The article discusses the financial struggles faced by architecture firm Elenberg Fraser, following a ruling by the Victorian Civil and Administrative Tribunal in 2019 that found the firm partially responsible for damages from the Lacrosse tower fire in 2014. Liquidator Katarina Di Carlo is investigating the firm’s financial statements, which show sales recorded for the years 2022 and 2023, contradicting claims that the company was not generating income. Di Carlo is also looking into allegations of the group trading while insolvent, as its only asset was a loan to Fraser, which he now says was actually wages that did not need to be repaid.
The liquidator reconstructed Fraser’s books for the years 2020 to 2023, moving the loan from an asset to a cost to reflect Fraser’s advice. This reconstruction suggests that the company may have been trading while insolvent. Di Carlo has demanded that Fraser repay the loan or provide documents relating to the loan agreement and tax returns to verify the money withdrawn was declared as personal income. She is waiting to receive more information about the company’s affairs to continue her inquiries.
Fraser has since set up a new architecture firm, Fraser & Partners, in April 2023. The new group is actively seeking residential and commercial development projects and operates out of a different location than Elenberg Fraser. Many of the high-level architects previously working with Elenberg Fraser are now part of Fraser & Partners. Fraser declined to comment on the liquidation due to legal advice but expressed pride in the work done by Elenberg Fraser and the continued pursuit of projects in a challenging environment.
This article sheds light on the financial challenges faced by Elenberg Fraser following the Lacrosse tower fire ruling and the subsequent liquidation process. The investigation by liquidator Katarina Di Carlo into the firm’s financial activities, including allegations of trading while insolvent, highlights the complexity of the situation. Fraser’s establishment of a new architecture firm, Fraser & Partners, and the relocation of the business to a different office indicate a transition in operations and a focus on new projects.
The reconstruction of Fraser’s books by the liquidator, which moved the loan from an asset to a cost, underscores the importance of transparency and accurate financial reporting. Di Carlo’s demand for repayment of the loan or documentation to verify personal income declarations reflects the need for accountability in financial dealings. The article also touches on Fraser’s refusal to comment on the liquidation process, citing legal advice, while affirming the firm’s commitment to fulfilling its responsibilities and maintaining pride in its past work.
Overall, the article provides insights into the challenges faced by Elenberg Fraser, the investigation by the liquidator, and Fraser’s response through the establishment of a new architecture firm. The shifting dynamics within the company, including the relocation of operations and the involvement of former high-level architects, indicate a period of transition and adaptation. The emphasis on maintaining integrity in financial transactions and honoring commitments underscores the importance of ethical practices in business operations.
