Failed Bunbury builder Devaugh Pty Ltd has emerged from administration under the control of new owners Andrew Ellison, Kim Morrison, and Rob Martin.
Mr Ellison said there were plans to put an extra $2.5 million into the business and refocus it on areas where it had some strengths.
The new owners have also paid $2.6 million into a deed of company arrangement that will give unsecured creditors a return of 27 cents in the dollar.
Ferrier Hodgson partner Martin Jones, who was deed administrator of Devaugh, said creditors would get their money after he had finalised some payments from Alcoa and Worsley.
Mr Jones said former Devaugh director Mervyn Waugh had also paid-out the $388,000 towards the settlement to creditors and $200,000 to creditors to whom he had given a personal guarantee.
Mr Waugh has been employed by Devaugh’s new owners in a client liaison role.
Mr Ellison said Devaugh’s troubles stemmed from its moves towards diversification.
“Our plan is to focus more on the strengths of the business, which is servicing companies in the South West such as Alcoa, Worsley and Iluka. We’ll also be doing construction,” he said.
Devaugh’s workers have been caught up in the strike action being taken at Worsley.
Maintenance workers there want to be paid on the same rates as construction workers on the site.
Mr Ellison said that industrial unrest had started before he became involved with the company.
He said Devaugh’s Worsley workers were being paid at the construction rate.
Devaugh was placed into administration on December 31 owing 500 creditors about $12.6 million.
Its plight became a political issue after it was learnt the company was building the State Government’s Albany Justice Complex.
