Luxury Melbourne builder Dome Building may have traded while insolvent for more than a year

High-end Melbourne builder Dome Building may have traded while insolvent for more than a year before its collapse, liquidators picking through the group’s financial wreckage have revealed.

A collapsed luxury Melbourne builder may have traded while insolvent for more than a year before it called in liquidators.

And a former director of Dome Building is now trying to claw back more than $7m from the insolvency process, liquidators picking though the group’s financial wreckage have revealed.

The South Melbourne-based home builder, which specialised in high-end renovations in blue-chip Melbourne suburbs, collapsed in October last year.

But the group may have become insolvent in August 2022 when it signed off on a contentious loan to buy out former director Scott Wilcox from the business, liquidator PKF Melbourne says in its latest report.

Scott Wilcox is seeking $7.3m from the liquidation of Dome Building. Picture: Supplied

Mr Wilcox has emerged as a creditor, lodging a claim seeking $7.3m to cover what he says he is owed from a loan that was never paid.

“It is noted that Scott Wilcox Pty Ltd has asserted a secured claim in the liquidation for the amount of $7,293,970, being the balance payable under the Loan Agreement,” PKF liquidators Jason Stone says in the report.

“However, from a review of the relevant documents and information, the claim is currently considered (at most) a contingent unsecured claim for the purpose of the liquidation.

“Solicitors have been engaged to assist with this issue. This dispute is currently ongoing and therefore, no further details can be provided at this time.”

Dome Building collapsed in October 2023

Dome collapsed owing staff, suppliers and banking major National Australia Bank about $11.7 million.

Its downfall sparked a war of words between Mr Wilcox and his former business partners Jamie Brockman and Andrew Crellin.

Mr Brockman and Mr Crellin have blamed the company’s collapse on the August 2022 loan struck with Mr Wilcox, telling customers they were unable to negotiate revised payment terms.

Mr Wilcox branded that version of events as “misinformation”, saying he had loaned Dome a “very substantial” sum of money and spent months working with the company trying to negotiate loan terms.

Mr Wilcox issued Dome with a default notice for the loan in August 2023.

The latest PKF report notes the loan made to buy out Mr Wilcox – initially struck at $6.5 million – arguably made the company insolvent at the time it was struck.

“It is arguable that entry into the loan agreement may be an insolvent transaction if it can be shown that entering the transaction, or acts done to give effect to it, caused the companies to become insolvent,” the report says.

“It is also arguable that the company became insolvent when it was issued the default notice and demand for payment by Scott Wilcox Pty Ltd.”

PKF says it will undertake further investigations into the possibility Dome traded while insolvent but notes Mr Brockman and Mr Crellin would have a number of defences against any claim.