Worker debts tip of the iceberg

About $14 million is owed to Probuild employees, while Main Roads is among those grappling with potential project delays.

It could be weeks before the full fall out of the administration of WBHO Australia’s businesses, including Probuild and WBHO Infrastructure, becomes clear.

The federal court today approved administrators Deloitte to take a further three weeks for its initial assessment of the companies, with more than 2,300 creditors affected.

Deloitte's Sal Algeri, Jason Tracy, Matt Donnelly and David Orr were to have the first meeting of creditors this Friday.

Deloitte has said $14 million was owed to Probuild’s roughly 800 workers, which had been employed on nearly 20 projects.

But based on the company’s most recent financials, there will be at least $250 million owing to creditors.

The administrators intend to continue the business running while they look for a buyer, with the projects remaining open and managed by employees.

Most subcontractors have left sites, however.

Among the project owners who will be caught up in the collapse is Main Roads Western Australia, which had signed new contracts with WBHO Infrastructure last year.

When asked by Business News if the administration was expected to lead to delays for projects such as upgrades to the Mitchell Freeway and works on Great Northern Highway, a spokesperson said the implications were unclear.

"Main Roads will continue to work with WBHO Infrastructure on the implications for projects in progress, including how the works can continue to be delivered and subcontractors paid for work completed, subject to any insolvency laws,” the spokesperson said.

It was unclear yet what the impact had been on local subcontractors involved in those projects.

That was still to be determined with administrators, Main Roads said.