Director aware construction firm insolvent months before collapse, liquidator's report claims

Thursday, 09 November 2017, 02:33:13 AM. The liquidator of a collapsed construction giant finds evidence it says indicates the company's director and founder knowingly traded while insolvent, according to a confidential report obtained by the ABC.
Photo: Craig Walton has previously denied trading while insolvent. (Facebook) The liquidator of a collapsed construction giant has found evidence it says indicates the company's director and founder knowingly traded while insolvent, according to a confidential report obtained by the ABC. Walton Construction operated in Victoria, Queensland and New South Wales, and was placed into voluntary administration in October 2013 owing tens of millions of dollars to more than 1,000 subcontractors and suppliers, including plumbers and landscapers. The liquidator says the Queensland branch of the company, Walton Construction (QLD) Pty Ltd, folded owing more than $18 million to subcontractors and suppliers. The companies' director, Craig Walton, previously denied trading while insolvent and defended using the profitable Queensland arm of the company to prop up the faltering NSW and Victorian operations. The ABC has obtained a confidential liquidator report from July 2016 relating to the Queensland branch that details alleged breaches of director duties by Mr Walton. These include claims in the report for the state's construction watchdog, the Queensland Building and Construction Commission (QBCC), that Mr Walton used company money to pay bank debts that he had personally guaranteed, while the company continued to rack up debts to subcontractors. Liquidator Grant Thornton submitted the report after a Federal Court public examination that began at the end of 2015. An ABC report raised...Read more
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