Frasers Property fed confidential information on Strongbuild's Edmondson Park readiness

Frasers Property fed confidential information on Strongbuild's Edmondson Park readiness
Frasers Property fed confidential information on Strongbuild's Edmondson Park readiness

Strongbuild went into administration after an external consultant fed confidential, incomplete information about its financial affairs to Frasers. 

The administration came after Frasers' eleventh hour works cancellation of the next stage at Edmondson Park in Sydney.

The cancellation meant a $10.5 million lending facility the company had arranged also fell through, Strongbuild managing director Adam Strong told Fairfax Media.

Strong said Frasers received confidential information from the consultant Strongbuild had engaged to assess its finances.

The consultant, who Mr Strong said had admitted to passing on information to Frasers, was unaware of the facility.

"We had this consultant doing the forensics, which was part of the process of raising equity and debt," Mr Strong told The Australian Financial Review.

"Unbeknown to us, he was feeding confidential information to one of our clients, Frasers."

Mr Strong declined to name the consultant. A Frasers spokeswoman declined to comment. Administrator Brian Silvia said he could not comment.

Frasers' decision to cancel work on 104 townhouses, two weeks ahead of the scheduled start, had "blindsided" Strongbuild, Strong said.

Strong who heads the family-owned Strongbuild said he believed Frasers terminated the second stage of its Edmondson Park project on the basis of the information it received from the client.  

Mr Strong said the consultant had owned up to passing on confidential information, but Frasers had denied receiving any such information about Strongbuild.

Mr Strong said Strongbuild had issued legal letters to the consultant and Frasers before the company went into administration on Thursday, but since he was no longer in control of the company, he could not do more.

"At the moment all we can do is reserve our rights to make a claim," he said.

 

Tags: 
Frasers Property Strongbuild

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