The administrator of collapsed building company Pindan Group says up to 1,400 creditors are owed between $70 and $80 million dollars.
The company went into external administration yesterday, with hundreds of subcontractors and trade supplies affected.
Sam Freeman from administrator EY said the investigation into how the company collapsed was in the very early stages.
"We understand that the directors had been pursuing opportunities to bring in new investors over the last few months," he said.
"Over the course of the last few days, those investors withdrew from the process and accordingly they made an appointment."
Pindan is the head contractor for a number of WA government projects, with plans to fast-track "security of payment" legislation in the coming weeks.
The company has 68 active projects, approximately 280 employees, 500 subcontractors and 400 trade suppliers.
More than 130 staff lose jobs
"Unfortunately we have had to let some people go today, so there have been approximately 135 people let go today within the wider Pindan group. It's been a difficult day," Mr Freeman said.
"I understand that there has been a lot of wage pressure on the business, COVID has had an impact also.
"We have very limited funds, and absent funding that's obviously particularly challenging for completion of projects, so we need to work with the stakeholders to find a solution."
Mr Freeman said it was too early to tell whether Pindan had been trading while insolvent.
"It will be the subject of our investigation," he said.
"I think we'd have to look at the facts and circumstances around the cash flow over the weeks leading up to the appointment to come to that view, and I can't comment at this stage given we're still reviewing it."
Creditors 'will be left out of pocket'
When asked if subcontractors would bear the brunt of the company's collapse, Mr Freeman acknowledged some creditors would be left out of pocket.
"The facts are yet to be determined," he said.
The directors of the company are working with administrators.
Mr Freeman said people who were building a home with Pindan were being put in touch with their insurers.
