Miles Electrical has gone into liquidation owing $2.3 million to creditors

A leading Queensland electrical company, which worked as a contractor for a $60 million munitions plant, has collapsed, owing millions to creditors.

An electrical company, which has worked on some of the Fraser Coast’s biggest construction projects, has gone into liquidation.

An electrical company, which has worked on some of the Fraser Coast’s biggest construction projects, has gone into liquidation owing more than $2.3 million to creditors.

Miles Electrical entered creditors voluntary liquidation last week following a disputed $2m owed to them in relation to the $60 million Rheinmetall NIOA Munitions plant build which was completed at Maryborough’s Moonaboola Industrial Estate in July.

Liquidator Paul Nogueira, of Worrells Solvency and Forensic Accountants, said the company ceased trading mid-September after a dispute surrounding the major project which involved parties that were yet to be determined.

“The company records indicate they (Miles Electrical) are owed in the order of $2 million, which is highly disputed by the parties.” Mr Nogueira said.

The longstanding Hervey Bay company, directed by Wayne and Rebecca Miles, owes $2.3 million to numerous unsecured creditors.

This includes significant amounts to individual companies, Mr Nogueira said, as well as $35,000 in employee entitlements and $424,000 to secured creditors.

Miles Electrical was contracted in the construction of the munitions plant; a factory that will produce shell casings for the Australian Defence Force from early next year.

The project, a major boon for the Fraser Coast, was backed by $28.5m of Federal and $7.5 million of State government funding and the build led by Australian company BADGE Constructions.
On the factory’s opening, Deputy Prime Minister Barnaby Joyce said a number of immediate and long-term jobs had been created in the region, with Wide Bay and Southeast Queensland contractors winning 98 per cent of the project’s contracts.

Miles Electrical, established in 2003, had an extensive and almost two-decade long domestic, commercial and industrial project resume including work on the Hervey Bay High School Sports Hall and University of Queensland Library extensions.

It also worked on the build of what was then Peppers Pier Resort – now Oaks on the Esplanade at Urangan.

Mr Nogueira said the first crucial steps in the company’s liquidation process were to assess the money owed and establish the company’s assets to be collected and sold off by a valuer.

He said it was too early to tell if creditors would receive money owed as it would be dependent on money received from the Maryborough munitions plant project.

Mr Nogueira said it was not an uncommon reason if companies linked to construction collapsed when they were working on a large project where disputes arose that led to insolvency.

When asked about the contractor’s collapse a Rheinmetall NIOA spokesman said “while it is disappointing to see any local business go into liquidation, Rheinmetall NIOA Munitions’ contractual arrangement for the building was with Badge constructions who in turn were responsible for delivering the project on time”.

“RNM has honoured all its contractual commitments in relation to the construction of the Maryborough facility.’’