Figures do not add up for Perle
PERLE Pty Ltd, the failed construction company owing $1.5 million to local tradesmen, was awarded multi-million dollar contracts yet in receivership has declared just $100,000 in assets.
Company financials released by the creditors’ committee indicate Perle has $6.5 million to offer creditors but has debts to the tune of $9.7 million – a shortfall of $3.3 million.
For Coffs Harbour’s Burnett Plumbing, which is owed $300,000 in unpaid work on three local NSW Housing projects, these are the telling figures highlighting the company ‘was well and truly out of its depth’.
Ernie Burnett said the figures were revealed by administrators for Perle Pty Ltd at a meeting of creditors on Friday.
“If the Housing Department says they have completed extensive examinations of this company how come (Perle) has only two Mercedes Benz’s worth $104,372 in fixed assets,” Mr Burnett said. “It doesn’t seem enough to back 20 million worth of contracts.
“The problem is we look like getting much less than the actual debt we are owed and it is possible to be as low as five cents in the dollar after a long, drawn out process.
“This doesn’t seem fair because if these jobs were for anyone else (other than government) the building would be sold and administrators would be able to re-coup more money with the sale.
“However, as this is government owned the buildings won’t be sold and so the sub contractors are screwed over.”
While Burnett Plumbing says it remains financially stable, other local sub-contractors are not.
Some creditors have redrawn on their homes following the company’s collapse.
One local window manufacturer stated at the meeting they have approximately $200,000 in goods to be installed on the projects.
The full extent of Perle’s financial woes has had an impact statewide.
Along with NSW Housing projects in West High Street, Azalea Avenue and Harbour Drive, it also has stalled government stimulus package projects in Sydney, the Illawarra and Hunter Valley.