Administrators for collapsed construction group PBS Building have recommended "immediate liquidation" for four of the five companies in administration.
The recommendation to creditors was released ahead of a final meeting scheduled for Wednesday, where creditors will vote on the future of the 34-year-old building firm.
In a statement, administrators RSM Australia advised four companies, including the ACT and Queensland construction groups, should be liquidated.
A different approach was recommended for the group's NSW construction arm.
It follows six months of investigations into the company's financial situation, which revealed possible debts of up to $169 million.
Five PBS companies entered voluntary administration on March 7, halting work at job sites across Canberra, NSW and Queensland.
PBS Building had 24 active projects under way at the time, worth $439 million.
RSM Australia advised creditors of PBS Building (NSW) Pty Ltd to enter a deed of company arrangement, an agreement that sets out how the debts would be dealt with.
The administrators expected creditors were "likely to obtain a better return, in a shorter period of time" should they vote on the arrangement.
Litigation funder Clover Risk Funding would support the arrangement.
RSM Australia partner Jonathon Colbran said the deal had only been secured for the NSW company because of the value of outstanding security of payment act claims that were still being pursued.
"This DoCA proposal is a complex solution to a complex administration which would allow the administrators to continue our legal pursuit of contract payments we believe are owed to PBSB NSW and its creditors,'' he said.
Creditors are due to vote on the future of the five PBS companies at a final meeting on September 6 in Canberra.
Mr Colbran said the recommendations were based on six months' worth of investigations and an extensive asset recovery program.
Administrators found more than 500 creditors across the ACT, NSW and Queensland could be owed about $169 million collectively.
Mr Colbran said the estimated debt could change due to overlapping claims.
Ian Carter and Adam Moore are the current directors of PBS Building Pty Ltd.
The Belconnen Markets redevelopment, a defence housing project in Coombs and a series of homes in Strathnairn were among the group's ACT projects at the time of collapse.
We've made it a whole lot easier for you to have your say. Our new comment platform requires only one log-in to access articles and to join the discussion on The Canberra Times website. Find out how to register so you can enjoy civil, friendly and engaging discussions. See our moderation policy here.
