Twist after Aussie property developer collapsed leaving $1.5billion worth of construction unfinished
An Aussie property giant has been thrown a lifeline after creditors agreed to take a substantial cut to save them from liquidation.
Creditors have signed off on a rescue deal with Melbourne-based property developer Bensons Property Group (BPG), settling for half of the more than $811million they were owed.
BPG collapsed in December with 1,300 new homes worth a staggering $1.5billion still under construction.
Among those owed money were builders, other tradies, investors and a number of state government revenue offices.
On Friday, creditors accepted a rescue deal put forward by the company in which the family founders of the group would tip in close to $480million over the next three years.
Craig Shepard and Sebastian Ham, of KordaMentha, were announced late last year as voluntary administrators of the business.
KordaMentha recommended creditors take the rescue deal, saying they would secure $414million as opposed to just $625,772 paid to employees if the company was liquidated.
On Friday, BPG said the decision was 'near unanimous' with 98 per cent of creditors voting in favour of the deal.
Bensons Property Group has been saved from liquidation (a BPG worksite is pictured)
Bensons was founded in 1994 by multi-millionaire winery owner Elias Jreissati (pictured)
A BPG spokesperson said the company remained committed to its $1.5billion project development pipeline.
'We understand the responsibility that comes with this, and we will work tirelessly to fulfil it,' the spokesperson said.
'We are deeply humbled by the immense trust and support of our employees, trade creditors, project partners and investors throughout this challenging time.
'We recognise the opportunity we have been given, and we are determined to deliver for those who have placed their trust in us.'
Administrator Mr Shepard revealed that the company may have been insolvent as early as July 2023.
'Our preliminary investigations suggest the company exhibited indicators of insolvency, and may have been insolvent, as early as 1 July 2023 and as late as 30 June 2024,' he said in a report lodged with the corporate regulator.
Mr Shepard said BPG directors sought 'safe harbour' protection in 2023, theoretically giving them protection from future investigations if the company was to enter liquidation.
Safe harbour is a form of protection under the Corporations Act that guards directors from personal liability during insolvency as long as they are taking steps to improve the company's financial situation.
Bensons Property Group was behind Chevron One, the $485million residential tower on Queensland's Gold Coast (pictured)
There is no suggestion of wrongdoing on the part of BPG directors.
BPG, founded in 1994 by multi-millionaire winery owner Elias Jreissati, is building 740 apartments across Melbourne's suburbs, worth an estimated $452million.
The Aussie home builder was behind Chevron One, the iconic $485million residential tower on Queensland's Gold Coast.
It also built Montpelier House in Hobart, with 21 luxury residences worth up to $9.28million each.
The KordaMentha report revealed the company's revenue plummeted from $243million in 2019 to just $4million by December 2024.
The company entered administration with $163,672 in the bank and in December Bensons CEO Rick Curtis said the voluntary administration was 'not an easy decision'.
Strains on the sector including the Covid pandemic and the rising material costs has led to the collapse of other Aussie home builders, including Porter Davis Homes last year.
