Advanced Search

Share Coverage



Category: Building and Construction / Federal Government

Home Australia creditors search for answers after company's collapse

Thursday, 3 Nov 2016 06:54:21 | Caroline Winter

More than 200 customers were left with unfinished homes. (ABC News: Claire Campbell)

After weeks in the wilderness, contractors and suppliers affected by the collapse of Home Australia are hoping for answers.

Key points:

  • Creditors' meetings are being held to discuss financial situation of each Home Australia subsidiary
  • Home Australia's subsidiaries owe a total $37.7 million
  • Those left out of pocket by the company's collapse say they are experiencing financial stress

Five creditors' meetings are being held today and tomorrow to discuss the financial situation of each subsidiary home builder in Family First senator Bob Day's collapsed empire.

Adelaide scaffolder Steve Knights remains in shock at the collapse of Mr Day's Home Australia group.

"They've been one of my best customers for 15 years now," he said.

"But up until this year, payments started to slow down and we all started to realise that things weren't going well for them."

Mr Knights is one of about 1,700 creditors nationally who have been left out of pocket and in the dark since the company went into liquidation almost three weeks ago.

"I'm owed about $25,000 so yeah, it's a bit stressful," Mr Knights said.

"It means I have to go to the bank and speak to my bank manager and hopefully get some money to tide things over."

'A lot of anxiety, depression, insomnia'

Today's creditor meetings follow a tumultuous week in which embattled Mr Day finally resigned, with a high court challenge launched into whether his election was valid.

In a statement on Tuesday, Mr Day said that potential investors would not be financing his company.

Audio: Listen to Caroline Winters' full story here (AM)

Home Australia's collapse has hit husband and wife painters, Ron and Tracey Van Zoelen, particularly hard.

"We've been working for [South Australian subsidiary] Hampstead Homes for five years as a painter and pretty well solely for Homestead with the odd private job here and there," Mr Van Zoelen said.

"The same day we heard that he went into liquidation ... we were devastated."

It is unlikely the pair will ever see the $24,000 owed to them.

Home Australia's Huxley, Ashford, Homestead, Collier and Newstart Homes owe a total $37.7 million.

Of that figure, $19.5 million belongs to unsecured creditors like Steve Knights and the Van Zoelens, with the remaining $18.2 million owed to the banks.

While subbies and tradies are not insured for losses, the owners of more than 200 homes left unfinished are.

What is being alleged?

So why is the Government asking the Senate to back a High Court challenge to the validity of Bob Day's election? Political reporter Francis Keany explains.

Melinda Bunt and husband Stuart signed with Huxley Homes to build in Sydney's northern suburb of Mona Vale in 2013.

They say they are relieved the company is being liquidated.

"You know it sounds awful — you don't wish bad on anyone — but most of us were holding out and hoping it would happen because it meant our home warranty would be triggered," Ms Bunt said.

Three years on and up to $100,000 out of pocket, they expect to finally move in before Christmas.

"A lot of anxiety, depression, insomnia, people having relationship problems, people having trouble holding down a job, because it's put pressure on them financially and emotionally over the last couple of years," Ms Bunt said.

"We don't have the energy to start up any other legal battles, we just have to regather and enjoy the house that we've built."

AustraliaPlus


 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend