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Forge debts mount as claims roll in
Forge debts mount as claims roll in

The size of Forge Group's debt has ballooned to more than $700 million as subcontractors join creditors in making claims against the collapsed engineering company.

A week after ANZ and other financiers triggered Forge's demise by withdrawing their support, a growing list of unsecured creditors has added at least $200 million to the estimated debt.

All but one of Forge's $1.5 billion in contracts have been forfeited and about 1470 jobs lost since receivers KordaMentha and administrators Ferrier Hodgson took control of the company.

Family-owned transportable building provider Alco Building has a $4.9 million claim against Forge and joint venture partner Pilbara Logistics over a contract for Rio Tinto's Hope Downs 4 iron ore project.

Alco filed a Supreme Court writ for that amount, plus interest and costs, against both companies last week after Forge had been put into administration.

Business owner Gary Ashfield said the contract to supply buildings for the project had been under dispute for the past year over changes to the scope of work.

"It's put my whole business and livelihood in jeopardy," Mr Ashfield said. He said he had been forced to sell one of the family's homes to cope.

Administrators will host the first meeting for Forge creditors in Perth on Friday.

Receivers confirmed yesterday that Forge managing director David Simpson had been dismissed last Thursday.