A collapsed Canberra property developer owes more than $40 million, with apartment buyers and subcontractors unlikely to recover millions in losses.
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Deloitte - appointed as the administrator of the M and A Group - said investigations revealed the developer of the Esque apartment complex in Gungahlin owed about $22 million in secured debts and about another $20 million to unsecured creditors.
Deloitte said M and A Group's collapse had been due to bad investment in Halcyon Rise Pty Ltd, a related entity involved in a failed Sydney property deal.
Joint voluntary administrator and Deloitte restructuring services partner David Mansfield said secured creditors were not expected to receive a full return, which meant unsecured creditors were unlikely to recover money owed.
Deloitte said two secured creditors - who are owed almost $22 million - had appointed receivers to represent their interest.
The receivers had taken control of the settlement and sale of the remaining Esque units.
In December, Fairfax reported that as many as 15 subcontractors had not been paid after working on the 90-unit apartment building in Franklin.
The Gungahlin project had been plagued by a number of issues in 2017, including wrong colour schemes in some apartments and incorrectly sized whitegoods.
In June, residents were shocked when they were told to pay $563 for an electricity meter prior to moving into their units.
The developer changed tack a week later, offering to pay for the meters to compensate for the bungled colour schemes.
In November, a small number of residents complained after they were supplied with washing machines that they claimed did not fit in the laundry and fridges that were smaller than advertised.
Australian Securities and Investment Commission documents show Deloitte had been appointed as administrator on December 22.
Mr Mansfield the matter was complex and investigations were ongoing.
"Our investigations to date indicate that funds to be recovered from the Esque units will not be sufficient to meet the outstanding secured debts, and as a result, a dividend return to unsecured creditors unfortunately appears unlikely," he said.
"We are in the process of convening a meeting of creditors, where we will be recommending that the company be placed in liquidation."
Mr Mansfield said liability for property defects and emergency claims are also currently being probed
"In the event that the company is liable for these claims, the claims will rank as unsecured claims against the company, with a return to unsecured creditors unlikely.
"We have urged purchasers to seek their own legal advice regarding this matter."
