Ri-Con Contractors Pty Ltd director John Jenkins headed the failed Sunshine Coast company that has left hundreds of unpaid invoices across Western Australia, the Northern Territory and Queensland.
Ri-Con Contractors Pty Ltd director John Jenkins headed the failed Sunshine Coast company that has left hundreds of unpaid invoices across Western Australia, the Northern Territory and Queensland.

Failed builder's $4.7m nationwide trail of debt

THE list of people owed money by failed Sunshine Coast builder Ri-Con Contractors Pty Ltd, made for unpleasant reading for subcontractors and suppliers across Australia.

A report by liquidator Worrells to creditors revealed the company's failure has been felt from Western Australia to the Northern Territory and down through Queensland.

When it went into liquidation on January 13, Ri-Con held no cash at bank and, according to director's assessment, had assets of $3,123,931 against liabilities of $4,735,121.

Unsecured creditors could take little comfort in that.

>> BUILDER GOES INTO LIQUIDATION, LEAVING SUBBIES UNPAID

>> BUILDER COLLAPSE LEAVES SHOCKING LEVEL OF UNPAID CREDITORS

Owed amounts from a few hundred dollars to nearly a quarter of a million dollars in the case of Brisbane Electrical Contractors and Engineers which, along with retentions, total $3.601 million, they stand behind secured creditors owed $968,000, the Australian Tax Office ($127,870) and employees.

The disposal of plant and equipment including motor vehicles listed as assets valued at $700,000 may also realise a fraction of that amount and the recoverability was still to be tested of loans totalling $1,453,931 to associated entities.

Worrells has flagged creditors that its own fees for the liquidation would be in the order of $85,000, of which $19,436.05 has already been expended.

Cheryl Harper, of Enzign Painting, said her small business had been hit for $4500.

"They nagged us before Christmas to do rectifications and extra work and knew we wouldn't get paid," she said.

"I'm just livid. There goes all our retentions again. There's no protection. There's people falling over all the time on the Sunshine Coast."

>> $5.2M COUNCIL PROJECT IN LIMBO AFTER BUILDER COLLAPSE

Ms Harper said she had received no correspondence from the liquidator or the company and had even gone to its offices, only to find them closed.

Enzign Painters worked on the Caloundra Tennis Centre, a job Ms Harper said had been completed before Christmas.

She said it had been a government-funded project that it appeared would now be paid for by ratepayer small businesses.

Liquidator Paul Nogueira has outlined his initial role as identifying and securing the company's assets in Queensland, the Northern Territory and Western Australia.

He will also seek to collect monies owed to the company for relevant projects and by other parties.

Mr Nogueira, in a statement to the Australian Securities and Investments Commission, said he would start preliminary investigations to determine among other things whether any offences had been committed by the directors.


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