‘Dodgy’ builders costing the economy up to $5 billion each year
John Winter, CEO – Australian Restructuring Insolvency and Turnaround Association, joins Michael to talk about ‘phoenixing’, a practice in the building industry where under-capitalised companies intentionally go into liquidation to avoid paying creditors and workers’ entitlements.
Costing the economy up to $5 billion each year, Mr Winter said phoenixing has been “endemic” for decades.
“It’s become a learned behaviour in the property market because it’s gone on for so long (and) because nobody has really been prosecuted to any great extent,” Mr Winter said.
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