Southern Cross Constructions (NSW) has been placed in voluntary administration by its directors, owing money to around 600 creditors who are mostly subbies.
The value of the debts has been estimated at around $17 million or higher according to the CFMEU.
Southern Cross Constructions (NSW) joins a growing list of failed NSW construction companies which have left a trail of debt to subcontractors.
Bruno Secatore, Jason Tang and Ozem Kassem of Cor Cordis have been appointed as administrators.
Mr Kassem said most of the company’s four projects appeared to be near completion so the administrators’ role was to determine the best way to see them completed.
The company provides building and construction services to developers in New South Wales across residential, industrial and retail developments.
Southern Cross has more than $230 million worth of building projects in New South Wales, including a retail premises at Balgowlah, and a Hurstville housing development.
“Part of our role will be to determine the best way to deal with those projects so that the ultimate return to creditors is maximised.
“We will also need to establish what is owed to each of the contractors whose ongoing support is required to complete those projects and we will also consider the future of the 39 company employees and their employee entitlements.
“It appears Southern Cross has close to 600 creditors located primarily in New South Wales” Mr Kassem said.
The first creditors’ meeting is scheduled for Monday November 5.
Mr Kassem emphasized that at this stage it was only Southern Cross Constructions (NSW) Pty Limited which had been placed under an insolvency administration and the other members of the
Southern Cross Group will continue to trade as normal.
On Tuesday demonstrations by the CFMEU construction union workers over unpaid wages took place at Balgowlah as between $4 million and $5 million was owed to sub-contractors employed on the site, according to the union.