City of Greater Geraldton council waives $33k debt for Pindan Projects after company collapse

The City of Greater Geraldton has voted to waive an outstanding debt of more than $30,000 for Pindan Projects, a WA building company that collapsed in early 2021.

At its meeting on Tuesday, the council voted 10-0 in favour of waiving the $33,327 debt, which was motioned by Cr Michael Librizzi.

“There is no chance of recovery so it needs to come off the books,” he said.

The money owed to the city was for water purchased from city standpipes between February 2021 and May 2021. The majority of these purchases occurred in February and March 2021.

In May 2021, a circular to creditors was received from administrators, informing the city that the directors of Pindan Group had placed the company under voluntary administration, meaning the company was insolvent and was unlikely to pay its debts.

At the time of voluntary administration, Pindan Group owed the city a total of $36,845.34 through two subsidiaries — Pindan Projects WA, $33,686.94 and Pindan Asset Management, $3158.40.

Over the course of administration, Pindan Asset Management was successfully disposed and the entire debt of $3158.40 was recovered.

Pindan Projects WA was liquidated and out of the outstanding debt of $33,686.94, the city received a final dividend of $359.07 resulting in the balance of $33,327.87 becoming uncollectable.

Director of corporate services Paul Radalj said though there was no economic impact, there would be a financial impact and it was important to differentiate the two.

Deputy mayor Natasha Colliver said: “We got off lightly. It’s unfortunate but it is what it is.”

Pindan Projects WA owed up to $80 million to about 1400 creditors, including 500 subcontractors and 40 suppliers.

An estimated $30m was owed to subcontractors and $10m to staff. Administrators laid off almost half of the stricken builder’s workforce.