Fighting for Subbies Rights
In Queensland a company Future Urban Residential recently liquidated owing creditors, mainly subbies, a conservative 2 million dollars.
Victorian subbies face the same fraud on a regular basis with a big one now where the liquidators have creamed off approx $240,000 in a little over a week with Easter in the middle. This particular liquidator rarely gets any return for creditors in the building industry.
Future Urban creditors wanted a change of liquidator from the one the builder appointed to their own "creditor friendly" liquidator.
Creditors wanted someone who will not take a backward step when it comes to investigating the disgraceful behaviour of the director and the shadow director of Future Urban Residential who used subbies and suppliers right up until the first liquidator was appointed.
What were they thinking?
Why did they think they could get away with this fraudulent behaviour?
The idea was obviously to wring every last cent out of the clients they were building for with last minute claims to top up the coffers and they didn't care at whose expense they did it.
They would have been getting pre insolvency advice for quite some time as they knew they would not survive, yet they continued to use subcontractors. That is reprehensible behaviour and that is part of the reason creditors wanted to change the liquidator.
The Process of Changing a Liquidator
Under the Corporations Act 2001, A "directions by creditors to convene a creditors meeting to consider replacing the current liquidator" was sent to the incumbent liquidator Matthew Bookless from SV Partners. This is not a reflection on Mr Bookless, creditors simply don't want liquidators appointed by the people who have made their money disappear into thin air.
- They want to know where it went
- They want the chance to get some of it back and
- They want the people who did this held to account.
None of that is a big ask but for some liquidators it is not high on the list of priorities, especially if there is no low hanging fruit (easy money) to be found.
SV Partners called a creditors meeting on Friday 6th April where a resolution was moved to replace the liquidator with Melbourne's and now also Brisbane based Menzies Advisories Mr Michael Caspaney. He has now been appointed to 4 Queensland builder liquidations and is making some good progress with his investigations.
The vote to change the liquidator was 15 for, none against with a dollar value of $463,504.
The new liquidator Michael Caspaney has assured SubbiesUnited that he will work hard to investigate what has caused this catastrophic company failure in such a short time.
A representative from Future Urbans pre insolvency advisor De Jonge Read attended the meeting by phone as an observer.
We cannot trust builders with huge amounts of unsecured credit. The banks won't lend money without security, why should subcontractors?
The injustice of this massive risk is what motivates SubbiesUnited to fight it at every opportunity.
The system which allows this to happen has completely failed subcontractors and suppliers.
Last week I sent out an article about Senator Murray Watt speaking in the Australian Parliament in support of the plight of subbies. I also took a swipe at the Prime Minister Malcolm Turnbull for completely ignoring subbies and being the vain, lazy and selfish politician he is. If he had an ounce of self respect he would have resigned yesterday and given the job back to the person he knifed because he set the bar at 30 losing news polls in a row. Turnbull as of yesterday has now lost 30 news polls in a row and will soon break Julia Gillard's Olympic mark of 33. In my opinion they are dumb and dumber but not sure which one has done the most damage to the nation.
I copped some flack for being a left leaning supporter for Labor.
That is not the case, I have always been right to the point where one of my mates (who is a builder believe it or not) jokingly says "you are so far right you are almost Klu Klux Klan".
Thats not correct either, I tell it like it is and if someone is actively doing something for subcontractors they deserve to have it publicised.
The Qld Labor Government has introduced security of payments with Project Bank Accounts and are funding a public examination of the directors and other key people involved with Queensland One Homes and Cullen Group so they deserve that being publicised.
Senator Watt has taken the time to have meetings with Subcontractors Alliance and Subbies and has spoken in Parliament on our behalf so that support should also be publicised.
When someone from the the LNP or the Federal Coalition gets off their arse and does something for subcontractors, they too will get a wrap but I won't be holding my breath waiting.
This liquidator change is another victory for creditors who are so sick of the abuse and theft of their hard earned money, they are fighting back at every opportunity.