New reports reveal when the collapsed Jett Building and Construction company started facing trouble

More details have emerged about the Jett Building and Construction liquidation. Here’s what the new reports filed by the liquidators say.

New reports filed by the liquidators of Jett Building and Construction (JBC) have revealed the Yeppoon business had been facing trouble since at least July.

JBC was formally placed into liquidation on September 27, with Michael Beck and Morgan Lane of Worrells Solvency and Forensic Accountants appointed as liquidators.

At the time of the liquidation, Mr Beck and JBC company director Brett Dixon, claimed the company was owed $2.5 million by Downer FKG for works carried out for the Shoalwater Bay Training Area remediation project.

An initial creditors list revealed JBC owed 90 businesses and companies a total of $3,081,948.73.

A formal advice to creditors was filed with the Australian Securities and Investments Commission by Mr Beck on September 30.

A summary of correspondence between Mr Beck and the company and/or their advisers is detailed in the report.

Mr Beck first received a phone call from JBC lawyers on July 5 and they discussed the financial affairs of the company.

The details of the company were not disclosed during this time.

On July 14, discussions were had about the effect of liquidation on the company’s QBCC licence and the potential termination of contracts the company was party to.

On August 20, Mr Beck and co-liquidator Morgan Lane met with the JBC director Brett Dixon, the chief financial officers and their lawyers about the company’s affairs and the options available.

In the days leading up to the official liquidation, on September 21 and 22, Mr Beck received emails from the JBC lawyers with an update on the company’s affairs and various demands from creditors.

On September 23, Mr Beck emailed and phone Mr Dixon and their lawyers about commencing liquidation and collected the necessary documents to place the company into liquidation.

More correspondence was detailed in period from July 5 to September 23, with multiple telephone calls and emails with the lawyers representing JBC.

The report states the company has gone into a creditors’ voluntary liquidation, which is a liquidation initiated by the company where it cannot pay all of its creditors in full and the company is insolvent.

All creditors of the company are now creditors in the liquidation and the debt will be dealt with in the liquidation.

The amount of money creditors will receive depends on the amount the liquidators can recover, including from finding and selling the company’s assets.

After paying the liquidators fees, creditors share the remaining money, called a dividend.

This amount will vary between creditors as the law requires different types of creditors to be paid before others.

Worrells has requested to be paid $17,499.50 for work completed from September 27 to 29 and estimate work to the equivalent of $55,440 from September 30 to finalisation.

Another report on the company activities and property has detailed some more of the debt.

The company owes employees a total of $73,862 with $47,637.45 for annual leave, $4,497.70 in time off in lieu and wages of $21,726.93.

JBC had 15 permanent staff and 14 casuals at the time of the liquidation.

As listed in the creditors report this publication published on October 1, JBC owes the Australian Taxation Office $1,180,088.

The company also owes a combined $372,617 to the National Australia Bank for an overdraft, equipment finance and bank guarantee.

Listed under money owed the company, the report states JBC is owed $1,267,011 by debtors and an amount of $201,300 realisable from this sum.

The company has $91,923 cash at bank and the retentions are $163,922.

JBC is estimated to have $90,000 of inventory and consumables and $310,000 worth of plant, equipment and motor vehicles.

A payment claim for “Shoalwater Bay” is listed for $2,500,000.

The Morning Bulletin understands JBC had contracts for construction and carpentry work in the Shoalwater Bay Training Area remediation project, to which Downer FKG are the managing contractors of.

An initial statement by Worrells claimed the “non and delayed payment on this project resulted in the liquidation of the company”.

Downer FKG initially did not comment and three days later sent a statement that claimed JBC had been paid in full for all of the work it had completed on the project to date.

JBC director Mr Dixon’s claims contradict Downer FKG’s, as he claims he was owed millions of dollars by DFKG for unpaid claims and variations.

The project is a project of the Australian Defence Force however this publication has only been able to receive a one-line statement from the department on the matter.

“JBC were engaged by the managing contractor, Downer/FKG as a subcontractor on the Shoalwater Bay Training Area Remediation Project. Defence has no direct contractual relationship with JBC,” the Defence statement read.