PBS Building debts rise to $63 million as Federal Court grants extension for second creditors' meeting

Debts of five PBS companies have more than doubled since they entered voluntary administration on March 7.

On Tuesday, the Federal Court of Australia granted an extension to the convening period for the second meeting of creditors.

Administrators at RSM Australia now have until June 30 to lodge the final creditors' report and until July 7 to hold the second creditors' meeting, when the future of the companies will be determined.

Court documents show one creditor, SGCH Portfolio Limited, opposed the extension application stating evidence suggested there was "no realistic prospect of any outcome other than the winding up of the business of the PBS Companies".

However Justice John Halley granted the extension for reasons including that it was "not unduly lengthy and is proportionate to the complexities of the PBS Companies".

In his judgement, Justice Halley said "administrators are confronted with relatively large and complex administrations and they need further time to pursue the key tasks ... in order to assess the financial position of the PBS Companies and provide creditors with sufficient information to make an informed decision at the second creditors meeting".

RSM Australia partner Jonathon Colbran said the extension was sought in order to deliver the best outcomes for creditors.

"We are continuing to work around the clock to unpick the highly complex and detailed contractual, legal, insurance, operational and legislative issues associated with investigating the operations of five different companies engaged in multi-million dollar contracts across 82 projects in three different states and territories," he said.

Justice Halley also ruled administrators were not required to maintain separate administration accounts for each of the PBS companies.

He said it would "streamline the administrations and create efficiencies".

TIMELINE:

Administrators confirmed 451 claims had been lodged by creditors in the ACT, NSW and Queensland.

Mr Colbran said this number may change as claims were assessed and verified.

The total amount of these debts was more than $63.6 million, court documents showed.

The documents also noted the majority of the claims were not represented in the PBS companies' books and records and were based on estimated amounts of unliquidated claims that were yet to be confirmed.

Residential and commercial constructions projects came to halt in early March, when the 33-year-old, Canberra-based building company entered administration.

Eleven Canberra projects were impacted, including the Belconnen Markets redevelopment and residential projects the Parks in Red Hill and the Melrose in Woden.

PBS Building were also contracted to build 45 affordable townhouses in Ginninderry, a joint venture between the ACT government and Riverview Group.

At the time of administration, company founder and co-director Ian Carter said in a statement it was a "gut-wrenching decision that we know will impact many lives and livelihoods".

Mr Carter has been linked to a previous $42 million business failure in Canberra.

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