Fears as peninsula builder goes bust


A MORNINGTON-based construction company has gone into receivership owing 92 creditors almost $465,000 and raising fears it could be the first of more bankruptcies due to a softening in the building industry.

The 92 people and companies listed as being owed money by Nepean Constructions (Australia) were notified of the company’s demise in a letter from liquidator David Vasudevan. It came as a surprise to many, particularly those still working on construction sites on the peninsula.

Michael Knoop, proprietor of Alltrade Scaffolding, which is owed $7784, said he knew of one Nepean Constructions building site where a delivery of timber was accepted after the company had gone into receivership, but before creditors were notified.

“What I’m upset about is these peo­ple were working on site just two days before we got our paper work [announcing the liquidation],” he said.

Mr Knoop said he knew of family homes being built by the compnay that were unfinished.

With economic conditions in the building industry on a general downward trend, there were fears companies and sub-contractors owed money could be badly affected by the closure.

“Money is getting tight at the moment and something like this could have a domino effect,” he said.

Mr Vasudevan of Pitcher Partners was appointed liquidator on 27 Septem­ber after a meeting with Ne­pean directors Peter Friedl and Ste­phen Juffkins on 20 September.

A meeting of creditors will be held on Monday (8 October).

Mr Vasudevan told creditors he would provide a preliminary assess­ment of Nepean Constructions’ finan­cial position and liabilities at the meeting.

A summary of assets provided by Nepean Constructions indicated the company had about $84,000 of realisable assets and about $464,600 in debts at the time of entering liquidation last Thursday.


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