Long term insolvency for Killarnee Civil and Construction

A report by insolvency specialists has showed that a recently collapsed contractor may have been insolvent for 14 months before going into administration.

In September, Killarnee Civil and Concrete Contractors suffered a $22 million dollar collapse which has resulted in a possible deal to sell the company’s assets to fellow contractor Central Systems.

Killarnee was involved in building key infrastructure at Chevron’s Gorgon LNG Project in Western Australia, under a $120 million contract.

The creditors report by Ferrier Hodgson said that Killarnee may have been insolvent as early as June 2013.

Ferrier Hodgson has advised Killarnee’s creditors not to accept a deed of company arrangement proposed by owner Paul Thompson, because it could not confirm a greater return than liquidation.

Killarnee claims to be owed $4.6 million by CB&I and WHBO for work on the Gorgon and TAN Burrup projects.

The CB&I contracted works on Barrow Island included the construction of two 180,000 cubic metre, full containment, concrete, LNG tanks, each one 85 metres in diameter, and four condensate tanks of 60 metres in diameter each.

Killarnee is also involved in a contract dispute with Downer EDI, with each side having filed claims between $4 million and $5.6 million against the other company.

Killarnee was established in 1998 by Paul and Elma Thompson, originally trading under the name Killarnee Formwork.

Image: Killarnee.com

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