Modco: Co-founder Cynthia Lu breaks silence with peace offering

Modco co-founder Cynthia Lu has addressed the sensational collapse of her building company for the first time, claiming she is giving up her right to any assets in a bid to take accountability and prioritise others.

Breaking her silence a month after the Perth-based company appointed administrators, Ms Lu is now facing vitriol from angry customers, who say her offer is moot — given there are barely any assets in the company anyway.

An administrator’s report is set to reveal company debts of up to $5 million and up to $300,000 in assets. The maximum asset total is unlikely to be realised given it largely relied on customers making good on progress payments.

As a secured creditor, Ms Lu would have been first in line for a slice of any assets after she lodged a claim for $2.1 million, which she said her company, Ms Lu Holdings, had lent to Modco.

But Ms Lu said she only made the claim to kickstart the administration process.

“Ms Lu (Holdings) is a creditor because it lent $2.1m so (Modco) could pay bills and support its operational needs and financial obligation,” she said.

“When it was evident the company was struggling to meet its obligation, I made the decision on behalf of Ms Lu (Holdings) to place the company into administration by making the claim.

“Ms Lu (Holdings) has voluntarily (opted out) to receive any funds from the administration process, a decision made to acknowledge accountability and to prioritise an equitable distribution to other creditors during this challenging period.”

Ms Lu co-founded the company with her husband Yusuf Khan and remains a three-quarter shareholder. She claims she has not been involved in day-to-day operations for a while.