Four states hit as builder collapses owing nearly $30 million

The group of companies are linked to a major building firm with construction sites spanning across four Australian states.

EXCLUSIVE

A national building company that collapsed earlier this month owes $29.7 million to creditors.

News.com.au previously reported that a group of companies linked to a major building firm with construction sites spanning across four Australian states had gone into administration and had paused all work.

Rork Projects (Holdings) Pty Ltd, Rork Projects (QLD) Pty Ltd and Rork Projects Pty Ltd specialised in refurbishment for the past 26 years, with 63 current projects across NSW, the ACT, Victoria and Queensland.

The appointed administrators, Anthony Connelly, Jamie Harris and Mark Holland of insolvency firm McGrath Nicol revealed in a report to creditors last week sighted by news.com.au that the businesses had racked up debts of nearly $30 million.

In comparison, the company has assets worth an estimated $697,000.

Of its debts, about half – $15.1 million – are owed to unsecured creditors such as subcontractors, trade suppliers, utility providers landlords and statutory authorities.

However, the administrators warned that this figure was likely to be higher by the time they finish their assessment.

A breakdown of the Rork Group and all its current project.

“The administrators consider there may be additional unsecured debts not yet taken to account by the Rork Group at the appointment date,” the report noted.

“In addition, claims may be received from Rork Group’s customers for breaches pursuant to building contracts.

“Accordingly, the value of secured claims is likely to increase.”

They pointed out that customers owe the company around $3.8 million for work already carried out.

However, they don’t anticipate much of a return, as they expect a number of these claims “to be disputed and offset against damages and defect claims for incomplete works”.

Rork’s collapse has left the fate of all 80 of its staff up in the air.

Staff are owed $2.25 million in employee entitlements, including $143,000 in unpaid super.

The business had offices in each of the states that it operated in.

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The company owes nearly $30 million to creditors.

Rork Group expanded in the last few years anticipating a massive return with projections that the business would rake in more than $100 million in revenue.

The cost of living crisis, however, put a stop to this, with the company’s director Brian O’Rourke citing a tighter labour market and rising as the reasons the business ultimately couldn’t continue.

Mr O’Rourke previously said it was with a “heavy heart” he had made the “devastating” decision to put his business into administration.

“Builders are in crisis because of high interest rates, labour shortages and material supply constraints following the pandemic”.

Indeed, the company made a net loss of $10.6 million in the last full financial year.

Between July to March when it ceased trading, it had racked up losses of $3.9 million.

The administrators have kicked off a sales campaign but they a proposal from a prospective buyer is yet to put forward a proposal.

They have received 11 expressions of interest.

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