ONE of the region’s largest builders has gone into administration, citing coronavirus effects, tight lending conditions and a “financially catastrophic” Brisbane project as causes of the collapse.
FTI Consulting has been appointed administrator of RGD Group Pty Ltd and RGD Constructions Pty Ltd, both directed by Ron Grabbe.
The major Coast builder sent written notices to creditors on Monday advising of the situation.
“Unfortunately, due to the onerous lending conditions over the past three years and significant consequences caused by the coronavirus, RGD Group Pty Ltd has been forced to be put into voluntary administration,” a letter signed by Mr Grabbe read.
A similar letter was sent out advising RGD Constructions Pty Ltd had been forced into voluntary administration.
“A financially catastrophic Brisbane project also heavily impacted the businesses’ financial position,” the letter continued.
“I intend to work closely with FTI Consulting to get the best possible outcome for the creditors that are affected by this situation.”
Mr Grabbe also wrote it was a “very difficult time for myself and my family and for the local businesses whose support we have enjoyed for many years who may suffer loss”.
“I…