Gold Coast tradies will have to fight to get returns after first report by liquidator into Batir company crash

MOST of the Gold Coast subbies who worked on several public housing projects are unlikely to get their money back after the contracting company collapsed.

Batir company building site at Burleigh. Picture Mike Batterham

THE majority of Gold Coast subbies on several public housing projects are unlikely to get their money back after a contracting company collapsed owing more than $2 million, according to insurers.

A report to creditors on Batir Pty Ltd shows the Brisbane-based company owes $2,174,789 with $1.98 million in debt spread across 167 unsecured creditors.

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Some fence and haulage subbies are owed more than $100,000 but much of the debt is shared between plasterers, concreters and landscape suppliers from Yatala south to Chinderah across the Tweed border.

Qld Minister for Housing and Public Works Mick de Brenni. Photo: David Clark

While the amount of money owed is less than the Cullen Group collapse at the Robina Boheme site where total debts are tipped to reach $30 million, many subbies worked on both projects, leaving them facing a financial crisis in the New Year.

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Liquidator Thomas Dawson has identified Batir Pty Ltd had $1.6 million in assets but a large chunk of that money should be distributed among preferential creditors and pay for the liquidation.

Batir company building sites after they went bust, 1864-1866 Gold Coast Highway, Burleigh. Picture Mike Batterham

Acquire Trade Creditor business development manager Nathan Wrobel, who is working with insured subbies, doubts those without insurance protection will emerge financially unscathed by the liquidation.

“With that amount of assets I think not many of the uninsured creditors will be paid,” Mr Wrobel told the Bulletin.

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“Contractors with Trade Credit policies can be reimbursed up to 90 per cent of their loss with insurers. There are only a handful of clients who are insured.”

Batir is in liquidation. Picture Mike Batterham

Government tender documents reveal Batir had at least nine government contracts last year valued at almost $6.4 million, including social housing projects at Burleigh, Tugun and Labrador.

The State Opposition has questioned the due diligence undertaken by the Government on the company but National Creditor Insurance debtor documents obtained by the Bulletin give no hint that Batir was failing to pay its bills last year.

Subbies, lawyers and consumer watchers say the reason for the company’s financial failure remains a mystery.

Mr Wrobel said insurers had been unable to obtain much information on Batir, unlike many other developers, where management accounts and financials were provided.

“Which is why the underwriters were not hit as hard as they were with Cullen as they limited their exposure due to the lack of information,” Mr Wrobel said.

“Their site on the Gold Coast Highway at Burleigh was moving extremely slow and there were general concerns over that site and progress for months.”

Batir company building site at Burleigh. Picture Mike Batterham

The two-storey townhouse development at Burleigh was due to be finished by December and once worked stopped several tradesmen were spotted collecting sheets of plasterwood.

Subcontractors Alliance spokesman Les Williams yesterday urged tradesmen employed on the Batir sites to contact his group through its Facebook page.

“We want them to contact Subcontractors Alliance with the view to making sure they get their subcontractor charges submitted for the project,” Mr Williams said.

Subbies owned money could put in a claim to the liquidator but also send a request for the State Government for payment.

“We’re hoping we can talk to the department to facilitate them being paid. But they would have to do it legally by putting in subcontracting charges,” Mr Williams said.

Minister for Housing and Public Works Mick de Brenni, who suspended payments to Batir and took back possession of all sites after being told of their position, has encouraged subbies to seek independent legal advice and lodge a subcontractor charge.

Housing and Public Works Minister Mick de Brenni is encouraging subcontractors to send in charges or contact a lawyer and the Queensland Building and Construction Commission.

Mr Dawson, who met with creditors at DCL Advisory’s Fortitude Valley offices yesterday, is yet to determine how much subbies will receive from Batir’s winding up.

“It’s too early to say, unfortunately. We’ve only been involved for three weeks. We have to do the best that we can and see what we come up with,” Mr Dawson said.