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.