Descon Group Australia director Danny Isaac reported to ASIC after failing to lodge liquidation reports

Debts of collapsed Descon and Adcon building groups are above $200m as administrators reveal a new frustration with the crumbling empire’s director Danny Isaac.

Debts of collapsed Descon and Adcon building groups have climbed above $200m as liquidators express frustration at directorDanny Isaacfailing to furnish records of his crumbling empire.

As the embattled director continues an extended sojourn in Dubai, at least nine of his companies are controlled by administrators, who have filed multiple reports about his alleged conduct to corporate regulator ASIC.

The liquidator’s report forparent company Descon Group Australia said it owed $10.7m

to unsecured creditors and an unknown amount to secured creditors, with $8.2m of the unsecured debt owed to related parties.

Receivers of Descon’s Waverley residential project at Southport have terminated the building contract on the site, telling apartment buyers recommencement of construction was their priority.

Some subbies were removing equipment and supplies, while other kept working, at the site of Waverley Residences in Southport, the day its builder Descon Group Australia went into liquidation.

Eight of the group’s failed companies- which operated in three states and the ACT – owe at least another $190m between them, with some administrators yet to report on their debts.

Liquidator Terry Rose of SV Partners said Mr Isaac had offered funding to explore whether the company would be better off in administration than liquidation – but no money had materialised.

Mr Isaac was also yet to provide the location of the company’s materials, plant and equipment, and books and records.

“Should I not receive same in due course, I will have no option but to report the matter to the Australian Securities and Investments Commission (ASIC) and seek their assistance in compelling Mr Isaac’s to comply with my requests,” the report said.

Descon Group Australia director Danny Isaac.

As well as a lack of co-operation from Mr Isaac, the liquidators said there were inconsistencies between what he had told them verbally and what he’d disclosed in writing.

According to the liquidator’s report, Mr Isaac “verbally indicated the Company owns materials, plant and equipment”.

However, in his report on company affairs and property, Mr Isaac wrote “that the Company only ever hired plant and equipment and did not own any assets of this nature”.

The liquidator said he had seen documents which showed Descon had declared assets of $88.2m in January this year; $76.3m in June last year; and $278.7m in June 2022.

Descon Group Australia holds a Queensland Builder licence for maximum revenue of $240m a year, for which it has had to repeatedly prove it had enough assets to remain financially viable.

Allure on Chevron development, being constructed by Descon on Chevron Island.

The QBCC has repeatedly declined to comment specifically on Descon, despite its troubles being brought to its attention at least 12 months ago.

Descon has retained its licence in the face of scores of debts claims and court cases and revelations Mr Isaac was bankrupt and had changed his name when he applied for the licence. He has since been discharged from the bankruptcy but is facing new bankruptcy action.

The licence was still active this week.

The parent company’s three bank accounts had just $14,000 between them when it was wound up by the Supreme Court last month, liquidators found.

The report said Descon Group Australia owed $5.2m to 35 Merivale, the collapsed developer of South Brisbane’s Akin Residences.

The liquidator’s report named 35 court actions the company was party to, saying they would have to check the status of each.

Some subbies were removing equipment and supplies, while other kept working, at the site of Waverley Residences in Southport, the day its builder Descon Group Australia went into liquidation.

In his report, Mr Rose said SV Partners had been engaged as administrators of other Descon companies, including Adcon Vic, Adcon Logistics and Adcon ACT and that SV Partners had been receivers and managers for six other related companies.

Four SVP liquidators had been in discussions with Descon Group’s lawyer and director about the company’s prospects throughout 2023 and into 2024, the report said.

Originally published as Descon Group Australia director Danny Isaac reported to ASIC after failing to lodge liquidation reports