Huge scale of QNV collapse revealed
DEBTS of collapsed former Helensvale builder QNV Constructions are likely to be well over $3 million, with subbies out of pocket and home buyers in three states facing unfinished or defective projects.
Seven QNV companies, which were owned by disgraced developer Craig Gore before they were bought out by a billionaire British lord in 2008, went into administration yesterday.
In an uncommon twist, administrators Andrew Barnden and Brent Morgan of Rodgers Reidy were appointed by a company linked to QNV's ultimate shareholding company.
QNV's companies are ultimately owned by Mayfair Limited, an entity based in the Caribbean tax haven of Belize in Central America and controlled by billionaire British lord Michael Ashcroft.
Mr Barnden said early estimates were that $2.5 million was owed to unsecured creditors including subcontractors, and that staff wages and other entitlements were also outstanding.
There is also likely to be a substantial tax debt, and a high number of home buyers in Queensland, New South Wales and Victoria have been affected.
Mr Barnden said the administration had been triggered by an offshore company, Nova Global Overseas Ltd, which had loan an unknown amount to QNV in December, secured against the companies.
The first creditor meeting is to be held in Sydney on August 16, with video links to Brisbane and Melbourne.
QNV Constructions' Queensland building licence was suspended by the QBCC in January and cancelled in July, with its NSW licence pulled shortly after.
It made an early exit from the lease of its former headquarters at Siganto Dr, Helensvale in December.
The QBCC said it was seeking to ban those responsible for QNV from the state's building industry for three years.
The sole director of the QNV companies, Christopher Eaton, could not be contacted.
In Victoria, where QNV still held a valid licence yesterday, it is understood as many as 20 homes are incomplete or defective.
The Victorian Building Authority would not answer questions about why the company was allowed to remain licensed despite well-documented financial trouble.
"As the Victorian Building Authority's investigation into QNV Constructions is ongoing, it would be inappropriate to comment at this time," a media officer said in an email.
Shadow Minister for Housing and Public Works and Member for Burleigh Michael Hart said a Commission of Inquiry, with the same powers as a Royal Commission, was needed into the construction industry.
"It needs to look at the liquidation process, how ASIC fits into this, company law and phoenixing," he said.
"I hear about these things all over the State - from builders and from homeowners - it's happening everywhere."