Descon Group Australia in liquidation after being wound up by court

A national construction company with projects along the east coast – and hundreds of millions in debt – is finally in liquidation. READ WHAT HAPPENED:

A national construction company with projects along the east coast – and hundreds of millions of dollars in debt – is finally in liquidation after more than a year of financial strife and dramatic court battles.

A two-day trial seeking the wind-up of Descon Group Australia was wrapped up in minutes in the Supreme Court of Brisbane on Wednesday morning, with Justice Frances Williams ordering it be placed into liquidation.

Terry Rose of SV Partners has been appointed liquidator.

Lawyers for Descon had contacted creditors late on Tuesday night seeking the court matter be pushed back by 90 minutes in anticipation of the company calling in administrators.

Descon director Danny Isaac, a former bankrupt who is also known as Sami Adib, had begun the process to place the company into voluntary administration before it could be wound up by the court.

The Gold Coast Bulletin has contacted Mr Isaac, who is also defending bankruptcy action, for comment.

Descon Group was behind projects including the stalled Akin Residences in South Brisbane and Waverly at Southport.

Among the creditors was developer and former Descon employee Anthony Quinn, who has been locked in more than a year of court battles with the company and its director.

Mr Quinn said he was “elated and vindicated” at the court result.

“I feel like I have done my public service,” he said.

“I have ensured future bleeding from the losses of Descon has been arrested.

“I have great confidence in the liquidator appointed, and that he will conduct extensive investigations into the company.”

Descon has worked on major train station projects in Melbourne.

The amount owed by Descon Group Australia itself - parent of more than a dozen companies - is unknown, but the debts of the wider group are expected to top $200m, with just one of the companies, Descon Qld, owing more than $136m.

Documents lodged in the wind-up case revealed Descon Group Australia was evicted from its Brisbane office over unpaid rent.

The company hurriedly left its head office in Sydney under the same circumstances in May last year – although both addresses were still being used in company records held by ASIC this week.

Mr Isaac’s personal address is also listed with ASIC as the Sydney former head office, however he left Australia in October and is understood to have been living in Dubai and Saudi Arabia.

Descon Qld – which is behind the stalled Waverley residences tower in Southport went into administration on April 17.

15 Waverley St development in Southport nearing completion. Picture Glenn Hampson

Two other companies solely directed by Mr Isaac – Adcon Admin and Chale – also went into administration on April 17, shortly before they were due in court for windup action.

Courts in Queensland and Victoria ordered each into liquidation within 24 hours.

Descon Qld administrator Chris Baskerville of Jirsch Sutherland said creditors had submitted proofs of debt worth more than $136m, including $130m from business lender Busifund.

Descon Qld also owes more than $5m to the ATO, including $3m in staff superannuation.

Subcontractors and suppliers are owed more than $1m.

Adcon Admin was facing wind-up by WorkCover Queensland and the Deputy Commissioner of Taxation.

The Gold Coast Bulletin has contacted liquidator Paul Langdon for comment.

Descon Group Australia director Danny Isaac.

Adcon Management, which provided labour hire to other businesses in his besieged Adcon and Descon groups, is also in liquidation, owing more than $25m.

The liquidator’s report said it had “likely” been insolvent for “at least” five years.

Mr Isaac was banned by the QBCC in February from holding a Queensland builder licence, or from running a licensed company, until December 8, 2026.

He has previously said he would appeal the decision.

Despite the widely-publicised significant financial trouble, a number of his other companies being in liquidation; and revelations Mr Isaac was an undischarged bankrupt when he applied for his builder licences, the QBCC has allowed Descon Group Australia to remained licensed for maximum revenue of more than $240m a year.

A statement from the QBCC said companies had 28 days from when liquidators were appointed to argue their case to keep a licence.

“The licence remains active and visible on the QBCC website during the 28-day period,’ it said.

“The risk to affected stakeholders is minimised once an administrator or liquidator has been appointed, as they take personal liability for the company licence and any debts incurred after their appointment.”

KNOW MORE? EMAIL:

Originally published as Descon Group Australia in liquidation after being wound up by court