Monster group of construction companies collapse owing more than $80m

Two companies that made up a major Queensland construction firm have collapsed, leaving nearly 1000 creditors more than $80 million out of pocket.

Two companies that made up a major Queensland construction firm have collapsed, leaving nearly 1000 creditors more than $80 million out of pocket.

At the end of last month, news.com.au reported that Allroads Pty Ltd had gone into in liquidation owing $24 million to 721 creditors.

Another subsidiary of the business, Allroads Plant Pty Ltd, also collapsed that month.

In a document obtained by news.com.au in recent days, the appointed administrators of Allroads Plant have revealed that the company owes an eye-watering $59 million.

All up, that means across these two companies, creditors are owed $83 million.

The Allroads construction group specialised in civil construction and had taken on a number of major road and defence projects in Brisbane, Townsville and the Gold Coast adding up to more than $200 million.

It was headquartered in Larrapinta in outer Brisbane.

Queensland builder Allroads and its sister company Allroads Plant have both gone bust.

Allroads was involved in major projects across Queensland.

Allroads Plant was reliant on its construction arm to make most of its money.

But unfortunately for the firm, its main construction business, Allroads Pty Ltd, went into administration in March and then later a court forced it to go into liquidation.

This saw the Plant entity’s profits dry up overnight and its directors decided to place it, too, under external administration.

The administrators of Allroads Plant Pty Ltd, Darryl Kirk and Stephen Earel of insolvency firm Cor Cordis, said in their report to creditors that the way it made money was “to own and lease assets” used by its construction entity, which accounted for about 80 per cent of its revenue.

“The company also leased equipment to other related entities and external businesses,” they continued.

Its “main source of revenue was from invoicing Allroads for the use of its assets”.

The administrators have identified 700 assets which they are now looking to sell in a marketing and sales campaign to recoup funds for creditors.

A lot of these assets are heavy machinery for road construction, including excavators, rollers, body trucks, dozers and trailers. They noted many of these were under loan.

They also recovered 76 laptops and 36 vehicles from the company’s premises.

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The total debts are so far around $83 million across the two companies.

Of Allroads Plant’s $59 million in liabilities, $13 million of that is secured debt that creditors will be able to recover.

The bulk of its massive debt comes from money it owes to related businesses in the Allroads group, which makes up more than half the amount, at $35 million.

The rest of the debt is unsecured creditors.

They noted this debt level was expected to rise, as not everyone has submitted proof of debt claims.

Collapse of sister company Allroads Pty Ltd

News.com.au previously reported that the construction company in the Allroads group had more than 12 multimillion dollar jobs underway when it collapsed, including a $50 million project for an Australian Defence Force base in Central Queensland, a $35 million project for RAAF barracks in Townsville and a $92 million contract to build a metro depot in Brisbane’s CBD.

Of the debts of Allroads Pty Ltd, 145 staff are owed $3.9m in wages, super and entitlements.

David Stimpson of insolvency firm SV Partners is the liquidator of Allroads Pty Ltd.

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Originally published as Monster group of construction companies collapse owing more than $80m