Busby Group on Campbell Street.
Busby Group on Campbell Street. Allan Reinikka ROK120218abusby2

Busby's fight for money owed after it goes into liquidation

A construction company which went into voluntary liquidation last month with debts of more than $2m, is suing two companies for money owed.

Civil and mining construction company Busby Contracting Pty Ltd went into voluntary liquidation on February 5, owing $2.4 million to creditors, employees and the tax office.

On Thursday, Busby Contracting's lawyer Allan Grant was successful in an application to Rockhampton District Court to proceed with a lawsuit against another construction company and a mining company.

According to court documents, $184,223 is outstanding from a $3.2 million contract Busby Contracting had with Ostwald Bros Pty Ltd for expansion works of the Dugald River Mine Village north west of Cloncurry.

According to the claim Ostwald Bros went into administration on August 25, 2017.

MMG Limited owns Dugald River Mine and is listed as the second company Busby Contracting is seeking money from.

The work Busby Contracting carried out at Dugald River included filling walls, and painting walls and ceilings for 300 rooms.

The company also repaired or changed fittings, repaired seals, frosted bathroom windows, fitted locks, and carried out other repairs/fit-outs.

The claim says Busby Contracting also fitted out all 300 rooms with furniture and televisions, and did work on six laundries at the site.

Two other companies are listed in the lawsuit also seeking money from Ostwald Bros and MMG Limited.

Wurtulla Electrical Systems Pty Ltd is seeking $82,256 and Fermor Plumbing Services Pty Ltd is seeking $74,824.

The documents reveal MMG Limited has already paid the amounts sought by the three companies which were $36,859.44 by Busby Contracting, $16,457.77 by Wurtulla Electrical Systems and $14,970.82 by Fermor Plumbing Services.

Busby Contracting had been involved in projects at mines including Eagle Downs, Baralaba, Isaac Plains, Caval Ridge, Rolleston, Peak Downs, Broadmeadows, North Moranbah, Dawson, Curragh, Kestrel, Hail Creek, Coppabella, Jellinbah, Blackwater and Moorvale, and Dyno Nobel Ammonia Nitrate Plant.

Documents lodged with the Australian Securities and Investments Commission on February 5 outlined the minutes of the general meeting where company directors Donald Stephen and Patrick Busby confirmed the company was insolvent and unable to pay debts.