Failed companies leave Hunter building subcontractors out of pocket

Liquidator Steven Gladman, of Hall Chadwick, was appointed last month after two companies, Blissful Development and Blissful Building Procurements, failed.

According to documents filed with the Australian Securities and Investments Commission, more than 35 unsecured subcontractors and suppliers, many from the Hunter, are believed to be owed more than $500,000. 

One Hunter supplier is owed almost $80,000 and a subcontractor more than $120,000.

There is little chance the unsecured creditors will recover any losses with the sole director of both companies, Bonita Dawes, of Belfield, Sydney, declaring the companies have no assets.

Subcontractors told the Newcastle Herald that there had been problems getting paid for some time.

It’s understood the two companies were involved in a number of residential property developments around the Hunter, including projects in Jesmond and Warners Bay.

Both companies had a number of director and shareholder changes in the months before being placed in liquidation in April.

Ms Dawes was appointed director of Blissful Building Procurements on February 11.

The day before her appointment, Rakesh Reddy Pareddy, of Granville, was appointed as a director of the company, but resigned the same day.

The day before Mr Pareddy was appointed, Daniel Roberts, of Wallsend, ceased to be a director after five months running the company.

In the case of Blissful Developments, that changed it’s name to its Australian company number ACN 603 550 867 Pty Ltd the month before it was placed in liquidation, Ms Dawes signed on as a director in October last year.

Former directors, who all resigned just weeks before the company was placed in liquidation, included Venkatrenga Gupta Srinivasan, of India, Harish Gangadharappa,of Turella, Sydney and Mr Pareddy, of Granville, and Mr Roberts, whose address was listed this time as Redhead.

Blissful Building Procurements was listed as being run from Nelson St, Wallsend, and Blissful Developments from Honeysuckle Dr, Newcastle.

The liquidator, Mr Gladman, has filed with ASIC what is called a “disclaimer of onerous property” form, waiving Blissful Developments’ claim to a 2016 BMW X1 wagon and 2016 BMW M2 two-door coupe.

“The property is the property of the company and consists of property where it is reasonable to expect the costs, charges and expenses that would be incurred in realising the property would exceed the proceeds of realising the property,” the form reads.