A building company that has a $40 million turnover and a Beresfield office and that is currently working on 31 new home projects in the Hunter and northern NSW has been placed in voluntary administration.
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Yesterday, Hall Chadwick was appointed administrator of the Procorp group of companies, which has 50 employees, 500 creditors and other offices in Sydney, the South Coast and Albury.
Hall Chadwick partner Domenic Calabretta said yesterday that 31 of the 90 homes Procorp is now building came under its Beresfield branch.
None of the four offices listed on Procorp’s website responded to phone calls from the Herald yesterday.
Hall Chadwick is conducting an ‘‘urgent assessment’’ of Procorp’s business affairs with a view to releasing a report to creditors in about a week.
The administrator was trying to work out ‘‘who are the creditors, customers and employees’’.
‘‘Further detailed information will be provided to creditors in the next few weeks regarding the administrators’ recommendation as to the future of Procorp,’’ Mr Calabretta said.
Addressing a breakfast held by the Callaghan Institute and attended by key industry leaders in Newcastle last week, Mr Calabretta said Hall Chadwick was seeing a continuing trend towards corporate insolvencies.
The Australian and Securities & Investment Commission statistics had so far this year recorded the most insolvency appointments since the 2008 Global Financial Crisis, he said.
And NSW topped the list of Australian states for insolvency appointments this year, with 45 per cent, Mr Calabretta said.
The construction industry had been worst hit, with key players such as Kell & Rigby and Southern Cross collapsing.
This would lead to further pain for service providers and subcontractors who had lost big sums of money in large corporate failures, Mr Calabretta said.
Consumers and anyone who may be affected by Procorp’s current situation can call the NSW Fair Trading hotline on 133220.
