The CEO of the latest major Aussie construction firm on the brink of collapse died just days before the crisis talks.
Building giant Metricon is in urgent crisis talks with clients after falling into financial strife.
Sales staff within the company were being instructed to increase cash flow by securing more deposits, the Herald Sun reported on Wednesday.
Metricon bosses are expected to meet with major clients including the Victorian Government on Thursday.
Earlier this week, the company co-founder and CEO Mario Biasin died unexpectedly at the age of 71.
The company confirmed Mr Biasin had been experiencing mental health issues.
In a statement, an executive from Metricon, Ross Palazzesi, revealed his colleague’s sudden death was a shock.
“As friends and colleagues of Mario, we are shocked and so saddened by the news,” he said on Monday.
“Our hearts and thoughts are with the Biasin family. We will ensure Metricon Homes continues all operations and on-site construction as usual during a very emotional time.”
Just days later, though, the company has entered crisis talks.
Metricon employs approximately 2500 staff, primarily in eastern Australia, where it has a pipeline of roughly 4000 homes under construction.
Acting CEO Peter Langfelder denied the company had solvency issues and said the business continued to be viable.
“There is simply no basis to these rumours. Metricon is a strong viable business without any solvency problem,” he said.
The biggest challenge Australia faces is to get more homes built for more Australian families and as the biggest home builder in the country we are the ones to deliver.”
Construction businesses across Australia are facing difficult circumstances in the face of rising materials costs and labour shortages.
Earlier this year, giant firms Probuild and Condev went into liquidation, impacting thousands of staff and subcontractors.
Government efforts to support construction during the pandemic have boosted production rates beyond what key supply chains can support.
Metricon has been trying to alter, offload or delay contracts to help deal with the constraints.
https://www.news.com.au/finance/business/crisis-talks-underway-as-building-giant-on-brink-of-collapse/news-story/4a819c88bd378ec0cc286074303cb503