Diploma Groups main construction arm may have been insolvent for at least 11 months before the builder-developers $60 million collapse, according to administrators.
Accounting firm Grant Thornton is recommending Diplomas creditors vote to liquidate the group and two subsidiaries instead of backing a rescue plan of controlling shareholders the Di Latte family.
Diploma was put in the hands of receivers and administrators in December leaving hundreds of subcontractors, suppliers and former employees chasing payment.
The administrators report to creditors said preliminary investigations indicated Diploma Construction (WA) which carries the lions share of the debt was likely to have been insolvent from at least January 2016.
The report said the…
Read the full article at: https://thewest.com.au/business/commercial-property/diploma-trading-while-insolvent-for-a-year-ng-b88458704z
