The fate of collapsed construction firm PBS Building may not be known until September, after the second meeting of creditors was adjourned.
Creditors, which are collectively owed about $169 million, met in Canberra on Wednesday afternoon when administrator RSM Australia proposed to adjourn the meeting.
Their application was successful, granting them an additional 45 days to hold the meeting, where the future of the five PBS companies will be decided.
The companies entered voluntary administration on March 7, halting work across 24 active construction projects in the ACT, Queensland and NSW.
In June, RSM Australia has handed down a more than 200-page report outlining the preliminary findings and recommendations for the companies.
It found more than 500 creditors had lodged claims against the companies, totaling about $169 million.
Administrators said the figure could be reduced by up to $50 million, once overlapping claims and payments from project trust accounts were identified.
More time to pursue contract payments
At the time of the report's release, the administrators detailed their reasons for proposing the adjournment.
RSM Australia partner Jonathon Colbran said it would allow more time to pursue outstanding contract payments owed to the PBS companies.
More than $6.8 million worth of construction contract payments owed to the PBS companies had been identified and pursued under state-based security of payment acts, while a further $1.3 million worth of claims were being explored, Mr Colbran said.
Security of payment acts are designed to ensure parties who provide work or services can enforce and recover payments due under construction contracts.
The collapse of PBS Building prompted calls for stronger, nationally consistent security of payment laws.
"To date more than $4.5 million of the identified [security of payment acts] claims have already been determined in PBS' favour," Mr Colbran said.
PBS BUILDING TIMELINE:
- Canberra builder abandons job site amid 'financial strife'
- PBS Building under external administration
- Dozens of home buyers in limbo amid PBS Building collapse
- PBS Building director linked to past $42m business collapse
- Directors linked to Gungahlin Homestead redevelopment
"These SOPA claims have the potential to produce significant recoveries for the companies - and ultimately creditors - at a cost that is far less, and in a manner that is far more efficient, than if these claims were pursued through the courts.
"A company that is in liquidation cannot pursue such claims under these acts.''
The adjournment means a decision about the future of the companies was unlikely to be made until September 6, at the latest.
At the meeting, creditors will decide whether it is in their interests for the PBS companies to execute a deed of company arrangement, whether the administration should end or whether the companies should be wound up.
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