PBS administrators update to creditors

About 180 PBS creditors attended a meeting in Canberra and online yesterday afternoon to receive an update on the progress of the administration of five PBS Building companies operating in ACT, NSW and Queensland.

RSM Australia Partners Jonathon Colbran, Richard Stone and Mitchell Herrett took control of the companies after they were appointed Joint and Several Administrators by the PBS Board of Directors on 7 March 2023.

Mr Colbran told the first creditor’s meeting that the principals of seven of the 24 PBS project sites, that were in an active phase of construction, had taken steps to recommence work. Mr Colbran states:

“This includes five of the eight active projects in NSW, one of the 11 ACT projects and one of the five active Queensland projects,’’

“The 17 other projects that were also in various stages of construction are also advancing towards a resolution.”

A further 56 projects that PBS companies had been contracted to deliver have been completed and are now in a defect liability period.

Initial investigations by the Administrators identified more than 1,000 secured and unsecured creditors were owed approximately $25 million. This did not include PBS’s 180 employees who were made redundant and were paid out their entitlements in full before the Administrators were appointed.

Mr Colbran told the creditor’s meeting the estimate of money owing had risen to about $40 million and would continue changing throughout the process while the Administrators assessed the merits of the incoming claims. Mr Colbran also said:

“To date 374 claims have been lodged by creditors – 177 in the ACT, 131 in NSW and 66 in Queensland. This number is also expected to rise and fall until the Administrators are able to verify the claims.’’

“Today’s meeting was the first of two that will be held during the administration process with the second being the one where creditors will determine the future of the PBS companies."

“At the second meeting creditors will vote on whether to put the companies into liquidation or enter into a Deed of Company Arrangement (DOCA). A DOCA is a binding agreement between a company and its creditors that sets out how the affairs and assets of the company will be dealt with.’’

At this stage, RSM Australia Partners are working towards delivering a detailed creditor’s report on the outcome of their investigations into PBS’s construction entities, including recommendations, by about mid-April. However due to the complexity of the administration this timeframe could change.

Mr Colbran said the report would include findings of RSM’s investigations into project trust accounts in Queensland and NSW. Mr Colbran also says:

“These trust accounts were frozen from the date of the appointment of the Administrators. We are now identifying which projects the accounts relate to, which creditors may have rights to the funds in these accounts and then reconciling these funds."

“The Queensland Building and Construction Commission (QBCC) will concurrently undertake a compliance audit of the Queensland project trust accounts.”

Creditors affected by the administration of the PBS construction companies should contact RSM via email at [email protected] or on (02) 6217 0228.

Jonathon Colbran, Richard Stone, and Mitchell Herrett

Joint and Several Administrators

RSM Australia Partners

PBS Building Pty Limited

PBS Building (ACT) Pty Limited

PBS Building (NSW) Pty Limited

PBS Building (QLD) Pty Limited

PBS Management Company Pty Ltd

(All Administrators Appointed)

Collectively trading as PBS Building ACT, NSW and QLD

About RSM Australia:

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