Part of the reason the administrator Armstrong Wily will recommend liquidating the company at the August 14 creditors’ meeting is to pursue reports forgiven debts to Mr King’s former business partner, South Coast developer John Carson, had also contributed to the builder’s downfall.

Beechwood administrator Armstrong Wily partner John Hurst said that despite Mr Carson’s debt being forgiven, if Beechwood was liquidated he could have more powers to pursue that money.

Mr Hurst said that as the administrator he has had no cause to contact Mr Carson, a former South Coast partner in Beechwood.

But he said if the company was liquidated things could change.

“We will be recommending the company be liquidated, and if it is I am going to pursue him for it.

“Once the company is in liquidation we have more powers that enable us to pursue various avenues, that could mean we overturn Mr Carson’s forgiven debts,” he said.

Speaking on behalf of John Carson, Heard McEwan legal director, Nathan Heard said Mr Carson continued to be concerned by references made in the media to him and his companies and the events surrounding the Beechwood Homes administration.

“Recent suggestions that he is in debt to the Beechwood Group are false and Mr Carson will welcome the opportunity to speak with any liquidator of Beechwood Homes, an opportunity that to date he has not been afforded by the administrators.

“Such a meeting will dismiss the need for any further harmful speculation,” Mr Heard said.

“Mr Carson is sympathetic to the difficulties now faced by the suppliers and subcontractors of Beechwood Homes, many of whom he has worked with for in excess of 30 years, and will continue to assist those on the South Coast by providing a source of work in these challenging market conditions,” Mr Heard said.