National Buildplan Group given new lease of life after vote
Failed construction company National Buildplan Group is set to be resurrected after creditors voted to establish a deed of company arrangement last week.
The move has prevented the NSW-based builder entering liquidation despite holding debts estimated at more than $60 million to employees and unsecured creditors.
The vote at Thursday's creditors' meeting saw 231 in favour of the arrangement, 49 for liquidation and seven abstentions.
Under its terms, control of the company will be returned to director William Wheeler. He is required to realise $5.125 million to pay priority creditors - namely employees - administration costs, and a "minimum" dividend for unsecured creditors.
The money will be obtained from a profit share from two ongoing construction contracts and debt recoveries, as well as a director's contribution of $600,000, a $300,000 payment for administration costs, and the sale of $190,000 of plant and equipment to Mr Wheeler.
Administrators BRI Ferrier estimate unsecured creditors, owed up to $58 million, will likely receive only 0.08¢ to 5.62¢ in the dollar.
The vote was controversial, with some creditors upset Mr Wheeler sent out completed proxy votes in his favour to creditors before the meeting. Mr Wheeler's pay of $6000 a week provided by BRI since the collapse was also a source of anger.