ONE of the Hunter’s best-known homegrown builders, Martin Building Services, has folded with debts of almost $10 million.
The company, which began in Maitland almost 20 years ago, was placed in the hands of insolvency experts in December at the request of director and owner Denis Martin.
James Shaw, a partner of Shaw Gidley Insolvency Reconstruction, was appointed liquidator on December 14.
Mr Shaw said early investigations indicated employees would be paid and the remaining assets would go to the company’s banker, which has security over the remaining assets.
“It is unlikely that there will be anything for creditors,” he said.
Australian Securities and Investment Commission documents reveal the company has unsecured debts of $4.9 million and owes $4.2 million to the bank.
Assets total $3.9 million, including land, debtors and loans owed to the company. The shortfall is estimated to be $5.5 million.
A creditor, who asked not to be named, said there were a “host of small Hunter businesses” who would be badly hurt in the collapse.
“It was a good locally owned and grown company that always paid on time, but the flow on from this will be difficult for the little husband-and-wife creditors to carry,” he said.
The largest unsecured debt is $402,255 owed to HD Projects in Sydney, followed by $220,197 owed to Hunter-based Jeffkins Group.
Martin Project Homes continues to trade.