RECOUP Contractor Debt Recovery represented many subcontractors as their proxy at the 1st Reed Constructions Creditors Meeting.

The following is a brief bullet point overview of the key events :

  • John Melluish, Administrator, Ferrier Hodgson Partner, chaired the meeting.
  • Ferrier Hodgson were confirmed as Administrators unopposed.
  • Creditors voted for a Committee of Creditors to be formed.
  • Creditors voted to appoint Brad Tonks, Insolvency Expert & Registered Liquidator of Lawler Partners as RECOUP Contractors Debt Recovery Clients representative on the Committee of Creditors
  • John Melluish gave an overview of Reeds financial position;
    • Assets : no amount advised
    • Debtors $13.4m
    • Employee Entitlements $5m
    • Secured Creditor (Westpac/St George) $48.1m
    • Trade Creditors / subcontractors $78.7m
    • Total Liabilities $182.1m
  • Glenn Bower of RECOUP asked the Administrators to confirm the NSW Governments position on the part completed Expert Determination Process. John Melluish confirmed that the NSW Government is committed to continuing in the Expert Determination Process through to its ultimate end, and if not then to commence Security Of Payments Act claims.
  • Glenn Bower of RECOUP asked Westpac/St George representative if Westpac/St George will continue to stand back and allow any monies coming from NSW Govt, RMS, DEC, DFS to flow firstly to Employees and then to Subcontractors. The Westpac/St George representative’s answer was : “No comment”.
  • Glenn Bower of RECOUP Contractor Debt Recovery asked Geoff Reed the following questions :
    • Mr Reed, do you stand by your previous commitment that you wont let any subcontractor lose their home as a result of Reed Constructions Australia Pty Ltd collapse ? Geoff Reed replied; “yes, as much as my assets will allow me to”.
    • Mr Reed, do you stand by your commitment to fund either personally or through you group of companies the ongoing Expert Determination Process and any necessary legal action including Security Of payments Act claims against NSW Govt, RMS, DEC, DFS ? Geoff Reed replied; “yes, to a reasonable point”.
    • Mr Reed, will you also provide funds to assist Subcontractors bring and prosecute an action against RMS which will be brought by Subcontractors for compensation for damages suffered arising from RMS negligence ? Geoff Reed replied; “yes, I will contribute”.
  • The meeting was concluded.
  • Now the way forward for the best outcome at the next stage:
    • Importantly now Brad Tonks will work towards achieving the best possible deal for Subcontractors in the ‘Deed of Company Arrangement’ that the Administrators will put forward for creditors to vote on at the next meeting.
    • The Deed of Company Arrangement mus ensure; Westpac/St George stand back and Geoff Reed locks into the abovementioned commitments.
  • Please contact RECOUP Contractor Debt Recovery on 1300 732 687 to ensure your vote will count towards some return for what you are owed.
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