Creditors of five PBS Building companies, currently in the hands of Administrators, today voted to wind up four companies – including two construction arms in the ACT and Queensland – but opted to give the NSW building company a lifeline to enable payments owed to be pursued through the courts.
Approximately 50 PBS creditors attended today’s meeting (6 September) in Canberra in-person or virtually to receive an update from Voluntary Administrators – RSM Australia Partners Jonathon Colbran, Richard Stone, and Mitchell Herrett – and to vote on the future of the five companies.
The majority of creditors accepted the Administrators’ recommendations as outlined in their supplementary report lodged with the Australian Securities and Investments Commission (ASIC) on 1 September 2023.
Creditors voted to put PBS Building Pty Ltd, PBS Building (ACT) Pty, PBS Building (QLD) Pty Ltd, and PBS Management Company Pty Ltd, into immediate liquidation and to enter a Deed of Company Arrangement (DoCA) with litigation funder Clover Risk Funding for PBS Building (NSW) Pty Ltd (PBSB NSW).
RSM Australia Partner Jonathon Colbran said the DoCA with Clover would give Administrators additional time and funding to continue legal action to recover progress claims worth more than $3 million owed to PBSB NSW through the Security of Payments Act.
"While there are no guarantees, the DoCA provides creditors of PBSB NSW with the best possible chance of maximising the return they may receive,’’ Mr Colbran said.
``What was made clear to creditors, is that today’s meeting does not represent the end of developments and updates, but rather is a further step in what remains a complex and lengthy process to determine the final value of creditor claims and the value of PBS assets available to creditors,’’ he said.
``It is expected that a number of matters, including resolving competing creditor claims and rights to assets, finalising existing and anticipated litigation, and considering the value of final creditor claims, will take at least 12 months.
"Each legal process needs to run its course before we reach a final outcome. Litigation takes time and there are a number of complex and contested matters that we are dealing with across the five PBS companies.”
Administrators will continue to provide written updates to creditors when there are material updates to report.
FOR MORE INFORMATION
Creditors with questions can also contact RSM via email at [email protected] or (02) 6217 0228.