Stokes Wheeler suppliers slap caveats on properties owned by directors and their wives

Creditors of a veteran construction firm, which collapsed in April owing almost $19m, have targeted properties owned by its directors as a liquidator reveals the company had lost more than $2.7m in subcontractor retention money.

Stokes Wheeler creditors have placed caveats on some properties owned by the directors.

Creditors of a veteran construction firm, which collapsed in April owing almost $19m, have slapped caveats on properties owned by its directors as a liquidator reveals the company had lost more than $2.7m in subcontractor retention money.

Stokes Wheeler, which has offices in Yeronga and Southport, went into voluntary administration on February 3, with Roland Robson and Bill Cotter appointed.

The company had been operating since 1997.

Just over $18.2m is owed to unsecured creditors, including $959,000 claimed by related parties and $7325 by the ATO.

Another $1.6m is owed to former employees of the company, while $3.17m to secured creditors, mostly to Westpac.

Properties owned by the company itself has already been sold, with the proceeds taken by Westpac.

An apartment at Brisbane's Tenerife is the subject of multiple caveats from creditors of Stokes Wheeler.

An apartment at Brisbane's Tenerife is the subject of multiple caveats from creditors of Stokes Wheeler.

Land title records reveal creditors have slapped caveats on personal properties owned by Stokes Wheeler’s directors, Damien Stokes and John Wheeler, and their spouses.

Land title records show Westpac holds a mortgage over an investment apartment owned jointly by Mr Stokes and his wife Belinda at Brisbane’s Tenerife, which is valued around $1.5m.

Hymix, Boral Resources (Qld), and Heidelberg Materials Australia each filed caveats over Mr Stokes’ share of the property on February 7, four days after the company went into administration.

Neumann Steel lodged a caveat on the apartment in May, after the liquidation.

The same suppliers also hold caveats on the Stokes’ family home, at Warner in Brisbane, which the couple bought for $155,000 in 2001 and is also currently valued around $1.5m.

Title records show a new mortgage with Perpetual Corporate Trust was taken out over the

house in November last year.

Damien Stokes.

John Wheeler.

Both directors and their spouses also jointly own a commercial property at Southport on the Gold Coast, which had previously been advertised for rent at $576,000 a year and has been leased to Orbitz Elevators. Hymix and Heidelberg lodged caveats on that too.

Meanwhile, a vast riverfront home in Ashmore’s exclusive Kootingal St escaped the flurry of caveats just in the nick of time.

Property records show a five-bedroom, four-bathroom home with pool and tennis court, owned by Mr Wheeler’s wife under the name Therese Blair, was sold for $5m on February 5 without being advertised – two days after the company went into administration and four days before the caveats on the Stokes properties.

The Ashmore home was relisted at $5m by its new owner less than a month later.

The directors have repeatedly declined to comment on the collapse of their company and could not be contacted this week.

The former property of Elaine Wheeler at Kootingal St, Ashmore.

In his latest report to creditors, liquidator William Robson of Robson Cotter said the company’s retention account, which was supposed to be holding almost $3.4m in money owed to subcontractors, held just $667,000 when liquidators got to it – a shortfall of $2.7m.

The remaining funds have been frozen by the QBCC, which is legally not able to release any money until the full amount is returned.

According to the liquidator’s report, there are no funds available to make that happen, so the retention funds will remain frozen indefinitely.

“There is no ability under the legislation to make part payments or pro-rata payments to beneficiaries, only full payments to what they are entitled,” the report said.

“At this stage of the liquidation the shortfall is unable to be reimbursed.”

Mr Robson’s report said the company had likely traded while insolvent but did not put a date on when the potential insolvent trading had started. Nor did the report identify who may have been responsible for the questionable trading.

The collapse halted work on four projects under construction, including a 40-apartment project Elevaire at Palm Beach by developer Evoke Property, which has lodged a debt claim of $6.49m with the administrators for “termination and rectification costs”.

Other projects under way included the Bounce Hostel at Pine Ave, Surfers Paradise; a medical centre at Dixon Circuit, Pimpama; and an aged care facility at Calam Road, Sunnybank.