20/05/2021 - 14:45

Creditors brace for Pindan meeting

20/05/2021 - 14:45

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Hundreds of affected businesses will gather next Friday for Pindan’s first creditors meeting since the construction giant's collapse, as administrators attempt to keep staff in work.

Photo: David Henry

Hundreds of affected businesses will gather next Friday for Pindan’s first creditors meeting since the construction giant's collapse, as administrators attempt to secure funding in a bid to keep staff and subcontractors in work.

A spokesperson from EY told Business News that administrators had spent the day with the state government and Bankwest trying to obtain funding for the company’s asset management business that would allow it to continue to service its government contracts and keep staff and subcontractors employed.

While not finalised, Business News was told this afternoon that there had been "positive progress".

Due to a lack of funding, all work on residential and commercial construction contracts under other Pindan Group companies has been suspended.

Business News can reveal that notices have been sent to creditors of the companies in voluntary administration today confirming that the first meeting will be held at 11am next Friday, May 28.

The news comes just hours after EY confirmed it had been forced to lay off almost half of the company’s workforce in its first 24 hours as administrators, with the majority of those roles at a senior level.

Pindan Group’s assets could soon be on the market as administrators EY trawl through the remnants of the construction group.

While it has not yet been confirmed how much money the company owes, initial estimates indicate it could be more than $A50 million.

Across the empire, Pindan had 68 active projects and 280 staff; but there are understood to be a further 500 subcontractors and 400 trade suppliers affected.

Administrators Sam Freeman, Vincent Smith and Colby O’Brien of EY were appointed administrators at 5pm on Tuesday night, after Business News revealed on Monday that subcontractors had walked off the company's construction sites after being told Pindan could not pay them.

Entities with administrators appointed included Pindan Group, Pindan Contracting, and Pindan Asset Management.

EY’s team were appointed liquidators to nine entities, comprising Pindan Capital, Pindan Capital Investments, Pindan Constructions, Pindan Projects WA, Pindan Homes, Pindan Constructions (NSW), Pindan Developments, Pindan Realty, and Moselle Holdings.

Pindan Group is owned by Singaporean-listed Oxley Holdings, which acquired a 40 per cent stake in 2016 before moving to full ownership in 2019.

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