This was published 9 years ago
Updated ,first published
The company at the centre of a wages stoush at a premier racetrack redevelopment where two workers died has gone under owing millions of dollars.
Multiple subcontractors went unpaid at the Eagle Farm Racecourse project with claimed debts in the hundreds of thousands of dollars as Landfill Logistics struggled to stay afloat.
They were holding weekly protests outside the track’s $37 million infield stable redevelopment, calling on lead developer Criscon and the Brisbane Racing Club to step in and pick up the tab.
Both companies paid small amounts to various subcontractors but wouldn’t take responsibility for the full bill, saying the contracts were between Landfill and the subcontractors.
Two small business owners were worried they would be out of business by Christmas.
On Monday, the earthworks company faced its second application for liquidation in less than a month, this time over a $44,000 debt to commercial cleaning machine company Sweepers.
The company’s lawyer blamed Criscon for the problems, claiming the principal contractor owed it about half a million dollars.
Criscon’s Michael Crisci refused to comment, hanging up when questioned by Fairfax Media on the debt claims.
Sweepers was supported by four other entities in court, bringing the total debt claimed to $4.2 million, before the money owed to the tradespeople was considered.
Margaret Carter-Lannstrom’s self-managed super fund is calling in a debt of almost $3.3 million.
Subcontractors criticised both the BRC and Criscon for not doing more to help, claiming they should have released information that there were problems with Landfill.
BM Earthmoving owner Barry Mitchell, who claims a debt of $63,000 and has been organising the protests, said he hadn’t given up despite shrinking hopes of being paid.
“It doesn’t look too hopeful but we’re just going to sort of shame BRC,” he said.
“I’ve sent a letter off to ASIC now (claiming) that they allowed them to trade insolvent.”
In a statement last weekend, BRC CEO Dave Whimpey said the club’s only contract was with principal contractor Criscon and it had paid all claims.
Liquidators Michael Peldan and Michael Griffin, who didn’t return phone calls on Monday, will now attempt to recover the money.
Landfill Logistics lawyer Nathaniel Delaney said Criscon owed his client a debt in the “mid six figures”.
“The position of the respondent was that it did work on behalf of the BRC,” he said.
“The BRC paid for that work to the developer, Criscon. Criscon withheld payment of monies to our client to wait for it to be wound up, so they wouldn’t have to pay.
“The victims are the subcontractors and our client’s directors.”
He said Landfill director Wayne Innes had wanted to attempt to trade out of insolvency.
“A lot of the bills that are owed to the smaller subcontractors could have been remediated,” Mr Innes said, saying his company simply was not “in a position to pay” the money.
“They could have been paid. Criscon is the principal contractor. You need to talk to them and ask why they’re not paying out the money.”
Mr Innes hung up before he could be questioned about how much money he owed in total or what caused his company to get so far in the red.
Work at Eagle Farm only recommenced last week, two months on from the tragic accident where workers Humberto Leite and Ashley Morris were crushed to death by a concrete panel.
The case of Claudio D’Alessandro, 58, who has been charged with manslaughter over the deaths, returned to court on Monday for a mention.
*This article originally referred to Mr Wayne Innes as Criscon’s director. The article has been amended to reflect Mr Innes’s correct title.