Tradie to keep 12k payout

LIQUIDATORS have backed down and retracted their demand for a Bundaberg tradesman to return thousands of dollars he was paid by the collapsed builder Coral Coast Homes earlier this year.
Bricklayer Kevin Bragg was shocked to receive a bill for more than $12,000 in September this year, when liquidators SV Partners determined he should return the money.
Citing legislation from the Corporations Act, SV Partners wrote that Mr Bragg “was aware or should have been aware that the company was insolvent” when his payments were made from January to March this year — despite the fact it was still trading when the payments were made, and did not go into liquidation until June.
The liquidators supplied a history of transactions between the failed builder and Mr Bragg’s bricklaying business Brickfred, which suggested that Coral Coast Homes may have been struggling financially as early as September last year.
They demanded that the money be returned, as it gave Brickfred a preference over other creditors, who may still see nothing of the money they have lost.
But luckily for Mr Bragg, SV Partners has eased its stance, and scrapped the repayment after media attention to the issue.
“They called me and asked me to write a letter detailing everything that happened with Coral Coast Homes, and they might be able to arrange something,” Mr Bragg said.
Last week, he had another telephone call saying the matter had been dropped.
Mr Bragg said he was delighted to hear the news, but said he should never have been asked to repay the money, which he was awarded by the Commercial and Consumer Tribunal in March, after Coral Coast Homes failed to pay him for work done before September last year.
SV Partners director David Stimpson said his investigations concluded the company was insolvent in January.
“Our investigations as to whether it was trading insolvently prior to that date are continuing,” Mr Stimpson said.
He said he had passed on a report to Australian Securities and Investments Commission (ASIC), stating that the company was trading insolvent, and was working on another report with further information.
He said Mr Bragg’s defence against the liquidator’s claim of an “unfair preference payment” was valid, and he would not be pursued for the money.
“At this stage we have not identified any other unfair preferences,” Mr Stimpson said.

SV Partners bid to snatch tradie's cash !

A BUNDABERG tradie, who forced Coral Coast Homes to pay his bills when he took the building company to a tribunal, has been ordered by the company's liquidators to return the cash.

At first Kevin Bragg (pictured, right) thought a demand to hand back $12,000 was just a joke - but soon it became obvious that the letter from liquidator SV Partners was no laughing matter.
Mr Bragg, director of bricklaying company Brickfred, went to the Commercial and Consumer Tribunal in March to recover more than $12,000 in unpaid bills from Coral Coast Homes.
The ruling was made in the nick of time - Mr Bragg had received nearly all of his money back by the time the company went under in June, owing more than $1 million to about 100 creditors.
“I thought I was one of the lucky ones, that I got in just in time,” Mr Bragg said.
But that win turned sour when Coral Coast Homes liquidator SV Partners demanded all of the money back - saying Mr Bragg should never have been paid the cash he was owed in the first place.
“They're saying I should have known that (Coral Coast Homes) was insolvent, so I have to pay back the money,” Mr Bragg said.

Coral Coast Homes victim hurt again by latest demands to pay up!!

Rob Messenger MP
Member for Burnett  

(MEDIA RELEASE)

A local building business owner affected by the collapse of Coral Coast Homes has been told by the company’s newly appointed Liquidator ...... to return money which was previously awarded by a tribunal to the former Coral Coast Homes customer.

Member for Burnett Rob Messenger was contacted by Kevin Bragg, owner/Director of Bundaberg business ‘Brickfred Pty Ltd’, who received a letter from Coral Coast Homes liquidators, demanding that he pay $12,000.

“The Liquidators are now claiming that I should have known they (Coral Coast Homes) were trading insolvent, but had I have known that, why would I be wasting money with the business?” Mr Bragg said.

“We were sick of not being paid and forced go through court process and now liquidators turn around and say you don’t deserve that money - hand it back !?

“I’ve done everything by the book… I’m very disappointed to receive the letter like that.

“I’ve gone through every legal process and followed to the letter what the solicitor was saying and what the tribunal’s findings recommended,” he said.                                                                     

“Mr Bragg is obviously extremely disappointed to receive the liquidator’s letter and has approached me for help,” said Mr Messenger.

“I’ll be writing to the Attorney-General and Minister responsible for the BSA on behalf of Mr Bragg, asking that the government investigate the Liquidator’s letter of demand and advise if it is a reasonable and legal demand,” he said.

Mr Messenger is also concerned that there may be other victims of the Coral Coast Homes Crisis who have received a similar letter of demand from liquidators and is urging anyone in the same predicament as Mr Bragg to contact his office for assistance.

Media contact: Rob Messenger 0407 904 134