The dull ache caused by the commencement of DoCA amendment proceedings in the Supreme Court of Queensland is threatening to become a thumping migraine for Deloitte partner David Orr and his fellow Probuild deed administrators (DA).
This week Probuild creditors received an update from Orr’s colleague and co-DA Sal Algeri advising that in the wake of their June 1 circular revealing that proceedings were commenced in March by Destination Brisbane Consortium (DBC) seeking to amend the DoCA, another dissatisfied creditor had come out of the woodwork.
DBC’s complaint is that if the DoCA effectuates in its current form it will extinguish a historical claim DBC has against Probuild Construction (Queensland) Pty Ltd (PCQ) in respect of work on the Queens Wharf Development in Brisbane in 2020.
At the heart of DBC’s complaint is that the DoCA could eliminate DBC’s ability to claim against an insurance policy covering QPC.
The new claim comes from what Algeria describes as the Werribee Claimant.
“Since the 1 June Circular, the deed administrators have received correspondence from both the
solicitors for another creditor (Werribee Claimant) with a potentially insured claim against the Company. (the Werribee Claim), and the solicitors for WBHO Construction (Pty) Ltd, the DOCA proponent (Proponent),” Algeri said.
“Both the Werribee Claimant and the Proponent now wish to be heard in relation to the Queensland Proceedings.”
DBC had wished to have its case heard on June 16 but sine Werribee emerged the parties have come together to let the issues be fully ventilated.
To that end the DAs have invited creditors who think the DoCA could adversely affect a potentially insured claim to contact them and the hearing has been pushed out to September 1.
That gives Algeri and co plenty of time to swallow their Endone and have a lie down in a darkened room.
Extinguishing ability to claim against insurance has historically been a reasons to apply to set aside a DOCA or have it amended