Liquidators of failed Gold Coast builder Condev find it was losing money for months before collapse

More details have emerged about the liquidation of one of the Gold Coast’s biggest builders, shining light on the company’s shock collapse – and the aftermath.

Liquidators of failed Gold Coast construction giant Condev have found it was haemorrhaging up to $1.5m a month in the 10 months before its collapse and had been entering into “unprofitable contracts”.

Debts to subcontractors, staff and other creditors have been revealed as more than $56m, sharply higher than what was initially disclosed in the director’s report, while liquidators also found Condev’s accounts were not kept up to date.

The report revealed Condev’s financial troubles were years in the making, with the company logging profit of just $536,000 from income of $175.7m in the 2019-20 financial year.

The company logged a net loss of $358,000 from income of $181.3m last financial year.

Condev building site at Main Street, Varsity Lakes. Picture: NIGEL HALLETT

Liquidator Jason Bettles said ongoing investigations into the Condev failure showed the company had lost money in all but one month since June 2021 and even the profit in that month might prove to be an anomaly.

Its losses in the latest financial year had totalled $7.528 million by the time liquidators were appointed.

The company’s net assets tumbled from $11.1m in 2019 to $5.6m in March 2021.

Fellow Worrells liquidator James Robba of Worrells found Condev had recorded a $5m funding guarantee as an asset, which “artificially increased” its net asset position.

However this $5m was “not available” when the company needed it.

An investigation is under way as to whether the company was solvent when it collapsed, with liquidators indicating Condev had been “experiencing issues with its solvency since at least November/December 2021”.

Condev’s former office. Picture: Sarah Marshall

Liquidators said 18 vehicles, trailers and/or boats belonging to the company remained “unaccounted for” and that investigations were continuing into what became of them.

The report found priority creditors, which include staff, were owed $1.8m; unsecured creditors were owed $47.3m; and secured creditors were owed $6.9m.

The report said priority creditors could expect dividends of between 21c and 30c for every $1 they’re owed within six to 12 months, however the report said there would likely be “insufficient funds” for nonpriority and unsecured creditors to receive anything.

Condev founder Steve Marais sitting down with the media to discuss the collapse of their company at their Robina headquarters in March.

Mr Bettles said there was a likely a return to secured creditors but there was doubt over other creditors receiving a payment.

The liquidators in their report said directors and holding companies of Condev may be held liable if it were found to have traded while insolvent.

The report said Condev was wholly owned by a company and associated trust, D’urban Holdings, directed and held by Condev co-founder Tracy Marais.

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Liquidators found Condev director Steve Marais sold a property at Robina a month after the company collapsed and so no longer owned any real estate.

They found Mr Marais was the current registered owner of a 2005 Riviera M370 Sports Cruiser boat.