All Brick Tasmania: Construction company collapses owing minimum $2m-plus
A report filed with corporate regulator ASIC alleges an indebted construction company made an asset sale transaction to a company owned by the director’s father just weeks before the collapse. DETAILS >
Launceston
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A Tasmanian construction company that entered administration last month with debts exceeding $2m made an asset sale transaction to a separate company owned by the director’s father just weeks before the collapse, a report filed with corporate regulator ASIC alleges.
All Brick & Block (Tas) Pty Ltd, the company behind construction outfit All Brick Tasmania, entered external administration on April 11.
According to a report filed with ASIC by company liquidator David Levi of Sydney firm Levi Consulting, the company has debts totalling a minimum of $2,072,617.48.
The lion’s share of this debt, $1,973,056.44, is owed to the Australian Taxation Office.
About $76,000 is owed to trade creditors, while the company also owes money to several other people and entities owned by or part of the Barratt family who loaned money to the company.
They include All Brick director Matthew Barratt’s brother Tom, who is owed $14,885.18; Multi Res Builders Pty Ltd, owned by Mr Barratt’s father Colin, which is owed $7,799.97; and Barratt & Sons Pty Ltd, owned equally by Mr Barratt, Tom, and other brothers Luke, Sam and Ben, is owed $713.
There are also 11 contingent creditors that have been identified thus far, meaning they may be entitled to a dividend should certain conditions be met and the debt proven.
On the other side of the ledger, a series of Barratt-related companies are also debtors to All Brick.
All Carpentry (Tas) Pty Ltd, owned by Barratt & Sons Pty Ltd, was given a $95,896.74 loan by All Brick, as was Barratt Masonry Pty Ltd, owned by Colin, for the lesser amount of $1,780.12. All Brick itself is owned by Barratt & Sons
Nawkaw Pty Ltd, an unrelated company that provides stains and colour solutions for concrete and masonry, owes All Brick $53,854.15.
Mr Levi, the liquidator, said in the ASIC report that All Brick ceased trading prior to his appointment on April 11.
He said there were a number of “issues” relating to the company’s position.
“(All Brick) entered into an asset sale transaction with Barratt Masonry on March 17,” Mr Levi wrote.
“I am investigating that transaction, and also investigating other issues in connection with the financial position, business and the affairs of the company.”
Speaking to the Mercury, Mr Levi said the company had been “co-operative” with his investigation.
“I have presented to them various issues and they have come back to me with various responses. They have got their own legal representation,” he said.
When contacted by the Mercury, Mr Barratt said the asset transfer to Barratt Masonry was an effort to save jobs and redeploy the 25–30 staff employed by All Brick.
He said the decline of All Brick was due to industry-wide pressures on the construction industry, including the spiralling cost of materials and long-term, fixed-price contracts not keeping up with inflation.
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