23rd July 2009

ADMINISTRATORS for struggling Far Northern construction company CMC have proposed a formal agreement allowing the business to repay its debt.

In order to come into effect, the proposed "Deed of Company Arrangement" must be accepted at a creditors’ meeting, likely to be held next month.

The Queensland Building Services Authority, which is the licensing body, also must agree to it.

The agreement has been suggested by SV Partners who have been appointed as company administrators.

CMC went into voluntary administration two months ago, owing about $12.6 million to creditors.

SV Partners director David Stimpson could not be contacted for comment yesterday.

A spokesman for the QBSA said it was still assessing the information it had been given by the administrators and it was too early to make comment on the proposal.