North Queensland business giant the Hedley Private Group has gone into receivership owing more than $150 million.
The ANZ Bank yesterday appointed receivers KordaMentha to Hedley Constructions and eight other companies in the group.
Receiver Robert Hutson says despite their best efforts, management could not keep Hedley Constructions and eight other companies controlled by Tom Hedley afloat.
He says falls in share markets caused massive margin calls on the group's stake in the publicly listed Hedley Gaming and Leisure.
He says that was combined with worsening economic conditions and a downturn in construction in the north.
KordaMentha says all nine companies are continuing to trade at this stage.
Hedley Constructions was working on four projects in Cairns and Townsville.
KordaMentha says it is hoping to continue work on the three projects it is managing.
Receivers Ernst and Young have been called in to manage the Jade apartments project in Townsville.
KordaMentha says none of the employees on the projects it is managing have been stood down.
HLG Price at posting:
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