Revealed: LDC’s list of 153 creditors and what they are owed

There are fears that a new wave of builder collapses is on the way as homeowners and subbies count the cost of Brisbane firm LDC’s failure. REVEALED: LIST OF 153 CREDITORS

• Builder collapses owing $7m, 50 homes incomplete

Homeowners and subcontractors are counting the cost of the collapse of Brisbane home builder LDC and there are expectations of a wave of company failures on the way.

LDC Pty Ltd, which was based in Holland Park in Brisbane’s south, appointed liquidator Bill Karageozis, of Mcleods Accounting, on Friday and initial investigations show the company owes 153 subbies, contractors and other creditors about $7.03m. There are 48 building sites affected across South East Queensland.

The building regulator QBCC cancelled its licence on Monday.

Subbies United spokesman John Goddard said they were bracing for more building company failures this year – potentially overtaking last year – as slowing demand impacts on cashflow.

“I think it will be last year all over again, maybe worse,” he said.

“They’re running out of Peters to pay Paul. The cashflow is not there. There has to be something done about this. It’s just getting out of hand and the subbies are left carrying the bag.”

Messages left at LDC’s head office were not returned.

One of LDC’s partly finished homes in Brisbane.

An LDC review posted two months ago warned that would-be clients needed “to be careful with this company”.

Another posted seven months ago said: “I wouldn’t recommend using these guys. Our journey with these guys was a nightmare. Please don’t fall in the same trap. They will ask for more money in the building stage even if you have a fixed price contract.”

While homeowners face an anxious wait many subcontractors have resigned themselves to the fact that they won’t see their money.

A Facebook post from a subcontractor said: “Finished this big two-storey before Christmas inside and most of outside sadly to find out today the LDC Homes building company has gone bust and no pay for me. But being a strong family built company Matthews Painting will survive this and I appreciate all the locals and their support.”

Documents lodged with the Australian Securities and Investments Commission shows LDC currently owes $7.032m. That figure was made up of more than 143 subcontractors and suppliers. The other creditors were LDC shareholders and three other parties who lent just over $2m to the company. The ATO is owed $880,000 for PAYG and GST and Commonwealth Bank just over $110,000. Other big creditors includes $268,151 owed to Big River Group, $224,244 to Langs Building Supplies and $214,470 to Trend Windows & Doors.

At the time of Mr Karageozis being appointed LDC had 45 full time, part-time and casual staff.

The company was launched in 2018 and according to the QBCC, LDC completed 29 projects worth $19.4m in 2021-22 and wrapped up 59 projects worth $31.1m the previous year.

There are concerns that the company grew too quickly and on Facebook people took aim at the QBCC with one calling it “a bureaucratic basket case”.

Paul Schloss said: “This company started four years ago too big too quick … under the QBCC reporting how wasn’t this picked up 12 months ago ... you can’t go $7m in the hole in 12 months QBCC has a lot to answer for.”

Robyn Wallace said: “To hold a license in QLD, a builder is supposed to have sufficient assets to cover his projects. The QBCC is supposed to regulate this and the builder is required to have adequate insurance. Clearly someone is not doing their due diligence.”

Patrick Emery said: “QBCC has become a bureaucratic basket case. More concerned with protecting themselves through ad hoc legislation. QBCC is a bureaucratic failure, it should be ended and the government should study its failures so that they aren’t repeated.”

A QBCC spokesman said due to confidentiality laws, they were unable to publicly disclose any licensing information that is not on the publicly available QBCC licence register.

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