Hansen Constructions NQ plunges into liquidation amid $21m debts, criminal investigation launched

A criminal investigation has been launched after the collapse of a Queensland civil construction giant with debts of more than $21m and claims of insolvent trading.

Mainscarf Pty Ltd, which trades as Hansen Constructions NQ has since ceased operations as of March 7, 2024 and fallen into liquidation.

One of north Queensland’s largest civil construction companies may have traded insolvent for nearly two years before collapsing with debts of more than $21 million, administrators claim, and a criminal investigation is now underway.

Mainscarf Pty Ltd, which trades as Hansen Constructions NQ, was plunged into administration in January with financial and tragic circumstances behind its demise, has since ceased operations as of March 7, 2024 and fallen into liquidation owing creditors $17m, with projections it could be as high as $21m.

It’s debts include $1.1m in unpaid superannuation and about $500,000 in other employee entitlements.

According to the administrator’s supplementary report to creditors, the civil works contractor may have been insolvent since June 30, 2022, with the “director failing to prevent the company from incurring further debt from this date.”

Mainscarf Pty Ltd, which trades as Hansen Constructions NQ has since ceased operations as of March 7, 2024 and fallen into liquidation.

“A more detailed analysis conducted by a liquidator may show the insolvency of the company earlier than this date,” the report said.

David Stimpson and Michael Brennan of SV Partners were appointed as voluntary administrators in January.

The director of the company at the time of liquidation was Jacqueline Frances Murr.

The business has been in operation since 2003 and has done contract works for major developers including Lendlease and Stockland, and the state government, with the collapse said to affect more than “260 employees and a very large group of local and small businesses”.

“Those small businesses in turn employ their own staff. Taking millions out of the cash flow of small businesses in this environment is going to have a lasting effect on some businesses,” the administrators said.

Jacqueline Frances Murr of Mainscarf Pty Ltd, which trades as Hansen Constructions NQ.

The report described the operations of Hansen construction as “dysfunctional.”

The administrators said they had identified “numerous potential offences committed by the director which relate to breach of duties”. They also identified “actions that may amount to theft, attempted theft and fraud committed by a number of parties.”

The administrators said they were he is unable to comment about the ongoing investigations into potential shadow director Kobe Miller and Ms Murr but said “we are working with a number of agencies to progress issues we have identified with the conduct of parties associated”.

The matters have been reported to Queensland Police, Australian Securities and Investments Commission and other authorities to investigate.

A QPS spokeswoman confirmed a report had been made and that it was being investigated.

Hansen Constructions' Jacqui Murr turning the first sod on North Shore's The Junction social and commercial hub. Picture: Matt Taylor

The lack of skilled management and the tendency of the director and Mr Miller to reallocate resources away from meeting operational costs and directing them to non-core or even businesses related areas of expenditure contributed to the “financial failure” of the business, the report stated.

By the time of administration appointment, Ms Murr and Mr Miller had reportedly shut-out senior staff from gaining access to financial information, electronic files and information on ongoing projects, the report said.

“The director and operations manager were completely out of their depth and the contracts that the company were working on were beyond their skill set to manage,” Mr Brennan said.

The plant and equipment of the company has since been sold at auction on April 16, with auction transactions to be completed so that security holders can be paid for assets sold.

One of the assets sold was a $78,200 Mercedes-Benz.

In the initial stages of Administration, Hansen construction was allowed to continue trading to complete some of its projects which included, TAFE Pimlico, the Elliot Springs master planned community, the North Shore Development and works at Townsville Golf Club.

Mainscarf Pty Ltd, which trades as Hansen Constructions NQ has since ceased operations as of March 7, 2024 and fallen into liquidation.

However, due to non-payment from contracts, key employee resignations, weather-related project delays and theft of assets, the decision was made to cease trading.

“When the administrators were appointed we held discussions with all clients to outline our plans to complete the contracts for the mutual benefit of all concerned,” Mr Brennan said.

“Unfortunately, despite these discussions and despite significant costs being incurred by the Administrators, a number of clients refused to pay for work done post appointment.

“The Administration could [not] viably continue to work for no payment.”

Mr Brennan said it will fall back on the clients to resolve any issues with the contracts not completed.

And said it will dilute the pool of funds available to pay unsecured creditors.

Attempts were made to contact Ms Murr and Mr Miller, however they were unsuccessful.