Creditors seeks repayment from failed Brisbane builder CMF Projects

Creditors seeks repayment from failed Brisbane builder CMF Projects
Creditors seeks repayment from failed Brisbane builder CMF Projects

Creditors of Brisbane developer CMF Projects, which went into administration last month, have concerns about recovering money owed to them.

Some 225 creditors were noted to be owed more than $12 million by the builder, the Australian Financial Review reported. 

Well-known local developer ARIA Property Group is owed $3.4 million and Norfolk Estates owed $3.37 million.

CMF’s collapse is the first major builder’s collapse in Brisbane during the current cycle.

CMF Projects owes money to well-known brands and companies, including Winnings Appliances, Kone Elevators, Origin Energy, Telstra, Officeworks, Bunnings, architects Rothelowman and the Brisbane City Council, the AFR reported.

At the creditors meeting, CMF directors Greg Campbell and Cameron Fidler said it had "suffered historical losses leading to the appointment [of liquidators]".

When creditors asked why the company continued trading until immediately before to the liquidator's appointment, the directors said CMF had made "failed attempts to secure further funding".

Administrator and chairman of the meeting David Clout said the builder had "underquoted" on projects and had sustained "continued losses historically".

Tags: 
Brisbane Developer Finance

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