Barely a week after warning Probuild creditors that legal proceedings will delay payment of any dividend, the four appointees of the DoCAlypse have again ridden forth bearing tidings of woe.
“I tentatively suggest a return of not more than 10c in the dollar might be paid before the end of 2025. I emphasise this is a crude estimate only and the actual outcome may be materially different.” Deloitte partner Mattew Donnelly.
In a circular dated June 9 and addressed to the beneficiaries of the WBHOI Creditors’ Trust, trustee and Probuild Group deed administrator Matthew Donnelly told trust beneficiaries that they might, depending on the outcome of various matters the conclusions of which remain shrouded in uncertainty, get a return of less than 10 pert cent, possibly as soon as the year after next.
The missive’s message was heavily qualified. Whilst Donnelly reported receipts of more than $49 million, matters like the dispute with Perth-based engineering firm Mondium, which awarded WBHO Infrastructure (WBHOI) a $48.3 million sub-contract in 2020 remain unresolved and could still end up in expensive litigation.
Unexpired defect liability periods were also holding up resolution of amounts outstanding on various construction bonds, Donnelly told the beneficiaries.
On top of that, myriad claims on the trust remained uncrystallised or contingent at this point and no formal adjudication of the claims has yet taken place.
It was all ominous-sounding stuff which paved the way for Donnelly’s warning, no doubt intended to dampen expectations in regard to the size of any distribution and its imminence.
“Until the above is clearer I am not able to provide an estimate of the timing and quantum of a return to beneficiaries,” he said.
“I tentatively suggest a return of not more than 10c in the dollar might be paid before the end of 2025. I emphasise this is a crude estimate only and the actual outcome may be materially different.”
Knowing however the importance of hope, especially to the forlorn and despairing, Donnelly allowed let slender ray of sunlight to peep through.
“Given such a delay is likely, I will consider the merits of an interim dividend,” he said, adding that in any event Trust beneficiaries can expect an update if not a dividend, by November.
The correspondence also contained an annexure listing receipts and payments showing appointee remuneration currently stands at more than $1.9 million.
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