Caldwell Construction & Interiors collapses leaving creditors in the lurch for millions

Caldwell Construction & Interiors collapses leaving creditors in the lurch for millions
Caldwell Construction & Interiors collapses leaving creditors in the lurch for millions

Cadwell Construction & Interiors went into administration in May with $4.2 million-worth of projects still in progress after costs on multiple projects blew out.

It occurred after a major project was put on hold, according to a creditor's report.

Unsecured creditor claims total $11.68 million. 

Jason Tracy and Kathryn Evans were appointed administrators on May 7 pursuant to Section 436A of the Corporations Act 2001.

South Western Sydney Local Health District is one of the company's largest unsecured creditors.

They are owed just over $1.8 million while Kincoppal Rose Bay School is owed almost $800,000.

South East Sydney Local Health District is owed more than $294,000, while Nepean Blue Mountains Local Health District have been left with a $63,000 hole.

"The minister needs to explain exactly how it has occurred that taxpayers are owed over $2 million on projects across Sydney and more importantly what steps are being put in place to prevent this happening again," said Opposition health spokesman told Nine Entertainment.

"This is money that should have been used to pay for more nurses, health workers and paramedics.

"That's certainly what the community expects government to do when they pay their taxes."

The company operated as head contractor providing commercial fit-outs and refurbishment services.

The company specialised in the healthcare, education and commercial office industries.

At the time of appointment, the company employed over 20 permanent staff.

The company experienced strong revenue growth from $15 million in FY17 to over $30m in FY18.

At the time of the administrators' appointment, there were 20 projects at various stages of completion.

The company was incorporated in NSW on 2 December 2009, with the registered office shown as 57 St Johns Road, Glebe. There are two directors, Soren Jenson and Hans Thomsen.

There are dozens of unsecured creditors listed as being owed up to almost half a million dollars.

The administrators made it clear that none of these creditors should expect to get any money back.

In March 2019, it became known to Cadwell management that the Browne Street Mental Health Community Centre project, which was previously showing a profitable return, reported a significant loss.

Cadwell had been building the Brown Street Mental Health Community Centre in Campbelltown, when management learnt the project was reporting a loss of more than $500,000, and was three months behind schedule.

It came after the company suffered delays and losses of about $960,000 on the Kincoppal-Rose Bay School year 12 learning hub project, and $700,000 on The Orchard Childcare Centre in Kirrawee in 2018 and 2019.

Around this period a large project for the NSW Department of Education, worth a reported $4.2 million, was also put on ice.

Tags: 
Property Development Nsw Government

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