Concrete construction company collapses in Batesford leaving workers out of pocket
- MMD Concrete Construction ended in September
- Liquidator recently issued a report
- The staff who owe unpaid duties may not get a cent
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Former staff at a concrete construction company that recently went bankrupt have suffered a devastating blow days after Christmas.
MMD Concrete Construction Pty Ltd collapsed in September and forensic accounting firm Worrells was appointed to liquidate the company.
The company based in Batesford near Geelong, south-west of Melbourne, owes at least half a million in unpaid taxes and workers' rights, according to a December 18 receiver's report.
The report said MMD owed employees $127,832 in unpaid pension and another $112,613 in wages, leave and retrenchments.
Former staff may not see a cent of their unpaid entitlements following the collapse of MMD Concrete Construction Pty Ltd (stock image by tradies)
The company also had tax debt of at least $230,000 accrued over the past four years, which MMD itself said could amount to $345,322. Geelong Advertiser reported.
Trustee Scott Andersen admitted that employees may never see a cent of what they owe despite being on the list of priority creditors to be paid first.
The report also shows that MMD Concrete Construction may have been insolvent for the past two and a half years.
“My preliminary assessment is that the company is likely to be insolvent as of June 30, 2021,” Mr. Andersen wrote.
MMD director Nick Burnett is owed $678,922, while another company of which Mr Burnett is also a director is owed $103,621, according to the administrator's estimate.
MMD Concrete Construction Pty Ltd also left behind a significant tax debt. Pictured is one of the company's projects
MMD Concrete Construction Pty Ltd was dissolved on September 27. The photo shows company director Nick Burnett
Mr Burnett cited the Covid-19 pandemic and “increasing tax debt” when asked to explain the company's financial problems to administrators, the report said.
The company was registered in October 2017.
The Facebook page remains online with the most recent photo of a project from July 14.
“Here at MMD concrete we work on large and small jobs, we specialize in commercial concrete work,” the page says.
The collapse is another major blow to the construction industry hit by high interest rates, rising material costs and persistent labor shortages.
It is estimated that 2,349 construction companies will have gone bankrupt in 2023, with more to follow in 2024.
Nearly 800 construction companies were insolvent in the September quarter alone, according to new data from business regulator ASIC.
According to the liquidator's report, MMD Concrete Construction (project pictured) may have been insolvent since June 2021