Work could restart soon on the Moment townhouses in Whitlam but Imagine Building Concepts’ contractors look like being out pocket. Photo: Ian Bushnell.
Administrators of Canberra building company Imagine Building Concepts Pty Ltd and its related labour services company Imagine Management Pty Ltd have recommended to creditors that the companies be wound up.
The companies, owned by husband and wife team Tim and Sarah Staines, ceased trading on 9 October when RSM Australia’s Jonathon Colbran and Adam Cormack were appointed administrators.
However, the report found that the companies became insolvent on or before 1 July mainly due to losses incurred on previous projects and the company’s inability to secure a pipeline of future and ongoing construction projects.
The administrators’ report said the amount owing to more than 150 creditors – employees, sub-contractors, trade suppliers and the Taxation Office – was projected to exceed $6.5 million.
To date, around 50 proof of debt claims total about $4.6 million.
“Following asset recovery efforts and investigations into the financial affairs of the companies, we consider it would be in the creditors’ best interests for the companies to be wound up,” RSM Australia Director Adam Cormack said.
It was unclear whether unsecured creditors would receive a dividend due to the uncertainty of current recovery efforts.
While the book value of the company’s assets exceeded $7 million, the estimated realisable value was likely to be significantly less, the report said.
Based on the administrators’ review of assets and their recovery efforts to date, the amount that will be available for creditors will depend on what remains after the realisation of secured assets and any amounts payable to the companies subject to any offsetting claims by principals, particularly on completed projects where the defect liability period has not yet expired.
About 10 staff were immediately made redundant and work stopped on the one project in train, the Moment townhouses in Whitlam, which are due to be completed in January 2025.
“We have successfully negotiated a mutual termination of the contract that was on foot and understand the principal is now taking steps to recommence works on that project,” Mr Cormack said.
The staff will be able to claim what’s owed to them through the federal Fair Entitlements Guarantee, but the superannuation situation remains unclear.
Creditors will vote on the future of the companies at a second meeting on 13 November.
Imagine Building Concepts joined a number of Canberra-based builders that have gone bust in recent times.
These include two of the ACT’s most prominent firms, PBS Building in 2023 and Project Coordination this year, both of which have been wound up.
Rork Projects, Cubitt’s Granny Flats and Home Extensions and Voyager Projects also went under this year.
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