Probuild administrators say work to restart on some projects

Administrators hope to restart some projects next week, increasing the collapsed property group’s attractiveness to potential buyers.

Probuild signage on their construction site at the MLC building in Martin Place, Sydney.

Probuild administrators say they hope to get work restarted on some of the failed building giant’s projects next week increasing the attractiveness of the business to potential buyers.

Deloitte administrators Sal Algeri and Jason Tracy said an announcement on the sale of the company’s West Australian operation could be made as early as next week while they would attempt to find a buyer for as much of the east coast business as possible.

“The first week has been all about stabilising the business,” said Mr Algeri after the first meeting of Probuild creditors on Friday. “There are a lot of stakeholders.”

Mr Tracy said the administrators were negotiating with lenders and developers about continuing work on some projects but declined to name which ones were involved.

Administrators were last week appointed to Probuild, one of the country’s largest builders, after its South African parent Wilson Bayly Holmes-Ovcon pulled the pin on further financial support to the troubled Australian arm.

Administrators were continuing to trade the business in order to conserve its value for sale or a recapitalisation while undertaking investigations into the company’ collapse.

Probuild administrator Sal Algeri

“We would hope by next week to have at least one or two projects up and running,” said Mr Tracy. ”The benefit of that is that it keeps developers interested and workers and subbies employed.”

Mr Tracy said it was unlikely that all of Probuild’s 19 projects around Australia would be restarted under the administration, with some developers choosing to “go their own way” to get work completed.

Deloitte said it was not known how much the company owes creditors but it would become clearer in coming weeks. The company’s 700 plus employees are owed $14m.

Several major builders including Multiplex are understood to be chasing the opportunity thrown up by the collapse of the construction giant.

The Australian’s DataRoom column this week reported Italian group Webuild – previously known as Salini Impregilo – was also eyeing the firm.

Webuild, headquartered in Milan, specialises in civil engineering and construction and was formally founded in 2014 as a result of a merger by the incorporation of Salini into Impregilo.

Australia’s largest private builder Hutchinson Builders has confirmed it is in discussions with administrators over the future of the Probuild sites.

Hutchinson Builders chairman Scott Hutchinson said they have not “done anything formal” about taking on Probuild projects.

Probuild signage on a construction site in Martin Place, Sydney.

“They’re just prodding around at the moment. These things can take a long time,” he said. “They’re talking to our guys a bit. It’s just not a matter of carrying-on, it takes ages for people to realise the situation.

“You don’t hold your breath with these things. There are wheels within wheels. It can’t be done fast. They never are.“

Deloitte said a sale or recapitalisation of the business was likely to provide the best possible outcome for all stakeholders, including employees and secured and unsecured creditors.

But it said the scale, geographical spread and nature of Probuild’s business operations added significantly to the complexity of the administration process.

Many of the projects were large, complex developments involving multiple contractors and subcontractors, with the projects spread across Victoria, New South Wales, Queensland and Western Australia.

There were a significant number of stakeholders involved, including developers, clients, employees, unions, suppliers, contractors and subcontractors.

Originally published as Probuild administrators say work to restart on some projects