Subbies and customers owed more than $71m are unlikely to see a cent from the liquidation of the Melbourne-based builder but the Commonwealth Bank will get its $33m.
Ben Wilmot, Glen Norris and Chris Herde 4 min read June 16, 2023 - 9:38AM The Australian Business Network
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The liquidators of collapsed builder Porter Davis Homes Group say that struggling subbies and other unsecured creditors owed more than $71m are unlikely to be paid in a fresh blow for the sector, but the Commonwealth Bank will get back almost all the $33m it is owed.
Subbies United spokesman John Goddard said that as usual subbies would not see a cent of their money from the liquidation.
“How is it possible for a builder to lose almost one fifth of a billion dollars?” Mr Goddard said. “I will tell you how. Most switched-on suppliers would have had them on stop credit long before but subbies ‘contractually’ cannot do that quickly. They keep building and working away, getting strung along with payment delays, being asked and coerced to ramp up production and when they ask why their payment claims are late, they are given excuses. The builder just doesn’t pay them.”
Mr Goddard said that if subbies do stop work, the builder simply hires a new crew because other than “the forum on our website, subbies don’t know the misery each other are going through with various builders.”
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