No hope for Procorp, creditors to be told

ADMINISTRATORS appointed to failed Thurgoona-based builder Procorp have recommended the company be liquidated after discovering it collapsed with less than $1000 in the bank.

The Procorp group of companies was placed into administration last month with 12 homes in the Albury unfinished.

A meeting of creditors to be held in Sydney on Friday will deal with a recommendation to liquidate the company with creditors expected to be left largely empty-handed.

The proceeds of one of Procorp’s major assets, an investment property in Thurgoona, have already been used to pay off a debt to the Commonwealth Bank.

The proceeds from the sale, settled on October 26, amounted to $277,971.

The creditors’ report prepared by Hall Chadwick Chartered Accountants shows Procorp’s total liabilities have not yet been fully determined.

It had assets of nearly $42,000, mainly consisting of sales commissions, when it went into administration.

But unsecured creditors claims amount to $36,810 at present with the largest amount being $12,810 owed to the Australian Taxation Office.

More claims from creditors including suppliers were expected to be received by the administrators.

Procorp traded under company names, Holmwood Builders, Narellan and District Real Estate, Procorp System and Paramount Finance Neutral Bay.

Michael Everard was the sole director and company secretary at the time of the collapse.

The company reported a loss of $80,943 as at September this year after operating at a loss of $251,615 for the 2010-11 financial year and $4126 in 2011-12.

More than $750,000 was ploughed into the business by related entities Procorp Systems and Holmwood Builders in November last year in order to keep the business afloat.

Mr Everard also lent the company $11,133 at the same time.

The administrators highlighted inadequate cash flow and trading losses for the company’s demise.

Friday’s meeting will be told attempts to sell the company as a going concern by administrators have so far failed.

Smartphone
Tablet - Narrow
Tablet - Wide
Desktop