Melbourne-based builder Kenik forced into liquidation, trades owed over $6m for projects nationwide
The fallout from the collapse of a national builder has escalated, with debts of more than $6m revealed for projects across Victoria, New South Wales and Queensland. See the list of creditors.
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The fallout from the collapse of a major builder has snowballed with hundreds of creditors owed over $6m from various projects across Victoria, New South Wales and Queensland.
Melbourne-based construction company Kenik was wound up in Queensland’s Supreme Court earlier this year after Brisbane interior fit-out and joinery manufacturer Barrett Group launched legal action.
Kenik, which is headquartered in Malvern in Melbourne’s southeast, has been in the property and construction industry for over 25 years, with a focus on high-end residential, commercial and retail projects, the company’s LinkedIn states.
“Kenik applies a holistic approach to property development and construction on a national basis,” their bio reads.
“Combining a development project management consulting service with an in-house construction company, Kenik provides a complete end-to-end service from the design stage right through to delivery.”
Kenik attempted to delay the Barrett Group’s winding up application – a legal tool used by creditors of a company to enforce the payment of a debt – pending the result of a payment dispute with another company, Taringa Property Group.
Kenik argued that if it won or settled that case, it would receive enough money to pay off its debts.
The legal battle between Taringa Property Group and Kenik erupted over a project for a Coles-anchored shopping complex in the Brisbane suburb of Taringa.
Construction took significantly longer than expected, causing Kenik’s costs to balloon to nearly $10m – well above the original contract price.
Taringa Property Group rejected the claimed construction costs but was later ordered to hand over $4.2m after Kenik took the company to court.
The property group has since challenged the court decision and started new legal proceedings to stop Kenik from obtaining the money.
They also lodged a separate $11m claim against Kenik for alleged breaches of contract, court documents reveal.
The shopping centre build was eventually taken over by Hutchinson Builders.
The court ultimately rejected Kenik’s request for a delay and insolvency experts from Hall Chadwick Roberto Crispino and Richard Albarran were appointed liquidators.
Over 200 creditors are owed a total of $6.6m, a new report provided by director Stephen Kennedy, lodged with the Australian Securities and Investments Commission, reveals.
The document reveals a long list of trade creditors for projects in Melbourne suburb Sunshine ($807,020), New South Wales suburbs Bringelly ($348,196) and Yallah ($1.4m), and Queensland suburbs Chuwar ($891,083) and Taringa ($2.2m).
Court documents reveal the company has not traded since August 2023 when its building licence was suspended.
Creditors of the Sunshine project include Pulseweld Engineering Services ($110,000), Express Interiors ($69,536), RAM Locksmiths ($58,403) and Scope Cleaning and Maintenance Services ($60,391).
Trades on the Bringelly and Yallah projects include First Choice Earthworks ($90,402), Gasweld Industries ($75,795), Rockpave Civil ($59,243), AAA Fast Plastering ($92,062), Austral Precast ($650,000) and City Coast Services ($160,362).
Queensland trades on the Chuwar and Taringa projects owed money are Manly Concrete ($135,284), Pentacon ($300,000), ACP Advance Commercial Projects ($90,028), HKH Roofing ($43,693), Hyforce Engineering ($102,999), Illumin8 Electrical and Communications ($148,440) and JKA Commercial Glazing ($78,079).
The company went into liquidation with just $110 in one bank account, and $218 in another.
Other assets owned by the company listed by Mr Kennedy include two lump sums held in the Supreme Court of Queensland to the value of $4.8m and $1.5m.
Money listed as being owed to the company include from Victoria’s Rasmussen Property Group for development management fees ($290,293), Coles for construction variations on a Taringa project ($317,703), Kenhart Developments ($471,047), Medcom ($316,868), as well as from Taringa Property Group regarding funds held in court.
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Originally published as Melbourne-based builder Kenik forced into liquidation, trades owed over $6m for projects nationwide
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