About 70 creditors, many from the Peel region, are claiming to be owed money by a Mirabooka building company that has been placed in the hands of liquidators.
Cole Building Pty Ltd, trading under the name Colista Homes, was entrusted to administrator Steven Kugel of The Insolvency Experts on January 31.
The shareholders placed the company into voluntary liquidation.
The Insolvency Experts’ Scott Howell, who spoke for Mr Kugel at the creditors meeting on Friday, said creditors claimed to be owed more than $1.4 million.
Colourcraft Painting Service owners Leif Nissan and Barbara Becker said they represented 25 creditors at the meeting from areas in the Peel region including Mandurah, Falcon and Halls Head.
Ms Becker said his company was owed about $60,000, but Mr Howell said at least one secured creditor would be in line for payment before local businesses.
Mr Howell also said companies related to Cole Building Pty Ltd claimed to be owed about $500,000.
“Several finance companies and trade creditors may hold other securities,” Mr Howell said.
Colista Homes sole director and Halls Head resident Debra Cole declined to comment.
Mr Howell said investigations were being undertaken to identify the reasons for the company’s financial position.
“Creditors want to know why they are in this position and if they can get recoveries,” he said.
He said a report to creditors would be made within three months and ASIC would receive a report within six months.