A Melbourne based building company owned by an Indian-origin builder has gone into voluntary liquidation citing financial crisis.
On March 20th a liquidator was appointed for S J Builders, which operates from the northern Melbourne suburb of Bundoora.
“Notice is given that at a general meeting of the members of the company held on 20 March 2019, it was resolved that the Company be wound up and that Edward Muscat be appointed liquidator”, a notice by the Australian Investment and Security Commission (ASIC) says.
The liquidator, John Edward Muscat from Mayfields Business Advisors & Corporate Paramedics, told SBS Malayalam that the Director Santi Philip has approached him citing that the company’s financial status is in trouble.
He said that the director advised that “the company was without funds to complete its residential builds. The director advised that the company doesn’t have the financial capacity to continue to trade.”
The reasons for the financial struggle will be part of the investigation, he said.
“At this stage it is not clear where the funds were, or why the company didn’t have sufficient funds.”
134 creditors; $1.5 million debt
Soon after appointing the liquidator a receiver and manager was also appointed, and the receiver will be responsible for realising any assets that the company has.
Mr Muscat told SBS Malayalam that there are 134 creditors to the company, including secured and unsecured creditors. The total debt SJ Builders owe to these creditors amounts to nearly $1.5 million.
“The company has 11 buildings that are on the go at various stages of completion” he said.
As many of them are nearing completion, Mr Muscat said he has advised the home owners to approach the Victorian Managed Insurance Authority (VMIA) for further advice.
A creditor, who does not want to be named, told SBS Malayalam that the company owed him $70,000 in terms of compensation.
(AAP Image/Joel Carrett) NO ARCHIVING Source: AAP
“S J Builders has completed my house, but it has structural defects and contractual violations. So the Queensland Civil Administrative Tribunal has ordered the company to pay me compensation.
“I am advised to contact the insurer, but not sure if and when I can get that money”.
The liquidator says that as of now no assets could be found or realised.
He has written to all creditors advising them of the situation and further steps.
Mr Muscat said he anticipates completing the investigation within the next six weeks and report to the creditors.
“As the liquidator I will also report to ASIC advising them of the offences that have been identified, if any, and will write to the Tax Office also,” he said.
