A Canberra construction firm owed more than $21 million to subcontractors and businesses when it went into liquidation in January.
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Banyan Constructions had debts to more than 260 creditors, a creditors report by Ernst and Young showed.
Some, including small businesses, were owed in excess of $1 million. Of the 261 creditors, 232 were unsecured and were owed more than $20 million.
The company went into liquidation on January 20 when Ernst and Young's Henry Kazar and Lachlan Abbott were appointed liquidators. Banyan Constructions employed more than 20 staff.
The creditor's report, dated February 3, said the appointment had been referred to EY through the company's accountant, Papandrea Partners.
One subcontractor, who did not want to be named, said one family business owed money had been forced to sell their home, another had struggled to put food on the table.
Banyan Constructions was founded in 2013 by director Liam Kelly. He could not be reached for comment about the debts; his mobile was redirected to a message that said the service had been disconnected.
The firm had been building townhouses in Watson, Macquarie and Greenway, among other projects.
One of its projects had been The Ridge in Watson, which is being developed by JW Land.
In a January 19 email seen by The Canberra Times, Mr Kelly wrote to subcontractors that the developer had stopped the building firm's contract on the Watson site.
"JW Land have terminated Banyan Constructions contract on The Ridge Project in Watson and have taken possession of the site effective immediately," he wrote.
"A full list of contractors have been provided and arrangements to continue construction are in place.
"A new principal contractor will be in touch with all trades in the coming days to organise meetings and work with you all to mitigate further delays and deliver this project."
The next day the company was put into liquidation following a meeting with Mr Kelly, Mr Kazar and accountant Michael Papandrea.
The creditors report also showed another company owned by Mr Kelly, Abassi Investments was put into liquidation in May 2019.
Do you know more? Email: l.bladen@canberratimes.com.au
Lucy Bladen
Lucy Bladen has been a journalist at The Canberra Times since 2019. She is an ACT politics and health reporter. Email: l.bladen@canberratimes.com.au
Lucy Bladen has been a journalist at The Canberra Times since 2019. She is an ACT politics and health reporter. Email: l.bladen@canberratimes.com.au
