CQ builder investigation finds claims of insolvent trading
INVESTIGATIONS are continuing into the collapse of CQ builder Metro Builders, including claims the business made unfair preference payments and traded while insolvent.
Liquidator Jirsch Sutherland was appointed after Metro Builders closed on June 8 leaving debts of almost $5 million and 40 homes unfinished.
Jirsch Sutherland partner Chris Baskerville said he hoped to reach settlement with Edenbrook, the developer that owned the land on which Metro had two display homes.
One of the homes was completed to partial frame stage, the other was under contract.
Mr Baskerville said he was continuing to assist the QBCC in its efforts to compensate customers under the home warranty scheme and was still awaiting an independent insolvency report on the business.
He is also investigating claims of unfair preference payments and accusations of insolvent trading.
La Trobe Financial, as mortgage manager for Perpetual Corporate Trust Limited (first ranking mortgagee), has now advised the liquidator in writing that it took possession of 40<TH>Lexington Drive, Taroomball, on July 20.
This was the luxury $2.6million home that Metro Builders director Glen Finning and his family were living in prior to the business collapse.
Mr Baskerville said Le Trobe Financial now intends to exercise the mortgagee's rights under the mortgage and proceed with the sale of the property.
"Control of the sale is out of my hands,” Mr Baskerville said.
"Our preliminary investigations suggest that there will be no benefit to unsecured creditors from this sale.”
An investigation into Mr Finning's house at 40 Lexington Dr through RP Data showed it has four bedrooms, three bathrooms, two garages and a swimming pool on 930sqm of land.
Records indicate that in 2015, Mr Finning's wife Brenda was listed as the vendor receiving $2.6 million from the company Red Group (Aust) Pty Ltd when it purchased the house.
According to the Australian Securities and Investments Commission's database, the director of Red Group is Glen Finning.
Company searches show the Red Group is also the parent company of Metro Builders.
RP Data valuation modelling estimated the property's price range between $1.7 and $2.7 million.
Jirsch Sutherland is due to release its statutory report on or before September 11.