Builder Roberts Co avoids liquidation with $20m deal

Tycoon Andrew Roberts has struck a $20m deal with creditors of his collapsed building firm, but administrators warn unresolved subbie claims and stalled projects continue to pose challenges.

Tycoon Andrew Roberts has struck a deal with creditors of his collapsed building empire. Picture: Supplied

Tycoon Andrew Roberts has struck a deal with creditors of his collapsed building empire that will see him fork out $20m.

But administrators say there are still subcontractor claims yet to be resolved for the construction firm’s Victorian arm, as they look to work out how to mitigate losses for stalled projects across the state.

Creditors of Mr Roberts’ RCAH Group – a construction company specialising in delivering complex projects across various sectors, including health, education, and commercial development – voted on Monday to accept the deal.

The operations of the RCAH Group, which collapsed into administration in May, have recently been wound down and its Victorian subsidiary, Roberts Co (VIC), was placed into administration in March.

Mr Roberts is the son of Multiplex founder John Roberts.

The company’s most notable contracts were in Victoria, including an Amazon distribution centre in Craigieburn, an office tower near Parliament Station, a residential development project in Footscray and a clinical-scale mRNA manufacturing facility at La Trobe University’s Melbourne campus.

Projects in other states included being part of the consortium building the $1.8bn Women and Babies Hospital in Perth.

The group recently sold its business interests in Western Australia and separately sold Roberts Co (NSW), its New South Wales business to United Arab Emirates developer Arada in May.

Creditors of Roberts Co (VIC) separately agreed at a meeting on Monday to accept a plan for the Victorian arm on Monday.

The deal, which was proposed by the group’s ultimate shareholders Martigues – another Roberts-controlled entity – will see an extra $17.4m be made available, in addition to $2.6m he has already paid.

A spokesperson for FTI Consulting, who were appointed to the RCAH Group collapse, said the deal will also see the “forgiveness of significant related entity loans, which will improve the outcome to creditors of the group”.

They said former employees will receive all of their entitlements in full and unsecured creditors would receive up to 33c on the dollar, with smaller creditors expected to be paid in full.

The deal was proposed by the group’s ultimate shareholders Martigues. Picture: Supplied

“The (deal will) see the former employees and creditors of the companies secure a better outcome and provides greater certainty than had the group been placed into liquidation,” the spokesperson said.

FTI Consulting administrator Vaughan Strawbridge said his firm had worked closely with the administrators of Roberts Co (VIC), McGrathNicol, to wade through “issues in the group”.

“There is still a lot of work for McGrathNicol to undertake in resolving subcontractor claims and mitigating losses under contracts in Victoria, but this is a significant contribution to the payment of creditors that has been secured,” Mr Strawbridge said.

Mr Roberts, who is the son of Multiplex founder John Roberts, called in the administrators to his company’s Victorian arm in the wake of major projects blowing out in Melbourne.

Roberts Co (VIC) cited project losses, including on the construction of an Amazon centre, and the withdrawal of financial support from related companies as the main contributors to its collapse.

It was previously reported that creditor claims for the Victorian business had blown out to over $250m, owing subcontractors around $50m alone.

Roberts Co (VIC) administrator Jason Ireland put money owed to employees at $590,000.

A McGrathNicol report to creditors also said the Victorian arm had traded insolvent since last December and a liquidator could lodge a claim worth up to $40m.

The report said Mr Roberts may have acted as a shadow director of the collapsed Victorian entity, alongside a key executive, as he provided strategic advice and was involved in key decisions.

Mr Roberts denied this, telling administrators that his involvement was only as a “shareholder representative”.

Originally published as Builder Roberts Co avoids liquidation with $20m deal