I have the sad misfortune to run a company that has provided work to a proerty developer who has hit the wall.
Bank (St george) has not put in a receiver yet but are taking 100% of all sales and not providing funds to the developer to pay for the works.
We are watching the bank sell off property that we, not them have paid for through the works we did which to me is like selling stolen property but thats another story.
What blows me away though is their approach. Instead of taking a commercial and common sense approach of supporting the project they are fire selling making their losses even bigger and ensuring there is no chance we ever get paid.
If they were to support the project it would take longer to recoup their money but they and us could get paid.
Instead they kill the project, destroy the value and make a huge loss.
Dumb dumb dumb
The reason they have such high provisions for bad debts is they have no idea how to manage work outs of projects they find themselves de-facto owners of.
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