BA Murphy Constructions creditors to learn fate with liquidator payout looming

Liquidators are set to payout creditors of a major Sunshine Coast building firm which collapsed owing more than $19m. Read the latest on BA Murphy Constructions here.

The prominent Coast building firm had several projects in the works across the Sunshine Coast and Brisbane prior to its collapse. Pictured is a BA Murphy construction site in Pelican Waters.

Small businesses, suppliers, tradies and former employees of a major Sunshine Coast building firm which went bust have learnt how much money they’ll recoup after an almost $20m company collapse.

Sunshine Coast-based BA Murphy Constructions Pty Ltd folded in December, 2021, when FTI Consulting’s John Park and Ben Campbell were appointed as liquidators.

The initial scale of the collapse of the major building firm and its NSW and Victorian arms – sparked by the effects of Covid on the construction industry – was listed as about $11m, but later revised to north of $19m as liquidators’ investigations progressed.

In an Australian Securities and Investments Commission notice released on April 13, liquidators advised they were preparing to declare a “first and final dividend” to BA Murphy Constructions creditors in mid-June.

Creditors whose claims were yet to be admitted have been given until May 5 to prove their debts.

Responding to questions put by the Sunshine Coast Daily, liquidators referred to reports to creditors sent out in March and November last year.

A report to creditors dated November 8 outlined the estimated returns for creditors.

The former BA Murphy headquarters in Technology Dr, Warana.

Optimistic estimates listed full recoveries of wages and superannuation for BA Murphy Constructions creditors, 54c in the dollar for leave entitlements, but zero recoveries for redundancies and unsecured creditors.

BA Murphy Constructions (NSW) recoveries were expected to range from 1.5c-1.8c back on the dollar for unsecured creditors while liquidators hoped to make full recoveries for wages, super, leave and redundancies from the Victorian arm, but only 6c-6.7c in the dollar was expected for its unsecured creditors.

The companies were directed by award-winning Nambour-born builder Ben Murphy prior to entering liquidation.

The latest report to creditors outlined details of a deal struck by liquidators with BAM Corp Developments Pty Ltd, as trustee for the B.A. Murphy Family Trust, in September 2022, which was set to deliver about an extra $300,000 worth of recoveries across the parent company and its Victorian arm if approved by creditors.

Australian Securities and Investments Commission documents show BAM Corp Developments was a shareholder in the parent company and the NSW and Victorian arms of BA Murphy Constructions.

FTI Consulting lead administrator John Park. Picture: Cameron Laird

Property records show an Adaluma Ave, Buddina home – which was listed as Mr Murphy’s address in Australian Securities and Investments Commission documents – was sold for $7m on December 29, 2021.

The report to creditors states the family trust sold off a commercial property in Technology Dr, Warana, for $2.4m in June, 2022, but no recoveries were able to be made from that sale for unsecured creditors.

Mr Murphy declined to comment when contacted by the Daily.

It comes after FTI Consulting had previously advised it was set to declare dividends to creditors of BA Murphy Constructions (NSW) Pty Ltd and BA Murphy Constructions (Vic) Pty Ltd in early-April.

The latest report to creditors revealed liquidators had also been able to make $250,000 worth of additional recoveries related to settling preference claims against the Australian Taxation Office.