THE liquidator probing the failed Lavington Sportsground redevelopment contractor has raised the possibility the company may have been trading insolvently before being awarded the job by Albury Council.
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Liquidator Anne Marie Barley this week handed down a report into the collapse of Depan Group which won the contract for first stage works at Lavington in June 2017.
Her report showed the company had less than $650 in the bank at the time of its demise.
"It is my opinion that the company may have traded whilst insolvent from as early as July 2016," Ms Barley reported.
"However, an action for insolvent trading would only be brought against a director by a liquidator if a benefit would accrue to creditors from doing so."
Documents show Depan's sole director is Ana Coward with her partner Robert House previously identified as the face of the firm.
Ms Barley also confirmed Mr House was declared bankrupt on August 10, 2016.
Albury Council general manager Frank Zaknich said it undertook due diligence at the time of the tender process by way of an internal review of Depan and, given the short period the company had been trading, an independent review of its financier, FIFO Capital, through Dun & Bradstreet.
"There was no indication that Depan was trading insolvent at that point in time," he said.
Ms Barley again cast doubt on sub-contractors out of pocket on the Lavington Sportsground project will see any money refunded.
The total amount of unsecured creditor claims including those who worked on Lavington is estimated at $875,094.
"I am unable to provide a dividend estimate of any certainty," she said.
The liquidator also attributed Depan Group's failure to inadequate cash flow, trading losses, heavy reliance on borrowings and debtor funding to sustain the business, a substantial debt to the Australian Taxation Office and breach of contracts and multiple defect works by the company.
The ATO is also owed $102,274 with a further $94,107 in outstanding employee entitlements with Mr House listed as one of three Depan Group employees.
As a precaution and in accordance with work, health and safety regulations, an area along the northern perimeter fence, near the coaches boxes, has been fenced off and signage erected.
The bonded asbestos material is classified as "Non-Friable" and considered low risk.
