ASIC seeks liquidation of Diploma Group

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The former builder of the Yanchep Surf Life Saving Club Diploma Group’s DGX Construction is still being investigated by ASIC.

ASIC appeared in the Federal Court of Australia on Thursday, May 4 at the first mention of its application for the appointment of a provisional liquidator to the parent company of the sacked builder of the Yanchep Surf Life Saving Club.

On Friday, May 5 ASIC said in a statement it had made an application for Diploma Group to be wound up to protect the interests of shareholders, investors and creditors.

The statement said the matter had been listed for hearing in the Federal Court of Australia in Perth at 11am on Thursday, May 11.

One of Diploma Group’s – DGX Construction – started work on the new Yanchep Surf Club but then had its contracted terminated with the City of Wanneroo on Thursday, September 29 last year.

City of Wanneroo assets director Harminder Singh said contract was terminated when the contractor did not have a reasonable excuse for being behind on construction of the new surf club.

In its application, ASIC alleges the Diploma Group needs to be wound up on just and equitable grounds and/or on the grounds of insolvency.

“ASIC seeks the appointment of David Hodgson and Andrew Hewitt, of Grant Thornton, as provisional liquidators of the Diploma Group and orders requiring the provisional liquidator to provide a detailed report to the Court that sets out, among other things, the financial position of the Diploma Group,’’ the statement said.

“Mr Hodgson and Mr Hewitt have consented to being appointed as the provisional liquidators of the Diploma Group.

“ASIC is considering the status of its application in relation to one further company.’’

ASIC said Diploma Construction (WA) and DGX Construction had already had receivers and managers as well as administrators appointed.

Last year after stories in The West Australian, Diploma Group chairman and chief executive officer in September wrote to the Australian Securities Exchange to say Diploma Construction (WA) and DGX Construction had contractual disputes with a number of subcontractors, which were subject to ongoing legal proceedings and the company did not intend to comment further on those proceedings at that stage or debate the disputed issues with such subcontractors by responding to any further stories in the newspaper generated by one or more of those subcontractors.