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· Posted on
February 21, 2024

Aussie construction firm Probuild collapses into administration

Parent company WBHO pulled out the crucial Jenga piece holding Probuild together, leaving 18 major projects in the lurch.

What's the key learning?

  • Probuild's parent company WBHO has withdrawn financial support for the business, causing it to collapse
  • Deloitte has taken the reins to see Probuild through the administration process
  • When a company enters administration, there are generally three potential outcomes: winding it up, restructuring it or selling it).

Background: Probuild is an Aussie building company that provides project management, building and construction services. Currently it has at least 18 major projects under construction across the country.

 

What happened: Probuild is owned by South African construction firm Wilson Bayly Holmes-Ovcon (WBHO). And over the last 4 years, WBHO has pumped $183 million into Probuild to keep it alive.

 

What else: WBHO has had enough, so it's withdrawn financial support for Probuild, causing it to collapse. Now, Deloitte has taken the reins to see Probuild through the administration process.

 

🔔 What's the key learning?

 

💡When a company enters administration, there are generally three potential outcomes.

 

💡We've got:

  • Winding up the company - the company's assets are liquidated, and it ceases to exist
  • Restructuring the company - the company makes significant changes to its structure...and then rises from the ashes again
  • Selling the company - if the business could return to profitability in the future, it could be sold to the right buyer.

‍

💡Probuild reckons its brand is strong, so it may survive this big, big blow.

‍

‍

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