Dyldam was founded on 5 November 1987 and became one of the more well-known high-density apartment developers. It primarily constructed apartments in Sydney’s western suburbs. The Company experienced significant growth over the years and took part in numerous development projects.
The company had been insolvent for an extended period of time and placed into Administration due to numerous demands for payment and claims being pursued in the courts combined with an ongoing shareholder dispute.
Andrew Blundell and Simon Cathro were then appointed Administrators of the Company.
Background
Over the course of its existence, the Company served as the head builder on a sizable number of projects finished by the larger Dyldam group of organisations.
According to our investigations, the Company then hired a large number of subcontractors, both linked and unrelated parties, to help it complete the building activities on various development sites.
The Company is no longer developing and that the last project it finished was completed in September 2020.
The main factors leading to the failure of the company were its inability to generate a profit since at least June 30, 2017, as well as a protracted shareholder dispute.
How did we assist
We were appointed by the directors who wanted to put forward a Deed of Company Arrangement to creditors. An offer was put forward and whilst we viewed the offer as being worse than liquidation, creditors voted to accept the Deed of Company Arrangement.
Currently, the company is still subject to a Deed of Company Arrangement.
Outcome
In a resolution, a Deed of Company Arrangement was approved.
