Investigation into insolvent Metro Builders begins
THE future of Metro Builders is now in the hands of national insolvency firm Jirsch Sutherland.
The administrators were appointed as liquidators on Tuesday after the company shut its doors on Friday, leaving an estimated 24-homes unfinished.
Director of Metro Builders, Glen Finning, initiated the process after leaving sub-contractors, suppliers, and home owners out of pocket by more than $2 million.
Partner of Jirsch Sutherland, Chris Baskerville, said the firm had begun its investigation into the financial state of the company.
However he was still awaiting access to the company's accounting books and records.
"We are still gathering information to determine the exact asset and liability position of the company," Mr Baskerville said.
"We are currently gathering material to determine the state of affairs and hope that we will have further information in coming weeks which will enable us to establish whether the company has any other assets that could be realised to repay creditors."
Jirsch Sutherland's first report to creditors will be issued within the next week.
"Creditors and interested parties should make contact with the Jirsch Sutherland Brisbane office to register their claim," Mr Baskerville said.
The Queensland Building and Construction Commission (QBCC) has begun contacting home-owners from Metro Builders to help them navigate the situation.
A spokesperson from QBCC said home-owners with incomplete projects may be able to make a claim against their Queensland Home Warranty Scheme (QHWS) insurance.
"It's important for home-owners to be aware that although the company's licence has been suspended, this does not mean that their contract is automatically terminated," the spokesperson said.
"Before a QHWS claim is lodged with us, the contract must be legally terminated.
"Terminating a contract can be complex.
"We encourage home-owners to seek legal advice so as to properly protect their rights."
The spokesperson advised that on June 11 QBCC suspended the licence of Red Group, also known as Metro Builders.
On June 12 it commenced exclusion action against the company and directors.