A liquidators' second report into the failure of Ballarat's LTR Constructions leaves more questions than answers about the conduct of the business - and little consolation for creditors, who face remote chance of retrieving their money. THE REPORT IN BRIEF The report, issued by Worrells Insolvency and Forensic Accountants Ballarat principal Nathan Deppeler, dramatically shows how lack of oversight in building business regulation can lead to disastrous outcomes for home purchasers, who are offered little protection beyond domestic building insurance and expensive litigation with small hope of financial recovery. Some Ballarat tradespeople have started to come forward, telling The Courier the company's failure to pay them has cost them their livelihoods and in one case led to a marital breakup. One homeowner told The Courier Rodgers undertook to complete their house build in 16 weeks. It took 52. The owner said they were aware LTR had taken the deposit from another job to pay the trades on their build, because the company was so short of liquidity. That second homeowner subsequently was forced to sell as her home was never finished. Despite pleading with LTR to complete her dwelling, she subsequently became homeless. The report also displays weaknesses in the liquidation process and its oversight by the Australian Securities and Investment Commission (ASIC). LTR Construction was incorporated in 2015 and collapsed in late November 2021. Its director, Lachlan Rodgers, is also the director of a related entity, Goldfields Building Co Pty Ltd. That construction company has now also collapsed, leaving homes unfinished and creditors once again unpaid. The Courier is awaiting the release of a second, more detailed liquidator's report into Goldfields Building Co. The Courier inquiries revealed assets and funds belonging to LTR Construction transferred to Goldfields Building Co before the former was placed into liquidation. The liquidators' report confirms this: My (Mr Deppeler's) investigations have identified payments totalling at least $94,000 to Goldfields Building Co Pty Ltd (Goldfields) from early 2020 to the date of my appointment. The payments appear to have been made at a time when the Company was experiencing financial difficulty and, given they share a common director, at a time when Goldfields ought to have known that the Company (LTR) may not be able to pay all its due and payable liabilities," the report reads. Further investigations into the payments to Goldfields may be warranted to determine whether there may be any potential claims available... consideration must also be made as to whether Goldfields would have the financial capacity to meet a claim against it. However, there are insufficient funds in the administration to pursue... investigations and actions. The consideration of Goldfields Building Co's capacity to pay has since been realised, with that company also going into liquidation without likelihood of paying creditors. One former employee of LTR told The Courier the decision to transfer funds was made in the possible knowledge the company was failing. The Courier understands a new third company, Ellen Blake Enterprises, of which Mr Rodgers claims to be an employee through a related business, Rural Construction Collective, is now facing financial difficulty through the withdrawal of contracts for projects. Although his former partner is the named director of the company, The Courier understands Mr Rodgers is the primary contact for its operation. The creditors' report avers LTR Construction was in financial straits from mid-2020; however LTR had made losses over a number of years and, the report says, "had also received a large number of complaints and claims from various suppliers and customers. The resolution of those claims incurred costs which placed pressure on the Company's financial position." Most seriously, the Worrells report considers the possibility LTR Construction continued to trade while it was insolvent. However Mr Deppeler says unless further funds are forthcoming, he cannot investigate into the likely extent of the company's actions: "There are insufficient funds in the administration to pursue further investigations into whether there are claims against the Director for insolvent trading, assessing their financial position and... pursuing the claim," the report reads. Mr Deppeler says those funds must be provided by the creditors; however ASIC says in some cases, where they determine merit, it will provide funding to a liquidator to pursue whether there has been a breach of the Corporations Act. It appears ASIC is unwilling to investigate the behaviour of LTR further. Both LTR Construction and Goldfields Building Co were represented by Ballarat firm Mulcahy &amp; Co as solicitors and accountants, listed as one of 60 unsecured creditors to LTR, along with nine secured creditors. Mr Rodgers is now working as a contractor at Banongill South Pastoral Co*, which is owned in part by Chris Mulcahy, a director of Mulcahy &amp; Co. Principal secured creditor Prospa Advance Pty Ltd, owed just under $50,000, are one of several caveators on a property owned by Rodgers at Shortridge Drive, Lucas. Another creditor, Profit Edge Consulting, is run by Marcus Everett, who holds a mortgage on that land. The amounts owed to creditors are conspicuous by the repetition of the acronym TBC - to be confirmed. There is a lot yet to discover. If you are seeing this message you are a loyal digital subscriber to The Courier, as we made this story available only to subscribers. Thank you very much for your support and allowing us to continue telling Ballarat's story. We appreciate your support of journalism in our great city.