State Road Group: Major civil contractors owe millions, staff temporarily stood down

A major civil contracting group working on significant Sydney infrastructure projects owes creditors more than $50m, according to documents filed with the corporate regulator.

Entities under State Road Group have been placed in administration. Picture: State Road Constructions website

A major civil contracting group working on significant Sydney infrastructure projects owes creditors more than $50m, according to documents filed with the corporate regulator.

Administrators’ reports, lodged with the Australian Securities and Investments Commission, have revealed the sum collectively owed by the Central Coast-based civil contracting group, which has temporarily stood staff down.

Vincenzo Ferrazzano is listed as the sole director of six entities within the State Road Group, which are operated from a head office in Erina.

The company also has a depot in Smithfield, as well as a quarry depot located in Mountain View.

Documents lodged with ASIC indicate State Road Group owes secured creditors and lenders approximately $25m, priority creditors – employees and SGC – approximately $2m (excluding redundancy), unsecured creditors approximately $16.5m and related party creditors $9.6m.

The estimated total amount owing to all creditors is about $53.1m, the documents indicate.

Picture: State Road Constructions website

The State Road Group comprises several entities, including State Road Constructions, State Road Quarry Products, Markenzo Pty Ltd, Thorley Sand and Gravel, State Road and Plant Hire, and State Road Queensland.

According to the reports, tens of millions are owed to secured creditors, although some of the same registered security interests apply to multiple companies so amounts may appear twice.

State Road Group helped to complete the Sydney Light Rail Project and WestConnex M4 East and their current projects include the Sydney Metro West Tunnelling, M7-M12 Link Road, M1 Raymond Terrace Extension and upgrades to the Coffs Harbour Bypass.

The businesses were first registered between 2011 and 2017.

Richard Albarran, Kathleen Vouris and Cameron Shaw of Hall Chadwick, a global accounting group with offices across Australia and in New York, London and Singapore, were appointed administrators on February 4.

An administrators’ report revealed several factors contributing to the company’s financial difficulties.

According to the reports, the director’s explanation for difficulties can be attributed to trading losses across the State Road Group, inadequate cash flow to meet Commonwealth and state tax obligations, and multiple default notices for finance agreements and creditor statutory demands issued against various entities within the group.

Administrators have been appointed. Picture: State Road Constructions website

The report also states Mr Ferrazzano was involved in a refinancing deal that resulted in him falling victim to a financial scam, which NSW Police are currently investigating.

According to the administrators’ explanation, preliminary investigations into the company’s affairs suggest its failure may be attributed to undercapitalisation, insufficient cash flow, high leverage across the group, unpaid statutory liabilities, consecutive losses, and cross-collateralisation.

The administrators have continued to work with the company’s infrastructure project contractors to minimise disruption, with the aim of resuming works in the future.

As a result, several staff members have been temporarily stood down until these projects can be resumed; however, no staff have been terminated.

The administrators are currently liaising with multiple parties regarding interest in the assets and business of the State Road Group.

A second creditors’ meeting was held last week and was adjourned by the administrators to allow further time for sale negotiations and to provide a final opportunity for the director to prepare a deed of company arrangement proposal.

Picture: State Road Constructions website

The administrators are due to hold the resumed second meeting of creditors for the State Road Group in early April 2025.

The administrators were unable to comment on the NSW Police investigation.

According to the documents lodged with ASIC, Markenzo Pty Ltd and Thorley Sand and Gravel are presumed to have been insolvent for a seven-year period, during which it did not retain books and records prior to the appointment of Administrators.

In addition, it appears they may have traded whilst insolvent from at least June 30, 2022.

The documents also reveal State Road Quarry and State Road Constructions appear to have been trading insolvent since June 30, 2022, and State Road Plant Hire and State Road Queensland appear to have been trading insolvent since March 2024, according to the documents.

As per the figures in the documents, they may be subject to change given the administration process is in preliminary stages.

Mr Ferrazzano was contacted and declined to comment.

CORRECTION: An earlier version of this article incorrectly reported the figure administrators claim is owed by the companies comprising State Road Group. According to documents filed with ASIC by administrators, that figure is approximately $51.3m. not $132m, as an earlier version of this story incorrectly reported. This masthead apologises for the error.

Originally published as State Road Group: Major civil contractors owe millions, staff temporarily stood down