Decmil wins Avid shutdown bid

A year-long court stoush over a $1.3 million bill has come to a dramatic end, with contractor Decmil succeeding in its bid to wind up Avid Australia Holdings.

During a hearing of the matter in the Supreme Court this morning, Master Craig Sanderson ordered HQ Advisory’s James Thackray be appointed liquidator to the entity and that Avid Australia pay almost $7,000 in legal costs for Decmil.

The wind up order comes just months after Decmil won its court battle against Avid Australia over outstanding payments its company Avid Resources contested before its collapse.

The Osborne Park-based contractor mounted the lawsuit against Avid Australia in November, claiming it owed the money as part of a parent company guarantee it signed when Avid Resources agreed to undertake works at Rio Tinto’s Mesa mines.

Despite sending two invoices and several demands for payment of the outstanding funds, Avid failed to pay, prompting Decmil to drag the subcontractor to court seeking payment and damages for an alleged breach of contract.

The legal action coincided with the appointment of administrators to Avid Resources, the engineering and construction subsidiary of AvidSys Group.

A probe conducted last month cast serious doubt over AvidSys's ability to repay Decmil, after boss Ansh Gautam conceded the company's debts has ballooned to $26 million.

The Avid director took the stand, telling the court the parent company had no source of income, with both of its once profitable subsidiaries now in the hands of administrators.

More disclosure demands had been made and a second hearing had been scheduled, but the appointment of a liquidator will render the means inquiry unnecessary.

It's not yet clear what the appointment means for AvidSys's appeal against the payment order, which was foreshadowed at the last hearing.