Customers of a bankrupt construction company are furious as the appointed liquidator warns that some will be pursued over outstanding debts.
That’s despite many being left with tens of thousands of dollars out of their pockets on unfinished homes and facing rising construction costs when they go to different companies to complete construction.
Last month, Porter Davis Homes, Australia’s 13th largest homebuilder, went bankrupt, putting 1,700 projects and a further 779 vacant land blocks at risk in Victoria and Queensland.
Preliminary research indicates that there are more than 1,000 secured and unsecured creditors owing more than $25 million.
Insolvency firm Grant Thornton has been appointed 14 companies under Melbourne-based group Porter Davis.
But Grant Thornton warned in a stern email to customers on Friday that homeowners with outstanding payments could be chased for money.
An email from Grant Thornton, obtained by news.com.au, read: “We hereby give formal notice in writing that we will not undertake any further work in the performance of the building contract.” I’m here.
“We will contact you separately with respect to any payments that the Company may have been entitled to receive prior to the date of this notice. We reserve our rights in this regard.”
Contacting news.com.au, Grant Thornton asserted that this would not be the case for “the majority” of customers, especially those who suffered losses due to the collapse.
One customer, who requested anonymity, told news.com.au that liquidators are “seeking more money from distressed customers.”
Grant Thornton told news.com.au there is no need to panic over email.
A company spokesperson said, “Liquidators do not intend to seek payment from Porter Davis customers.”
“This is true for the majority of Porter Davis customers.
“We have several examples of customers receiving benefits of up to $100,000 for unpaid work from home. Liquidators are investigating these cases.”
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Customers of Porter Davis staged protests over the weekend to seek government assistance as they struggle financially following the company’s collapse.
Dozens gathered on the steps of Victoria’s Houses of Parliament to demand stronger safeguards to protect consumers.
Victim and organizer of Sunday’s protests, Mike Turno, estimated that 800 families lost between $30,000 and $50,000, and said many were left without insurance.
There have also been reports of looting and vandalism at the Porter Davis home, including a suspicious home fire and another customer’s faucet left running, causing the nearly-completed building to flood.
Some owners have blamed disgruntled merchants who are angry at the company’s collapse for damaging their property.
It’s not the first time a liquidator has tried to pursue a customer’s debt following a construction company’s bankruptcy.
Last August, news.com.au reported that the liquidators of Victorian construction firm Langford Jones Homes had sent eight dunning letters to clients.
The liquidator told news.com.au at the time that the demand letter had received “both pros and cons.”
“It was mixed. Some (those customers) paid, some offered compromises, some expressed frustration,” they told news.com.au.
Donna Taylor, one of Langford Jones Homes’ customers, said she paid for the retaining wall but wasn’t willing to pay a cent because the collapse left an estimated $180,000 in pockets.
She said she would tell the liquidator to “fuck her” if he issued one of the letters to her.
Earlier Monday, Grant Thornton revealed that he had secured another builder, Nostra Property Group, to complete the 375 unfinished homes.
News.com.au previously spoke to Melbourne couple Ben Cusenko, 37, and his fiancé Steph, 33, who were among the homeowners affected by the Porter Davis liquidation. rice field.
They signed a contract with Porter Davis last July to build a $320,000 home in Thornhill Park, with plans to convert a block of vacant land into a one-story, four-bedroom home.
Now they aren’t sure what will happen to the partially constructed property, which is just a frame at this point, and what insurance will pay out.
And the incredibly unfortunate pair was also involved in the bankruptcy of another major Victorian construction company, Snowdon Developments, last July. Snowdon Developments received a liquidation order from a court that owed him $28.6 million to unsecured creditors.
“Who can you trust to build your house?” Kuchenko said at the time.
“I can’t believe this happened again.
“We were planning to build with a reputable builder, so we didn’t have to do the same.
“It was kind of a shock for us.”
Name withheld for privacy reasons
alex.turner-cohen@news.com.au
