Subbies United calls for sacking of Privium administrator

A major subbies lobby group is calling for the removal of the administrators appointed to failed building giant Privium because of a possible conflict of interest.

A major subbie group is calling for the removal of the administrators appointed to failed building giant Privium because of a possible conflict of interest.

Privium director Rob Harder called in FTI Consulting on Wednesday after the Logan-based building giant left hundreds of homes unfinished across the country and debts of at least $28m. Subbies United’s John Goddard claims there is perception that a director-appointed administrator is not likely to do as thorough an investigation as one appointed by creditors. “The main concerns of the company’s creditors is how much information passed between the director and the current administrators prior to the actual date of their appointment,” Goddard says. He says the perception of conflict becomes a concern to creditors when discussions with the director took place over several days or weeks.

“This is where creditors are conscious that there could be doubts due to the sheer amount of company information that could be provided by the director to the proposed administrator prior to their appointment.” Goddard says there is a need to follow the real money trail and to ensure transparency not just the secured creditors such as the banks, but all creditors.

He says the real issue for creditors is whether or not they want an alternative administrator who had no contact with the director, their external solicitors or accountants prior to any appointment.

FTI says the firm has no conflict of interest and will pursue an independent inquiry into the circumstances of the company’s collapse.

The firm had three meetings with Privium’s Harder between November 8 and 16 to discuss the company’s financial position and options under an administration. But FTI says those meeting will not effect its ability to fully comply with its legal obligations in an objective and impartial manner. The first meeting of creditors will held on November 29.

Administrators have taken over Privium Homes.

MAXINE’S NEW CHAPTER

It’s been a long journey for Vita boss Maxine Horne who arrived in Brisbane as an English tourist in the early 1990s and built a successful telecommunications giant with her then husband David. Horne (illustrated), who recalls spending her first afternoon in Brisbane at the Spring Hill Baths, has announced she is stepping down as chief executive of Vita but will continue to sit as a non-executive director. Vita has gone through a transformation of late, exiting the Telstra Shop business and building a chain of cosmetic and wellness clinics under the Artisan brand. Known as one of the most savvy businesswomen in Australia, Horne still holds almost 30m shares in Vita, worth around $14m. Telstra will pay Vita $110m to bring its branded outlets in-house, effectively taking over the core of the business that started life in the 1990s as Fone Zone. Horne will be replaced in the chief executive role by long-term chief operating officer Pete Connors. Horne has been the architect of Vita’s decision to move into the multi-billion dollar wellness sector and will be a brand ambassador for Artisan. “This is the beginning of another exciting venture for Vita, a journey that is reminiscent of Fone Zone’s,” says Horne. “The skin health and wellness category has the same characteristics that the mobile phone industry had 25 years ago.”

Vita Group founder Maxine Horne

DEVINE BET

One of Australia’s leading real estate finance companies MaxCap Group reckons the Gold coast apartment market remains a safe bet.

MaxCap provided the first mortgage land facility of $33.75m to DD Living — David Devine’s new venture — for the acquisition of the 38-level Royale Gold Coast site on Northcliffe Tce facing the beach in Surfers Paradise. MaxCap state director Michael Nitschke says they are “very confident” in the performance of the luxury owner-occupier market on the Gold Coast. With the project offering luxury apartments selling on average at around $3m you would want to be confident.

David Devine