Sommer & Staff Constructions looks at restructure

SUBBIES hit by the collapse of local building firm Sommer & Staff Constructions are expected to hear if they’ll receive any of the $5 million estimated owing to them. It comes as the administrator hints the company may trade again.

SUBBIES hit by the collapse of local building firm Sommer & Staff Constructions are expected to meet next week to hear whether they will receive any of the estimated $5 million owing to them.

Trent Hancock of Sydney-based PKF Chartered Accountants was appointed as administrator to the 44-year-old firm on Friday after the Queensland Building and Construction Commission suspended its licence because of concerns it would not be able to pay its subcontractors.

The suspension left the 106-unit Citro Apartments in West End being developed by Melbourne-based Equire partially completed. Subcontractors are owed approximately $2.7 million on that site.

PKF said yesterday that Sommer & Staff had “made the difficult but prudent decision” to initiate the administration and look at a possible restructure.

Work has ceased on Sommer & Staff’s Citro apartments at West End.

It said this would allow the administrator to have the viability of the business and its remaining contracts assessed.

That could lead to a proposal to subcontractors and creditors that may allow the company to continue to trade in the future.

“In the short term, work on the various building sites is suspended as an analysis of each contract is undertaken and negotiations are held with the various stakeholders to reach an agreement on a way forward on those contracts where possible,” it said.

The first creditors’ meeting would probably be held next week.

Sommer & Staff Constructions director Dan Burley said the administration was a step that the company did not want to take but given the circumstances it was sensible one.

“Over our 44-year history in Queensland, we have always held our employees, our subcontractors and our suppliers in the highest regard and tried always to act with complete integrity with all of them,” said Mr Burley. “We are committed to doing so through the voluntary administration process.”