An embattled Sydney construction company has gone into voluntary administration after being hit with a potential $11.9 million in claims for alleged defects in an apartment building.
Family owned business J & CG Constructions started in 1994 and it worked on multistorey apartments, offices, retail and commercial spaces.
But in recent years, the owners from multiple residential projects have made claims for alleged building defects, according to documents lodged with ASIC.
J & CG Constructions went into administration in May amid proceedings in the NSW Supreme Court and the NSW Civil and Administrative Tribunal.
It owed about $14.9 million to unsecured creditors, mostly from claims related to alleged construction defects, according to the documents lodged with ASIC on Friday.
Sole director and shareholder Mark Guerreiro told administrators the company’s failure was due to the financial impact of the claims.
“The director considered that the scale of the claims, along with the legal costs expected to defend them, exceeded the company’s financial capacity and rendered the business no longer viable,” the administrators’ report said.
The largest of the defect claims related to the Rising Apartments in Mascot, on Botany Road,…