ADMINISTRATORS for local company CRK Holdings have held the first meeting of creditors, as documents reveal the company went into voluntary administration owing $22.4 million to unsecured investors.
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The first meeting of creditors was held via Zoom Tuesday afternoon, with the aim of providing information to creditors about the administration process.
The company, which owns the land for the development application-approved Riverside Apartments at 11 Sturt Street, went into voluntary administration on August 6 and appointed Chris Chamberlain of Chamberlains SBR as administrator.
Documents lodged with ASIC show CRK Holdings currently owes $22.4 million in unsecured investor loans and a further $6.1 million to financial institutions.
Mr Chamberlain said he had established a committee of investors to work on valuing the company's assets and looking at all options for returning as much money as possible to investors, a process he expected would take three to five weeks.
He said the company's major assets included the Sturt Street land and a number of properties along the main street, and he was "exploring all options and trying to value-add where possible" with the view of returning the greatest funds to investors.
"My job is to get them back as much money as possible," he said. "My capacity to do that is by virtue of being able to keep things moving on in an orderly fashion."
He said in the midst of the coronavirus pandemic all options considered would likely be over a 12 to 18 month period to get the best value out of any assets sold.
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Documents lodged with ASIC show CRK Holdings director Paul Kahlefeldt met with Mr Chamberlain on July 6 seeking advice, and advised him the company was experiencing cash flow difficulties.
Mr Kahlefeldt attributed the challenges to the inability to progress development on the Riverside Apartments and a loss of commercial rental revenue, both in part due to the impacts of the coronavirus pandemic.
The $21 million Riverside development was approved by Wagga City Council in early 2020, with sales for the 67 residential units and three commercial spaces currently progressing.
Creditors will be presented with a range of options and their likely outcomes at a second creditors meeting in the next few weeks.
