Administrators edge closer to selling parts of Probuild, pay back fees

The administrators of collapsed building giant Probuild, edging closer to a sale of parts of the business, have refunded $171,700 in fees they were paid by the builder before it slid into administration.

More than $5 billion worth of major building projects around Australia are in limbo after Probuild collapsed into administration on February 24 owing 2300 creditors and 786 employees millions of dollars.

The company’s sudden demise triggered a frantic search for firms willing to take over its business and financial stress and job uncertainty for hundreds of employees, contractors and tradies working on its 18 large-scale projects.

Responding to a query from a subcontractor at the first meeting of creditors on Friday, global consulting firm Deloitte said it had paid back fees it earned in the six months prior to Probuild’s collapse to avoid any “potential perception” it may be conflicted.

“What I can confirm is that Deloitte Australia did receive fees of $171,600 in the six months prior to commencement of the group’s administration,” administrator Jason Tracy told creditors.

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“So as to remove any potential perception that Deloitte Australia may be conflicted as a consequence of having received those payments, we made the decision to refund those monies to the group,” he said.

Deloitte said it received significant interest from buyers for the two main parts of the business, Probuild and WBHO Infrastructure, it advertised for sale.

“We received a significant spread of interest across both businesses, from those looking to acquire the whole business right through to individual contracts,” Mr Tracy said.