A company headed by Woonona property developer Michael Strom has gone into administration, owing more than $650,000 to nearly a dozen Illawarra subcontractors.
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Lifestyle Property Development Pty Ltd went into voluntary liquidation on September 2, amid ongoing legal dramas with Mr Strom's Bellambi and Wollongong housing projects.
Mr Strom was contacted for comment but did not respond.
Liquidator Steven Nicols, of Nicols and Brien, has been appointed to investigate the company's finances.
A creditors' meeting at Wollongong's City Diggers on September 19 was attended by several concrete, scaffold and plumbing contractors.
All the companies revealed they were owed thousands of dollars for work on the developments on Brompton Road and Victoria Street. A trucking company claims to be owed more than $77,000 while a scaffolder is allegedly owed $88,510.
A formwork company reported debts of $191,084.
According to meeting minutes, liquidator Richard Brien told creditors that other than two leased vehicles, the company had no apparent fixed assets.
Mr Brien confirmed Lifestyle was one of several companies owned by Mr Strom involved in the construction of the two housing projects.
He said it was likely the creditors would be able to make claims against these other related companies; however this would need further investigation.
Mr Nicols told creditors he was yet to receive a full report of the company's affairs, the minutes said.
Several contractors raised concerns about comments made by Mr Strom, claiming the projects were to be refinanced.
Mr Brien said the developer had told him he needed money to complete the Bellambi site but he had not obtained any other information.
The administrators were contacted but did not return the Mercury's calls.
The construction union told the Mercury the subcontractors chasing unpaid money had allegedly been told they were "collateral damage".
CFMEU NSW branch official Mick Lane claimed new contractors had been brought in to work on the Victoria Street site, in the hope of finishing it.
He said the unpaid contractors had simply been "left in the lurch".
"They've been to the creditors' meeting and were told the only chance now of pursuing the money is waiting for a new financier," he said.
Mr Strom is the director of several companies including Railway Land Holdings, the vendors of the Brompton Road project.
Meantime, Lifestyle Property Development returned to court on Friday for its ongoing battle with two contractors.
SRJ Constructions and Corrimal firm SPK Plumbing and Civil began action against the company in April over alleged debts for work on the sites.
Both cases were listed in the Downing Centre District Court.
