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Highlights
- Tasmanian Constructions has announced that it was winding up, leaving many homebuyers in limbo.
- The company informed the ASIC on 4 January 2022 about its decision of going into administration.
- Tasmanian Constructions has appointed Jarvis Archer of Revive Financial as the liquidator.
With major construction company Tasmanian Constructions announcing that it was winding up, dreams of several home buyers have been shattered. The construction firm led by Craig Graeme Ellis, which owns the Hotondo Homes franchise in Hobart, was facing challenges in sourcing building materials, leaving many ongoing and future housing projects in limbo.
The company informed the Australia Securities and Investments Commission (ASIC) on 4 January 2022 about its decision of going into administration. Going into administration is a scenario when a firm becomes insolvent and is put under the management of Licensed Insolvency Practitioners.
As a result, Tasmanian Constructions has appointed Jarvis Archer of Revive Financial as the liquidator. The latest development is expected to financially hit the future of 80 contractors and 40 customers.
“The company was slower to achieve progress milestones and issue invoices, severely impacting cashflow and its ability to continue operating,” ABC News quoted Archer as saying.
The company is expected to have nearly AU$1 million in liabilities. However, the figure doesn’t include the amount that might have already been claimed by the customers.
Image Source: © Khz | Megapixl.com
"Available assets are being collected and sold, and investigations have commenced into the company's affairs, insolvency and causes of failure," Archer also said.
Meanwhile, the Tasmanian government is investing AU$615 million into social and affordable housing, and homelessness initiative.
Recently, Michael Ferguson, Minister for State Development, Construction and Housing, said that the State’s affordable housing scheme had delivered 1,922 additional new homes, land lots and new places in supported accommodation and homeless services, including 938, since July 2019. “This is on top of 1,370 dwellings in the pipeline, including 1,075 new social housing dwellings, 192 supported accommodation units and 103 homeless accommodation units,” he added.
The building and construction sector employs more than 20,000 workers in Tasmania.
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