Creditors Face Millions in Losses as Bluesky Collapses

Broadmeadows-based builder Bluesky Building and Construction Group has entered administration, leaving creditors facing $4.16 million in losses. The company, which had operated in Victoria, New South Wales, and Queensland for over two decades, specialised in both residential and commercial projects, including insurance builds.

Employee and Creditor Claims

Employees are owed a total of $591,051, including $457,403 in unpaid wages and superannuation and $94,325 in leave of absence entitlements.
Unsecured creditors are owed $2.75 million, while secured creditors are owed over $1 million. The list of unsecured creditors includes:

• The Australian Tax Office ($682,704)

• Cool & Connected ($28,672)

• Nabz Tiling ($20,570)

• ATF Master Timber Floors ($13,813)

• Sedra Kitchens ($17,400)

• Rockcon Constructions ($12,355)

Loan Agreement Under Investigation

Company documents list the director as Ahmad Hamoud, who himself is reportedly owed $375,101. A significant focus of the administrator’s investigation concerns a $730,000 loan from Hamoud’s mother, entered into in March 2025. The administrator, Aaron Lucan of Worrells, said the agreement may be deemed an “unreasonable director-related transaction,” as security was granted to Hamoud’s mother and registered on the Personal Property Securities Register in March.

Ongoing Legal Proceedings

At the time of its collapse, Bluesky was facing three ongoing proceedings at VCAT, all of which were being defended by the company. In February 2025, Company 65-67 Arden, trading as 7Star Developments, launched a winding-up order in the Supreme Court of Victoria, listing Bluesky as owing $168,000. The action was adjourned shortly after the appointment of insolvency expert Aaron Lucan of Worrells as administrator on 25 July 2025.

Financial Struggles and Unpaid Debtors

According to the administrator, Bluesky’s financial troubles escalated in March when one of its largest trade debtors failed to pay invoices totalling $1.6 million. That customer later entered liquidation in August 2025, resulting in severe cash flow shortages. Bluesky was owed a further $2.28 million, though much of this is considered uncollectible as the debtors are also in external administration.

Rescue Proposal for Creditors

Mr Lucan confirmed that the director has proposed a rescue deal worth $1.22 million, payable over two years. Under the plan, employee wages and superannuation would be paid in full, while nonpriority creditors would receive approximately 32 cents on the dollar. Claims by the director and related parties would fall behind ordinary unsecured creditors.

Upcoming Creditor Vote

The administrator recommended creditors accept the deal, stating it would likely provide a greater return than liquidation, where creditors risk receiving nothing. Creditors are expected to vote on whether to proceed with the arrangement or place the company into liquidation at a meeting scheduled for this week.