Creditors emerge after major building firm collapse
A CLEARER picture has emerged of the fallout from a major Coast building group's collapse, with unsecured creditors claiming total debts of about $31 million.
Initial investigations by liquidators had indicated there wouldn't be sufficient recoveries to secure a return for unsecured creditors of RGD Group Pty Ltd and RGD Constructions Pty Ltd.
The two Coast-based companies directed by Ron Grabbe were placed into voluntary administration last month, before liquidators were formally appointed on June 12.
A recent report to creditors found about $13.5 million - $14.5 million had been lost by RGD Constructions due to a range of issues on the Virtuoso project, a premium, riverfront apartment development by Stockwell in Brisbane's West End.
FTI Consulting investigators also found "comprehensive losses" of about $10 million and $9.3 million had been recorded by RGD Constructions in the 2019 and 2020 financial years.
A list of unsecured creditors of both companies obtained by the Daily showed the scales of debts being claimed by a mix of trade suppliers, banking firms, the taxation office and others.
The Deputy Commissioner of Taxation had claimed debts of more than $138,000 against RGD Constructions and more than $388,000 against RGD Group.
Other notable claims against RGD Group included more than $513,000 owed to Bimcrest Pty Ltd, more than $287,000 owed to Peter Saunders and more than $112,000 to Regency Fabrication.
Some of the more significant claims against RGD Constructions included more than $128,000 by Marc Air Conditioning Services, more than $115,000 by QE Doors and Frames Pty Ltd and more than $109,000 by Six Star Tiling Pty Ltd.
Both companies had several other claims in the tens of thousands of dollars recorded.
Among the unsecured creditors was Native Coatings Pty Ltd, which had claimed a total of more than $150,000 owed by both companies.
Native Coatings owner Dorian Smerdon had also written to Fisher MP Andrew Wallace, a former building industry barrister, about his predicament.
In a bitter blow, Mr Smerdon claimed another builder had also gone bust in recent weeks, leaving him about $250,000 out of pocket in total.
Mr Wallace said his advice was to seek independent legal advice, and he tried to assist where he could.
"As an ex-builder and ex-construction law barrister I get many phone calls from subcontractors and builders chasing money," Mr Wallace said.
RGD Group shareholder Greg Clark was also listed as an unsecured creditor with debts owed of almost $28 million against both companies, having provided significant financial support prior to the collapse of the two companies.
Clark Group had since taken over a number of RGD projects, including Southbank at Birtinya Island and Seanna Residences at Bokarina Beach.