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The news over the last few days of the Rork group of companies collapsing is a startling reminder of the reality of the current Australian economic climate.

Rork Group had 63 construction projects spread across QLD, NSW, ACT and VIC at the time of its collapse.

Administrators for the company have reported that the company owes debts of nearly $30 million. Of this, over half is owed to unsecured creditors including subcontractors, trade suppliers and such. Many of these subcontractors and trade suppliers will have assets such as tools and supplies on Rork sites and have unpaid invoices.

So, what will likely happen to these assets and invoices?

Administrators will shut down operations and try to recover as much money as possible to repay creditors.

Secured creditors get preference for repayment and unless assets on site are in the PPS register as belonging to another party, they may well be sold to recover funds for the business.

Administrators will look to sell parts of the business and or projects as going concerns, but these are likely to be something of a fire sale. The result will be a significant shortfall in cash to pay debts and could take months to complete.

Unsecured creditors will probably only receive cents on the dollar if anything at all. 

There are ways to protect your cashflow and assets, we can help.

  1. Subcontractor agreements – Let us help draft your subcontractor agreement that puts you in the best position to protect yourself in the event of a collapse. These can vary by industry, state, and project. Our business support specialists are ready to help.
  2. PPS Registrations – We can register your assets so that in the event of a liquidation or administration, ownership is legally bound to you.
  3. Don’t let unpaid invoices build up – If you are in the habit of ensuring your invoices are paid in a timely matter, you are at less risk in the event of a collapse. Again, our business support specialists can help you structure the appropriate debt management policies, and we can help collect overdue debts.

Want to know more?

If you would like to talk to us about how we can help you with your debt recovery we are more than happy to help.

Call your local Business Support Specialist, fill in your details below or contact Customer Service at 1300 361 070.

See what our clients are saying:

Mairin Best
Mairin Best
23. April, 2024.
I have engaged EC Credit Control services on behalf of our business and found them to be extremely professional. EC have provided a review of our terms of business and their debt collection services and we have been pleased with these outcomes to date.
Lisa Haydon
Lisa Haydon
11. April, 2024.
Quick to respond to queries and debt loading. We've had a good success rate for debts that we have pursued. Would get 5 stars if we got a 100% success rate, have had to write off debts due to some clients just still not paying even after contact from debt collection.
Eren Kanli
Eren Kanli
11. April, 2024.
EC Credit Control (Aust) Pty Ltd is simply outstanding! As a company, we've struggled with overdue debts in the past, but ever since we started working with EC Credit Control, those worries have been put to rest. Their professionalism, efficiency, and dedication to recovering debts are unmatched. Their team goes above and beyond to ensure timely and effective debt collection, making the entire process smooth and hassle-free for us. We couldn't be happier with the results they've delivered for our company. Highly recommend EC Credit Control to any business looking for top-notch debt collection services.
John Pohl
John Pohl
21. March, 2024.
EC Credit Control gets the job done. Zeta is always helpful...
Josh Horton
Josh Horton
29. February, 2024.
I was in a spot of bother with an old account that was still active. This was causing an issue for a loan and was very time critical. I was able to reach Tanya after hours and she not only helped me through sorting it out but followed up to make sure I was being looked after first thing the next morning. Very impressed with Tanya's support and the speed of EC Credit Control.
Carissa Taylor
Carissa Taylor
14. February, 2024.
As a new Accounts employee, this was my first time dealing with EC Credit and they were a breeze. I have called Monika for the smallest of questions and she has been most helpful. I didn't know we could contact them and ask for the advice that I have. I would highly recommend them. Carissa - Navace Pty Ltd
Caroline Burnett
Caroline Burnett
12. February, 2024.
Tanya is super helpful and extremely professional with a great sense of humour. She really understands what we need for our business. Highly recommend!! ????☺️
nick fish
nick fish
9. February, 2024.
Due to the fast growth of our business and increasing size dollar value size of our orders it was obvious we needed to tighten our trade legality terms to ensure the safety of our assets be they business or personal liabilities. After some positive interactions with Chris last year we decided to meet up with EC just last week to discuss. The information presented was concise and explained brilliantly making it simple for us to understand our current requirements and what to do next. We now have robust documentation to get paid on-time & in-full. Confident for future products with less stress.”