A collapsed building company could be saved after administrators identified 40 parties that were interested in purchasing the business.
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Administrators for Cubitt's Granny Flats and Home Extensions said the future of the business was looking positive after a nation-wide search for potential buyers.
The 30-year-old builder went into voluntary administration in February, affecting about 120 projects across NSW and the ACT.
In March, administrators RSM Australia had identified 373 creditors who are owed about $6.8 million.
About 40 interested parties had expressed interest in buying Cubitt's Granny Flats and Home Extensions, administrators said.
They said 12 parties had submitted formal expressions of interest to purchase part or all of the business or enter a deed of company arrangement (DOCA), a binding agreement with creditors that seeks to maximise the business' chance of survival.
Two parties were undertaking due diligence on a potential DOCA, RSM Australia partner Richard Stone said.
"It's an encouraging development, but it's still early days," he said.
"It's the view of the administrators that a DOCA is likely to provide a greater return to creditors than a single offer or combination of offers to purchase all or part of the business.
"However, we are keeping all options on the table and are continuing to engage with other interested parties should a formal DOCA proposal not eventuate."
'Deteriorating cashflow' led to company's failure
In a statement in February, Cubitt's Granny Flats and Home Extensions directors Kate and Ian Cubitt said they had an "emotional meeting" with staff.
The company had about 80 employees, including five in the ACT.
"We never thought we'd find ourselves in a position where we'd be saying goodbye to our staff, our business, and the many steadfast customers and suppliers," they said in the statement.
"It has been the toughest of days."
The reasons that led to the company's administration were detailed in a report to creditors.
Deteriorating cashflow, declining margins and increased costs had led to the company's financial difficulties, Mr Stone said.
He said the COVID-19 pandemic and several extreme weather events also played a role in the company's collapse.
Administrators' initial investigations found the company had $1.67 million in assets and $5.6 million in liabilities, including money owed to trade creditors and employees.
Administrators said those figures were expected to change as investigations continued.
Administrators seek to extend process
Administrators told creditors they would seek to adjourn the second meeting that was planned for April 10, for up to 45 business days.
Mr Stone said this would allow more time for formal DOCA proposals to be submitted and assessed.
"I would then reconvene the meeting and present final options and recommendations on the future of the company to creditors for a vote," he said.
Cubitt's Granny Flats and Home Extensions was one of several Canberra builders to enter administration or liquidation in recent months.
In March, 50-year-old Canberra builder Project Coordination collapsed owing $25 million.
Family-owned Voyager Projects went into liquidation while national builder Rork Projects entered voluntary administration owing more than $30 million.