The collapse of John Silverthorne’s VCS Civil and Mining has hit recently listed recruitment company GO2 People.

GO2 yesterday said it was owed $445,000 by VCS for recruitment and labour services, which was put into the hands of receivers and administrators last week.

The Belmont-based company said it was uncertain how much of that amount could be recovered. A doubtful debt provision had been made for the December half.

VCS had about 150 people working on two gold projects near Kalgoorlie, of which about 40-45 were direct employees.

VCS’ lender Remagen Capital called in receivers after the contractor defaulted on a $7.5 million loan. Joint owner Mr Silverthorne said a refinancing of the loan would enable a 100 per cent payout for creditors.

“Whilst VCS has been a material client to the company, the administration of VCS and its uncertain future does not impact on GO2’s current growth strategy,” a GO2 statement said.

The company added that it had no exposure to the collapse of Perth builder Cooper & Oxley.

GO2 said non-executive director Doug Grewar had offered to resign because of a potential for conflicts of interest to arise during VCS’ administration.

Mr Grewar is a director of VCS’ parent company VCS Holdings. The GO2 board would accept his resignation once a replacement was appointed to ensure compliance with minimum director number requirements.

GO2 listed on the Australian Securities Exchange last October after raising $10 million in a float. It had $4.9 million cash at December 31.

Image: Doug Grewar has offered to resign as a GO2 People director. The West Australian.