An insolvent Ballarat builder has gone under owing $340,000 to creditors.
CSM Homes went into liquidation on July 3, more than six months after the business ceased trading in January of this year, liquidator Leon Lee said.
The insolvency notice issued by Australian Securities and Investments Commission comes after a bad six months in Ballarat’s construction industry with the collapse of Geelong-based builder Watersun Homes in March this year.
This follows revelations another Ballarat builder has gone to ground owing tens of thousands to homeowners and tradespeople. The builder, who The Courier has chosen not to name for legal reasons, remains solvent as of Wednesday.
All he’s told me is the company (CSM Homes) has no assets.- Queensland-based liquidator Leon Lee
As part of his investigation Mr Lee will test Mr McRobert’s claim about his assets and determine whether the business traded while insolvent.
“All he’s told me is the company has no assets. Building companies, a lot of the time they don’t have a lot of physical assets. Something has happened to have the company be in this position so that’s what I need to look at,” Mr Lee said.
“Normally if a director says the company doesn’t have any assets I need to test that.
“I have to get all the records and find out where the money went, if the company was receiving money from customers I have to find out ‘where did that money go?’.”
CSM Homes director Chris McRoberts claimed the company had still been working on houses and making payments to local creditors until the end of last financial year. He said he had the best interest of clients in mind and had given the liquidator statutory information, with more to be provided in the coming week. Mr McRoberts confirmed the business’ creditors were owed $340,000.
Creditors can contact Leon Lee at SM Solvency Accountants on 07 3308 4911.