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The Canberra Times
The Canberra Times
Lucy Arundell

New owner of failed construction brand 'intends to complete' all projects

The new owner of a construction brand that entered voluntary administration says it intends to complete all projects on the company's books.

Certain assets from Cubitt's Granny Flats and Home Extension have been bought by Acrow Granny Flats, a sister company of construction business HPAC.

The residential building company has purchased Cubitt's name, intellectual property and brand.

The deal was completed for an undisclosed sum on June 12 by administrators RSM, ahead of a final creditors meeting on June 14.

Other assets headed for liquidation sale

One of Cubitt's granny flat extensions. Picture by Simone De Peak

Cubitt's Granny Flats went into voluntary administration on Tuesday, February 27, and was under due diligence for four months.

The construction business built flats in the ACT, Wollongong and Newcastle.

The remainder of Cubitt's assets - plant, vehicles and assorted machinery - will likely become the subject of a liquidation sale, the company said.

Cubitt's co-owner Kate Cubitt said the HPAC deal is a win for customers and owners who will have the brand and current project schedule "live on" under the HPAC ownership.

"We were incredibly pleased to see a company with the size of HPAC take on the Cubitt's projects and purchase the brand and IP we worked so hard to create. This is a great outcome for our customers," she said.

Ms Cubitt said she understands HPAC recently registered a builder's licence in the ACT under Acrow Granny Flats name in order to complete Cubitt's projects in the territory.

Creditors owed millions

About 120 building projects have been impacted across NSW and the ACT, including 11 in Canberra. Cubitt's had a display office in Fyshwick.

About 200 creditors are owed $3.8 million, according to liquidators RSM Australia.

Administrators have recouped around $400,000 from the sale of company assets including company plant, equipment, motor vehicles and display homes at Wollongong and Newcastle.

The company was recommended by administrators to enter liquidation after no binding proposals were received, despite early interest.

Administrators said they had interest from more then 40 parties, but only received an offer for part of the business.

At the time, administrators said it was uncertain "whether there will be sufficient funds available to make a distribution to any class of creditors".

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