Ailing construction company Greatearth, which has abruptly pulled out of five Build-To-Oder (BTO) projects under the Housing & Development Board (HDB) due to financial troubles last week, has reportedly started the process of winding up.
Greatearth Corporation and Greatearth Construction were the main contractors for the five BTO projects comprising a total of 2,982 units.
These projects include Sky Vista @ Bukit Batok, Senja Heights and Senja Ridges in Bukit Panjang, Marsiling Grove in Woodlands, and West Coast Parkview in Clementi.
The Straits Times (ST) reported on Friday (3 Sep) that the director of Greatearth Corporation and Greatearth Construction, Goh Eng Hwee, has filed a statutory declaration of the company’s inability to continue the business.
As such, professional services firm PwC has been appointed as provisional liquidators for the companies, and a creditors meeting is slated to be held on 27 September.
Affected homebuyers have also been informed by HDB that the projects – which have stopped since 20 Aug – will face further delay, and that it will appoint new contractors to complete the remaining works. But it did not specify the length of the delay.
ST also reported that Greatearth has two other public projects – the Mandai Crematorium and Columbarium under the National Environment Agency (NEA), and the Gali Batu bus depot under the Land Transport Authority (LTA) – that are also facing possible hold-ups.
It highlighted that several subcontractors had also claimed of having heavy financial losses on the contracting fees owed to them by the construction company, and some failed to recover building materials due to being locked out of the sites.
