The founder of a Victorian home builder has a preliminary plan to get the company out of administration
The founder of Victorian home builder Mahercorp has a preliminary plan to get the company out of administration.
Mahercorp is the parent company of two Melbourne builders, Urbanedge Homes and Eight Homes, The Australian reported.
The Victorian home builder went into voluntary administration last month, putting its building projects on hold. However, founder Steve Maher insisted the company would survive.
At a first meeting with creditors on Thursday, administrators Jeremy Nipps, Rachel Burdett and Barry Wight of Cor Cordis said they had received a preliminary draft of a company arrangement from Maher, according to The Australian.
“As I promised, I have submitted a plan to the administrators that will put Mahercorp in a better position to keep operating and get customers’ homes built during this really difficult time in the construction industry,” Maher told the publication. “I’m optimistic – I think my proposal means that we’ll be able to keep building and finish homes, give our suppliers and trades more certainty and avoid adding to the challenges being faced by the industry right now. The plan is in the hands of the administrators right now, so there’s not much more I can say ahead of their report and recommendations.”
Read more: Collapsed builder owes $40m
Cor Cordis said it was continuing to investigate a proposed restructure of the company. The administrator will make a report available to creditors on May 22, with a vote on Mahercorp’s future scheduled for a week later, The Australian reported.
Construction sector reeling
Mahercorp is just one of many construction firms to be impacted by a perfect storm of rising interest rates, spiking labour costs and supply chain issues. Several firms have collapsed completely in recent months, leaving creditors unpaid and projects unfinished across the country.
Mahercorp’s administration halted construction on about 730 homes, The Australian reported. It came only weeks after the collapse of fellow construction firm Porter Davis, which went into liquidation leaving more than 1,700 homes unfinished.
After calling in administrators, Maher said in a letter to customers that his company had not collapsed and was not in liquidation, and he was working on a plan to restructure the business, The Australian reported.
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