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The company has collapsed and I'm an unpaid creditor. What now?

Found in: News

It was recently reported in the media that building company Builton Group is going into voluntary administration. Builton is estimated to owe $16 million to approximately 350 unsecured creditors, mostly subcontractors and suppliers. This follows the collapse of Diploma Group, another Western Australian building company, in December 2016 reportedly owing millions to creditors.

The collapse of large corporate groups often leaves a long trail of unpaid creditors. What happens in this situation? What rights do creditors have? What measures can subcontractors, suppliers and other creditors take to minimise their risk?