, Damien Stokes and John Wheeler, had earlier drafted a deed of company arrangement in a last-ditch attempt to avoid liquidation.
However, creditors on Monday voted for the company’s dissolution.
Administrators in March revealed the company had faced financial pressure for five years after taking on multiple loss-making projects.
‘Preliminary investigations indicate that it is suspected that the company did trade while it was insolvent,’ the report read.
No action was taken against the company or any individuals associated with it.
Stokes Wheeler’s voluntary administration saw construction of four major projects brought to an abrupt halt, including a 40-apartment building at Palm Beach called Elevaire.
Gold Coast construction company Stokes Wheeler went into liquidation this week. Pictured is a completed project
Others included the Bounce Hostel in Surfers Paradise, a medical centre in Pimpama and an aged care facility in Sunnybank.
Contracts for all four were subsequently cancelled.
Developers of those projects are now on the hunt for new builders.
Administrators found Westpac had secured debt of $2.97million, but also had overdraft and bank guarantee facilities worth another $2.02million.
That debt was secured by properties owned by Stokes Wheeler and its directors.
Robson Cotter have also discovered a loader, forklift and multiple passenger vehicles owned by the company, which had not been disclosed.
Robson Cotter has been contacted for comment.
