12-05-2025
Australian construction firm collapses leaving $6M in debt
A construction company has collapsed with creditors owed millions of dollars for projects across Victoria, NSW and Queensland. Kenik was wound up in Queensland's Supreme Court earlier this year after another business launched legal action against the Melbourne-based company. Kenik, which had been in the property and construction industry for more than 25 years, now owes more than 200 creditors a combined total of $6.6 million, a new report lodged to the Australian Securities and Investments Commission (ASIC) has revealed.
The document revealed the company's creditors are from five major projects. Kenik had been involved in a series of legal battles in its fight to remain in business. Joinery manufacturer and creditor Barrett Group launched a winding up application against the company in February 2024.
The property group was ordered to pay Kenik $4.2 million in the courts. Taringa has since challenged the decision, and launched proceedings to block Kenik from receiving the money. Taringa also lodged a separate $11 million breach of contract claim.
The Queensland Supreme Court rejected Kenik's request for a stay of the prosecution of the winding up order. The judge found 'Kenik requires all the dominoes to fall in its favor and, even if they did, the creditors would be left waiting even longer'. He ordered the company to be wound up in insolvency in February.
Insolvency experts from Hall Chadwick were appointed as liquidators. The new document revealed Kenik's creditors hailed from five major projects. Creditors in a project in Sunshine, Melbourne, were owed $807,020.
Others for projects in Bringelly, west Sydney, and Yallah, Woollongong, were owed $348,196 and $1.4 million respectively. Creditors for a project in Chuwar, Ipswich were owed $891,083, while Taringa creditors were left at a loss of $2.2million. Court documents showed Kenik had not traded since August 2023, when it lost its building licence. The Sunshine project's creditors included Pulseweld Engineering Services, owed $110,000; Express Interiors, owed $69,536; RAM Locksmiths, owed $58,403; and Scope Cleaning and Maintenance Services, owed $60,391.
Trades on the NSW projects included First Choice Earthworks, owed $90,402; Gasweld Industries, owed $75,795; Rockpave Civil, owed $59,243; AAA Fast Plastering, owed $92,062; Austral Precast, owed $650,000; and City Coast Services, owed $160,362. Queensland trades were Manly Concrete, owed $135,284; Pentacon, owed $300,000; ACP Advance Commercial Projects, owed $90,028; HKH Roofing, owed $43,693; Hyforce Engineering, owed $102,999; Illumin8 Electrical and Communications, owed $148,440; and JKA Commercial Glazing, owed $78,079.
Director Stephen Kennedy informed ASIC Kenik entered liquidation with only $110 in one bank account and $218 in a second account. The company also has two lump sums currently held by the Supreme Court of Queensland, according to the document. They are worth $4.8million and $1.5million. The document revealed Kenik was also owed a total of $1.395 million from debtors on several projects.
