Early numbers regarding the collapse of Tagara Builders

What has happened so far

Tagara Builders Pty Ltd was up until late June this year a large construction company based in Glynde, South Australia employing nearly 50 people and $70 million of projects under construction. But the company has now fallen into liquidation and early reports have started to indicate the scale of damage which has resulted from this event.

Here are some of key points from these early reports

  1. There are more than 700 businesses listed as creditors.
  2. Early creditor reactions seem to suggest that they’ll be lucky to even get 10 cents on the dollar.
  3. Some of largest creditors are owed money to the tune of $875,000.00, $727,348.44 and $644,973.74.
  4. Considering the the fact that the company chose to go into liquidation rather than administration, the likeliness of creditors receiving any money at all is very remote.
  5. The company directors are deeply saddened by this event and will try and get the most they can for their creditors.

 

The bigger they are, the harder they fall

And while you’re reading this article it’s important to remember that even though these are just numbers, real people and their families are affected. And as the saying goes, “The bigger they are, the harder they fall”. And in this case, the fall will be hard. Hard working and honest men and women along with their families for no fault of their own will be made to bear the brunt of this collapse. All we can hope for now is that the liquidation in some miraculous way, turns in their favour.

Hard working and honest men and women along with their families for no fault of their own will be made to bear the brunt of this collapse.

But then there are ways this can be avoided. Luck can never be guaranteed to always be on your side. What’s needed is a way to make your own luck. A guaranteed way to ensure that if a business engages in work with another business, the funds owed are secured so that once work is finished, they are released and paid immediately. This is exactly what we at CheckVault have developed. We want to avoid future Tagara incidents which put businesses and their families in tough financial situations. Our aim is to make the industry safer when it comes to payments.

Our product is currently being used by over 400 businesses mostly in New South Wales, and not just in the construction industry but across other professional services like accounting. Their stories are available on our website.

 

 

Start your registration today

 

But coming back to what’s happening in South Australia with Tagara Builders, we sincerely hope that the liquidation comes through with good results for the businesses affected.

Numbers don’t lie – if you’re an unsecured creditor, the numbers aren’t pretty

ASIC recently released their corporate insolvencies report for the 1st July 2013- 30th June 2014 financial year. This report collects and summarises information on the lodgements made by liquidators, receivers and voluntary administrators (external administrators) in the financial year for businesses that went insolvent. It gives us an insight into the

  • number of businesses that failed
  • the size of these businesses
  • the reasons for them failing
  • how much unsecured credit was never paid etc.

If you wish to view this report in full, you can find it here. In this article, I will be looking closely at certain pages in this document and bringing them into discussion.

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  • Use an internet browser with good security protection – Google Chrome is acknowledged as the most highly secure of the most popular browsers. We have optimised our site for Google Chrome to give you the best and most secure CheckVault experience.
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Business Health Check – End of Financial Year is the perfect time

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Walton and the Phoenix

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Just one bad job from going out of business

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