PPB Advisory, the company handling the voluntary administration of the Hewatt group of companies, expects to have spent between $175,000 and $200,000 by the time the first meeting with creditors begins on Tuesday.
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The figure could be considerably higher given neither ''GST or disbursements'' have been factored into the estimate. It is already more than a third of the $535,000 the ACT earth-moving group – whose financial problems have raised concerns about the future of the $288 million Majura Parkway project – paid its self-appointed administrator upfront on May 9.
Documents provided to Hewatt creditors also show discussions about the group possibly going into voluntary administration were taking place at least as early as April 1.
This was more than a month before hundreds of workers in Canberra and on other sites across central NSW and on the south coast were stood down without pay, or notice, on May 9.
PPB said the money was being used to cover operating costs. ''(The upfront payment) covers (the) expenses of the administration,'' creditors have been told. ''If there is a surplus it may be applied to (the) administrator's remuneration and disbursements.''
Responding to questions from Fairfax Media, a company spokesman said: ''PPB Advisory had not drawn any fees since being appointed as voluntary administrators of Hewatt Pty Ltd, Hewatt Grader Hire Pty Ltd and Carmelina Management Pty Ltd (Hewatt) on May 8. A detailed remuneration report outlining fees charged during the administration period will be sent to creditors and a resolution to draw these fees is (to be) tabled at the second meeting of creditors.''
The insolvency specialist charges $620 an hour (plus GST) for the services of a partner or administrator, $490 an hour (plus GST) for a senior manager, $370 an hour (plus GST) for an analyst, $190 an hour (plus GST) for a senior bookkeeper and $120 an hour (plus GST) for the services of a clerk.
''Our firm charges professional fees on the basis of time spent by the principal appointees and our staff at rates reflecting their level of experience,'' PPB Advisory said.
A Hewatt group adviser employed at Duesburys Nexia contacted PPB on April 1 ''to discuss the financial difficulties of the group at a high level'', a ''declaration of relationships'' provided to creditors before Tuesday’s meeting states.
On April 8, Geoff Hewatt, his wife Susanne Bauer, and other members of the Hewatt group management team, met Stephen Parbery (subsequently appointed one of the ''joint and several'' administrators to the group) and his associate, Marcus Ayres.
''At this meeting Messrs Parbery and Ayres communicated the need to rapidly resolve the group’s position with Fulton Hogan Pty Ltd (the lead contractor on the Majura Parkway project) because it appeared material to the group’s ability to continue trading,'' PPB Advisory told creditors.
On May 1, PPB’s Alan Walker (also subsequently appointed an administrator) met Mr Hewatt and his management team ''to conduct contingency planning in the event the directors were to appoint administrators''.
''Advice was (again) given to the (Hewatt) directors that the group remained in a position which required it to urgently resolve the position with Fulton Hogan,'' creditors have been told.
Further talks to prepare for the appointment of PPB as voluntary administrators ''in the event last-minute discussions with Fulton Hogan were to fail'' were held on May 6 and 7.
PPB said it received no remuneration for any of its actions up until this point and that the discussions constituted ''pre-appointment advice''. ''The advice does not, in our opinion, give rise to a conflict of interest or duty.''
