Creditors of 22 companies connected to the flagging Dyldam Group are reportedly chasing $500 million in debt, as the company wades through voluntary administration proceedings.
According to the Australian Financial Review, minutes of the first creditors meeting held in January and lodged with ASIC show total debt claims of $510 million.
McGrathNicol was appointed as receiver on January 5 for 22 entities and development sites connected to the Dyldam Group following ongoing financial woes for the western Sydney real estate developer.
Lauded as one of Australia’s biggest builders and developers of apartments, Dyldam Group has been plagued with financial problems and litigation in the past two years.
Dyldam Group had been voted as one of HIA's top 10 homebuilders for 2018 and 2019.
McGrathNicol has repossessed eight development sites reportedly worth more than $1 billion, predominantly in the western and north-western areas of Sydney, including the site of The Opera, for offshore lenders that funded Dyldam Group projects through Merrylands Opera Trust and The Persephone Trust.
HLB Mann Judd joint administrator Todd Gammel told creditors at the January 13 meeting that the 22 failed companies had “experienced a shortage of funding resulting in cashflow deficiencies” and halting construction work.
McGrathNicol receivers said the immediate focus was to finalise developments that were nearly complete, including Kellyville and the Hills Shoppingtown at Baulkham Hills.
“Based on our early assessment it appears the Group’s difficulties relate more to its capital structure rather than the quality of sites under development,” McGrathNicol partner and receiver Jonathan Henry said.
“Our intention is to finalise development of near-completed sites and provide purchasers with certainty over settlement.”
