Felmeri collapse leaves The Bend in race to finish drag racing track ahead of first major event, chasing $1m in debt

The Bend’s owners are in a race against time to finish a new $35m dragstrip after the collapse of SA builders Felmeri Group, which was working on the project.

The Dragway at The Bend currently under construction. Picture: Facebook

Construction of a $35m dragstrip at The Bend motorsport park is facing delays due to the collapse of building company Felmeri Group, but owner Sam Shahin has assured fans it will be ready for its first major event in October.

It’s been revealed the construction arm of the Shahin family’s Peregrine Corporation is chasing a near $1m debt owed by Felmeri, relating to incomplete construction work at the Tailem Bend site.

Dr Shahin said Felmeri had been engaged to deliver all buildings to support the Dragway at The Bend facility, including the main race control building, bar, cafe and ablution blocks.

But after the building firm fell into administration in May, new contractors had to be brought in to complete the project ahead of the opening round of the National Drag Racing Championship on October 21-22.

“While the situation has caused us significant duress, my team and I are working with new contractors to ensure that the facility is ready for our first major event in October,” he said.

“We will continue to work with the administrator on the best way forward for our business, and for the Felmeri business.”

Dr Sam Shahin in his garage at The Bend motorsport park. Picture: Matt Turner.

Peregrine’s construction arm, PC Infrastructure, claims it’s owed $961,000 by Felmeri, regarding construction work it had paid for but not yet received at the time of the company’s collapse.

In May last year Dr Shahin said the drag racing strip was six months away from being completed.

The track, which secured $2m in funding from the previous Liberal state government, will accommodate up to 10,000 spectators once completed.

Following October’s launch event, it will host two more rounds of the National Drag Racing Championship, in January and April next year.

The Dragway at The Bend is under construction. Picture: Facebook

The directors of Felmeri Group are working on a last-ditch rescue plan to save the company from falling into the hands of liquidators, claiming to have the support of a “large national building company” that would complete most of the unfinished homes.

They have until July 10 to submit their deed of company arrangement proposal to administrators, who will then review the terms of the repayment plan before issuing a recommendation to creditors ahead of a meeting on July 17.

Dr Shahin said he had not yet seen the details of the proposal.

“Felmeri has historically delivered on works promised so in principle, and subject to reviewing any proposed arrangement, my gut feel is to provide them with every opportunity to rescue their business,” he said.

Originally published as Felmeri collapse leaves The Bend in race to finish drag racing track ahead of first major event, chasing $1m in debt