UPDATE: More companies added to Busby Contracting debt list
BUSBY Contracting's liquidation is set to be wound up by the end of this year as their debts have blown out to almost $5 million.
The company, which went into voluntary liquidation in February 2018, claims the liquidation was a result of underquoting liquidation of associated major debtors and flooding of their project sites.
It was initially reported the civil and minesite contracting construction company owed $2.4 million to creditors, employees and the tax office.
In fresh documents obtained by The Morning Bulletin, it has been revealed the debt was estimated to be $4,775,388.78.
FTI Consulting was appointed as an administrator on February 5, 2018, however the company could have been insolvent from as early as mid-2016.
Public documents on the Australian Securities and Investments Commission detail the extent of the debt.
At the time of administration appointment, Patrick Busby and Donald Stephen were directors of the company.
Administrators and liquidators were subsequently appointed to Busby Plant Hire, a related party which hired various plant and equipment to the company.
Busby Contracting owes a total of $723,666.19 in employee superannuation and leave entitlements.
It is stated there are no secured creditors and $4,051,722.59 is unsecured, while $326,115.01 has been paid since the administration took over.
From February 2019 to February 2020, $109,793 has been paid to Deputy Commissioner of Taxation and Australian Taxation Office.
A total of $12,400.33 was also paid back to Woollam Constructions in retention moneys and $6,059.23 has been spent in legal fees.
Busby Contracting only expects to receive $130,000 in the foreseeable future.
FTI Consulting have been paid $278,692 to date, of which $7310 has been dispersed
The liquidation is expected be finalised in December.
In a statutory report to creditors filed in May 2018 it is detailed that from the administration appointment date, two employees remained employed for six weeks to assist with finalising unbilled invoices, collating books and records and securing assets.
Liquidator investigations revealed the company may have been insolvent from as early as June 30, 2016.
The liquidators investigations states the company's demise was lack of internal controls, industry downturn, liquidation of two key customers in 2015 and 2017 leading to significant write-offs and poor management of debtors and retentions.
The company directors claim the debt was a result of underquoting on projects, significant delays in debtors payments, liquidation of major debtors, flooding of their project sites and premises due to the natural disasters.
At the February 2018 liquidation appointment, the three companies who owed Busby Contracting the largest amount of money was Woollams Constructions, Ostwald Bros and Moorvale Earthmoving.
Moorvale Earthmoving and Woollams Constructions disputed the combined $259,317 debt because of defective work.
Ostwald Bros owed $182,510, however was in liquidation and only $33,508, less legal costs, was expected to be recouped. There was also $11,182 spent in legal costs to recoup the money.
Ostwald owed money from a $3.2 million contract for the expansion works of the Dugald River Mine Village.
LIST OF UNSECURED CREDITORS OWED MONEY BY BUSBY CONTRACTING
Amounts owed as per company records on ASIC documents
Abuzz Couriers Dysart: $907.50
AllPhase Building and Construction Innisfail: $6,127.68
Almost Anything Web and Graphic Rockhampton: $941
APN Newspapers: $1,707.40
Arnold's Advanced Tyre Centre Rockhampton: $1,834
Austin Engineering: $4,358.20
Australian Reinforcing Company NSW: $13,857.32
Baker's Transport QLD Kabra: $1,700
Barlow's Earthmoving Rockhampton: $37,613.11
Battery World Rockhampton: $210
Beaneys Communications Rockhampton: $1,342
BOC Limited: $125.76
Brain Martin's Sheet Metal Mackay: $1,834
Bullivants Handling Safety NSW: $2,564.34
Busby Demolition Rockhampton: $17,341.52
Busby Plant Hire Rockhampton: $200,608.20
C & R Communications Rockhampton: $579.95
Capricorn Survey Group Rockhampton: $852.50
Capricorn Total Repairs Rockhampton: $344.85
CCMT Laboratories Capella: $11,839
Ceads Yeppoon: $3,223
Central Coast Screens and Cap Coast Yeppoon: $5,865.07
Central QLD Compliancing Bucasia: $291.50
Civil Safety and Training Moranbah: $300
Clark Rubber Townsville: $8,500
Complete Mechanical Support Moranbah: $3,271.02
Concrete Pumping QLD Emerald: $49,261.81
Courage Hire Mackay: $440
CQ Crane Hire Rockhampton: $13,678.41
CQ Fasteners Rockhampton: $8,613.80
Creepy Crawly Pest Control Rockhampton: $382.24
Deputy Commissioner of Taxation: $1,400,000
Discovery Park Emerald: $891
Filter Resources Rockhampton: $228.25
Frame Maintenance Rockhampton: $5,419.16
Freight Solutions Rockhampton: $1,540
Gleesons Plumbing Yeppoon: $23,986.50
Global Fasteners Mackay: 16,643,94
Goody's Earthmoving Bouldercombe: $7,630
Gracemere Family Practice:$1,452
Grant and Simpsons Lawyers Rockhampton: $6,182.20
Greg Evans Excavator Hire MenerambI: 4,994
Hastings Deering Rockhampton: $7,828.27
High Country Enterprises Moranbah: $1,745.95
ICT Concreters Warehouse Rockhampton: $14,189.37
Inspirations Paint and Colour Rockhampton: $901.09
IQS Solutions Bundaberg: $1,175.32
J Blackwood and Son Victoria: $2,845.66
JABS Enterprise Moranbah:$770
JCB Construction Equipment Mount Pleasant: $1,183.56
Ken's Plumbing Plus Bundaberg: $2,904
L & H Group Victoria: $5,315.13
L & T Hallett Transport Gracemere: $407
Light Vehicle Solutions Moranbah: $8,655
Livingstone Shire Council: $5,330.76
LJ Hooker Rockhampton: $2,612.20
M & S Stanton Family Holdings: $13,901.14
MCG Concrete Morningside: $26,285.64
Meals Concrete Pump Gladstone: $20,273.62
Moorvale Earthmoving Mackay: $10,958.27
Moranbah Discount Tyre and Mech: $3,638.50
Moranbah Rural Supplies: $1,972.79
Murphy's Heavy Haulage Monto: $1,972.79
MVS National Rockhampton: $330
Newsome Tyre and Mechanical Rockhampton: $2,477
Norosco Hose and Fitting Supplies Rockhampton: $1,125.62
Norstate Industrial Supplies Rockhampton: $135
Ocwen Energy Goondiwindi: $21,672.86
On Hire Rentals Rockhampton: $36,287.56
Porters Can Do Mackay: $12,709.51
Portmoresbey Cecil Rockhampton: $3,893.86
QLD Crane Maintenance Mackay: $915.48
Quarrico Products Mackay: $7,665.15
Rapid Electrical Service Mackay: $8,455.95
Raymond McAtamney Gracemere: $44,661.58
RDA Credit Fix Beenleigh: $3,500
RMD Australia Rockhampton: $8,644.63
Rockhampton Mini Mix Concrete: $1,788.60
Sharp Training Mackay: $900
Slacks Concrete Emerald: $3,224.40
SMW Group Rockhampton: $10,658.58
Sonic Health Plus: $3,162.50
Steve Sanger's Survey Tannum Sands: $715
Tandy Concrete Rockhampton: $16,128.90
Tara Hills Couriers Walkerston: $435.60
Terrascan Mackay: $1,386
Terrequipe Rockhampton: $521.68
Thomson Geer Lawyers Brisbane: $3,704.64
Total Concrete Cutting Emerald: $17,278.22
Total Hire Solutions Rockhampton: $30
Ulton Group Bundaberg: $21,648
Wolff Mining Toowoomba: $2,763.75
Woodman McDonald Hardware Mackay: $1,458
Yeppoon Medical Centre: $379.50
Priority Employee Creditors including superannuation: $425,031.81
Employee creditors including superannuation: $427,703.07