Industry — Construction

Blackgum Construction

Commercial Construction Company

Please note, names have been changed to maintain client confidentiality

The challenge

A construction company based in the ACT with approximately 75 employees had run up large debts to subcontractors and the tax office. Given the downturn in the ACT property market, the company was unable to trade its way out of debt.

The response 

We were appointed Voluntary Administrator to the company. The Company progressed to a Deed of Company Arrangement (DOCA), allowing the Company to continue to trade with the view of producing a better outcome for all relevant parties. We implemented a number of cost-reducing strategies during the Administration period.

The result

The Company went through the DOCA process,  resulting in control being returned back to the director. No employees were terminated and the company has been able to meet all its obligations under the DOCA. We anticipate employee claims will be paid out in full and unsecured creditors will receive a substantial dividend.