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Bob Day's Homestead creditors get grim news

Friday, 4 Nov 2016 09:55:54 | Angelique Donnellan

Bob Day's financial support for Family First will be investigated by the liquidator. (AAP: Lukas Coch)

The liquidator of Senator Bob Day's failed businesses will investigate funds given to Family First, after it was made clear unsecured creditors are unlikely to get any of the money owed to them.

Unsecured creditors of Homestead Homes, the South Australian arm of the failed Home Australia group, met in Adelaide on Friday morning to hear from the liquidator McGrathNicol.

They heard Homestead owed 180 unsecured creditors $4.8 million.

McGrathNicol liquidator Matthew Caddy said the firm's realisable assets were about $600,000.

He told the meeting the financial situation was "dire" and the buck stopped with sole director Mr Day.

The liquidator said when Mr Day went into the Senate, Homestead and four other businesses across Australia were left to run themselves.

Mr Caddy said people who ran a successful businesses knew it was not possible to let a business run itself.

He said about $2 million Mr Day gave Family First would be scrutinised as part of an investigation into the group's affairs and whether there had been any breaches of corporations law.

Small businesses hit hard

Creditors who attended the meeting expressed their disappointment.

Tony Calbinese said his waterproofing firm had been hit hard and was out of pocket $13,000.

"I've been working for Homestead for 24 years, so it's a long time. I was loyal to the company ... I've learnt a lot from it," he said.

The owner of a cabinet making business, Mary Haas, said she and her husband were owed $750,000 and jobs might have to be cut.

She said 70 per cent of their work was for Homestead and they would have to consider shedding staff because the work was gone.

Painter Ron Van Zoelen said before he went into the meeting he was hoping to hear would get back some of $25,000 he was owed.

But he left the meeting looking visibly upset and not wanting to comment any further.

Across Australia, there are about 1,700 creditors who are out of pocket a combined $37.7 million, including the National Australia Bank which is owed $17.5 million.

AustraliaPlus


 

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