Company linked to builder of Sydney’s Opal Tower to be liquidated
A company linked to the builder of Sydney’s troubled Opal Tower will be liquidated, with creditors seeking as much as $36 million for a series of buildings in the city plagued by faults.
The company, formerly named Icon Construction Australia (NSW) Pty Ltd, was placed in voluntary administration in November after slugging it out with homeowners in a series of defect ridden buildings the company built.
An administrator’s report by O’Brien Palmer was critical of directors of the failed unit, Nick Brown and Julian Doyle, for failing to provide information around insurance for the defect riddled Icon sites and dragging their feet on a proposed deed of company arrangement.
Mr Doyle worked at Icon until last August and Mr Brown handed over as chief executive last April.
“Correspondence was received from Mr Brown advising that a further revised DOCA proposal would be received that day. Such a proposal was not forthcoming,” the report said.
The homeowners are now left with trying to recover what little remains in the Icon corporate entity and making a claim against the insurers of the building.
But the liquidators report notes actually determining the nature of the insurance for the Icon buildings from brokers Marsh has proven “unsuccessful”.
“Marsh indicated that it could not make the documentation available on the basis that the insurer have not provided consent to do so.”
“We also asked the directors to provide the documentation. To date, they have failed to do so.”
Problems with the balustrades at Icon’s Otto building’s in Rosebery helped drag down the business, with owners corporations submitting claims for almost $18 million in rectification works.
Homeowners at the Otto sites have been warned that no one is allowed on the balconies.
But Icon argues fixing the defective balconies would only cost $2.3 million.
The Otto owners have also taken aim at Sydney Christian Life Centre, a property development arm of the Hillsong church.
Hillsong’s property development arm had entered into a contract with another company that hired Icon Construction Australia (NSW) to build the towers.
However, Icon has stressed the company entering liquidation is not related to, owned, controlled or a subsidiary of Icon.
An Icon spokesman said although the business had no obligation to remedy the situation at the failed business in NSW it was “committed to working constructively with all stakeholders on its projects in the interests of residents and owners”.
“While there is no legal obligation, we continue to work with the Otto Owners’ Corporation and other stakeholders and are confident we can resolve the issue,” he said.
“Our track record demonstrates our commitment to working proactively to expedite works in a safe and cooperative manner.”
The directors of the Icon corporate entity had proposed a plan to pay for fixes to the buildings, but it also required Otto owners to stump up as much as $200,000.
But at a meeting on February 15 creditors voted to reject the deed of DOCA and the company passed into liquidation.
The Opal Tower. Picture: Getty
The coffers are mostly empty at the failed Icon entity, holding only $195,762 in the bank and owing $175,625.
There is also a potential claim for a $416,000 claim against Icon for defective building works.
However, Icon is also a creditor for the failed company for $1.06 million and would likely seek to claim a set-off.
Icon has been suing Sydney Balustrade and Aleksander Veselinovic in court over the issue at the Otto towers.
The liquidation of the Icon entity will not affect this legal action against Sydney Balustrades.
This article originally appeared on www.theaustralian.com.au/property
