Work has stopped on about 130 residential home building sites as Perth builder BuiltonCorp is placed into voluntary administration.
Key points:
- BuiltonCorp is the latest casualty of Perth’s building downturn
- The company owes about $16 million to creditors and $500,000 to staff
- Authorities are hopeful insurance will cover homeowner losses
Administrators Con Cordis have announced the company owes about $16 million to 350 unsecured creditors, mostly subcontractors.
They also said 38 jobs at the company had been axed, and a priority would be to return about $500,000 in unpaid entitlements to those workers.
The administrators were also appointed to Builton Group, Builton Property Holdings and Aspireon Homes.
“As we were only appointed yesterday, we are still in the process of investigating the companies’ financial positions, but what is clear is that the companies are unable to continue to trade,” Cor Cordis partner Dino Travaglini said.
Mr Travaglini said it appeared most of the losses had come from the company’s commercial building operations.
BuiltonCorp Pty Ltd had a turnover last financial year of $80 million.
The administrators are now trawling through BuiltonCorp’s financial records at the company’s Burswood offices and are…