Correction of statements made in local media

Seymour Whyte wishes to correct inaccurate statements made by local media inToowoomba and the NSW North Coast last week regarding the ongoing legal proceedings with Ostwald Bros.

After Seymour Whyte terminated our subcontract with Ostwald Bros Pty Ltd (Ostwald Bros) in 2017, Ostwald Bros obtained an adjudication determination with respect to a payment claim.

We consider the adjudication determination was wrong and that we have valid claims against Ostwald Bros.

Recently, the Supreme Court of New South Wales held the adjudication determination was valid, but that the adjudication determination cannot be enforced by Ostwald Bros until an account is taken, pursuant to the Corporations Act, of the amounts due from Ostwald Bros to Seymour Whyte in respect of our mutual dealings under the subcontract.

Seymour Whyte is satisfied with the Court’s decision and consider our claims against Ostwald Bros will be found to exceed their claims against us.

Background

Seymour Whyte was contracted by Roads & Maritime Services to perform early works on the Glenugie to Tyndale section of the Woolgoolga to Ballina Pacific Highway Upgrade project. Seymour Whyte subcontracted works to Ostwald Bros, which in turn subcontracted various parts of their subcontract works to other contractors.

Since Ostwald Bros was placed under external administration in late August 2017 and is now in liquidation, their contractors have not received full payment for the works they performed for Ostwald Bros.

Seymour Whyte has worked with Roads & Maritime Services to minimise the impact on Ostwald Bros’ affected contractors. We have since directly engaged most of these contractors, and will continue to support local industry participation.