Rescon Builders Pty Ltd appointed Christopher Darin of Worrells as administrator on 30 June 2023 and subsequently Liquidator on 4 August 2023, when the creditors voted against a proposal for Deed of Company arrangement and the company was placed into liquidation.
Rescon Builders Pty Ltd previously operated a granny flat construction business which commenced in 2012 in New South Wales under its trading name of Rescon Granny Flats.
Rescon Builders Pty Ltd operations ceased in June 2023, with approximately eight full-time employees terminated prior to Christopher Darin’s appointment as administrator.
The director advised that the company experienced financial difficulties due to COVID-19 pandemic and the severe extreme weather events in NSW in the same period. The financial difficulties were further compounded by the increased costs in construction industry. Following an unsuccessful attempt to downsize the business, the Director decided that the business was no longer viable to continue trading.
Worrells advises that more than 50 customers have been severely impacted by the Rescon’s liquidation and have contacted Worrells to lodge a claim and seek documentation relating to their project.
At present claims against the Rescon total in excess of $3.9 million with realisable assets of less than $100,000.
Worrells is also urging former employees who are owed entitlements to submit their claims for outstanding entitlements via www.worrells.net.au.
If insufficient funds are recovered in the liquidation, the government’s Fair Entitlement Guarantee (FEG) Scheme may assist employees with certain outstanding entitlements. Worrells advises that in that scenario, the team at Worrells will assist to calculate and verify their entitlements.
Creditors and stakeholders with information that may assist the liquidator’s investigations are asked to email jessie.low@worrells.net.au.
Mr Darin said, “My team and I will be reporting to creditors in due course as to any actions available to the liquidator that may yield a return to creditors.”
Worrells advises it will continue to give updates as they become available.
Worrells is the leading brand of insolvency and turnaround teams. With local teams in Qld, NSW/ACT, Vic, and WA, Worrells also has the support of a national brand. Its teams have helped people and businesses recover from difficult financial situations and assisted the creditors attached for over 50 years.
-ENDS-
Contact:
Jessie Low
Business Analyst, Worrells Sydney
jessie.low@worrells.net.au