Distressed Assets Media Centre
10 February 2010
25 firms follow builder into liquidation
Source: Yahoo!7 Finance News
The liquidator for the collapsed north Queensland construction company CMC Cairns says 25 associated companies have also gone into liquidation.
CMC Cairns went into voluntary administration in May and was placed in liquidation owing unsecured creditors more than $17 million and financiers nearly $100 million.
Liquidators SV Partners is investigating a range of issues, including the relationships between the companies and whether CMC Cairns traded while insolvent.
The director of SV Partners, David Stimpson, says it is likely all but one of the secured creditors will be paid out, but it is unlikely unsecured creditors will see any returns.
"The sooner the projects are complete and the units sold, the sooner we can then ensure that they secure creditors are paid, that's the banks, and trace the flow of funds through the group to the various creditors to each company in the group," Mr Stimpson said.
He says it is possible more companies in the group will go into liquidation. "Roughly speaking, there's probably another 10 to 12 companies in the group, which may well go into liquidation in the coming months," Mr Stimpson said.
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