VACANT: Little activity at Ostwald Bros. Dalby.
VACANT: Little activity at Ostwald Bros. Dalby. Michael Doyle

Ostwald brothers back in business with new entity

THE former executives of failed civil construction firm Ostwald Bros will resurrect one section of the business, under a new entity.

Brendan, Matthew and Daniel Ostwald officially completed a deed of company arrangement earlier this year, with an unnamed financial backer helping them to create a new business out of Ostwald Construction Materials.

The Ostwalds will have "substantially less than 100 per cent" control over the Toowoomba-based company, which is listed as Surat Basin Construction Materials in the deed of company arrangement.

A spokeswoman for liquidator PricewaterhouseCoopers said the claims from OCM's creditors had now been "released and extinguished".

Documents revealed the creditors will now be placed into a trust. Trustees expect to declare a dividend in May.

The news comes just a month out from the winding up of Ostwald Bros, with just one project left to be completed.

"Out of the nine projects continued by the liquidators, eight have been completed with the final remaining project expected to be completed in or about April 2018," the PwC spokeswoman said.

"The liquidators expect that the total gross cash surplus generated as a result of the completed projects to be between $500,000 to $800,000."

A massive auction of Ostwald Bros trucks and equipment this week is also expected to cut the debt held by the company, which was more than $60 million in September last year.

About $2.3 million in employee entitlements have been paid under the Federal Government's Fair Entitlement Guarantee scheme.

PwC is also chasing more than $5 million owed by Seymour Whyte Constructions for projects in New South Wales.