The developer behind the Bowline apartment development in Wickham claims to be owed $8.5 million by the project's main contractor after it lost its building licence and went into administration in March.
An administrator's report to creditors of failed building firm Eastern Pacific says the Sydney-based company became insolvent after NSW Fair Trading refused to renew its licence in March.
The report says Eastern Pacific's financier withdrew access to a loan facility when Fair Trading knocked back its licence renewal due to two outstanding NSW Civil and Administrative Tribunal (NCAT) claims.
The Service NSW website shows NCAT issued Eastern Pacific with six work rectification orders between April and December last year.
The creditors' report says a company related to Eastern Pacific has been addressing the rectification works in the hope of having the NCAT matters dismissed and Eastern Pacific's licence renewed.
The company was involved in at least four projects in NSW in recent years. Its website is not functioning.
Eastern Pacific's collapse has left Bowline developer Multipart Property scrambling to find another builder.
The administrator's report says Multipart development vehicle Dangar St Wickham Pty Ltd has lodged a proof of debt for not less than $8,511,500, an amount which could be reduced by $2,911,130 in "retention" guarantee monies the developer holds in trust from the contractor.
The Newcastle Herald reported on Tuesday that Multipart was in negotiations with Newcastle firm Basebuild to complete the 17-storey project, which started more than two years ago but has not progressed beyond the basement car park excavation.
Buyers, some of whom bought off the plan as far back as 2019, will have to wait until at least the second half of 2025 for their apartments to be finished.
The delays are due in part to water leaking through the three-storey excavation walls, which sink below the level of the nearby harbour.
Multipart called in geotechnical engineering firm Keller to fix the problem last year.
The administrators lodged a deed of company arrangement with the Australian Securities and Investments Commission on Monday in an attempt to claw back money for creditors.
The report estimates the company owes $36.4 million, including $9.8 million to unsecured creditors and $25.9 million to contingent creditors.
Multipart is one of four property developers listed as contingent creditors owed a total of $23.5 million.
Basebuild said on Monday that it hoped to start work on Bowline this month and Multipart said it remained "fully committed" to completing the project.
The Herald reported in October that Multipart had pushed back the expiry date for buyers' sunset clauses for a third time to 2026 after switching financiers.
Multipart declined to comment.
