A report from the liquidator of a collapsed housing company found five Orange homeowners have been left high and dry.
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It also revealed there are 47 unsecured creditors owed at least $629,000.
Creditors to Greenbuild Group Pty Ltd/Wentworth Homes, which went into voluntary liquidation last month, include many Central West businesses and tradespeople. The Australian Taxation Office has also claimed it is owed $89,544.
The report, by liquidator Aaron Lucan of solvency company Worrells, said the company had five unfinished house projects in Orange, with contracts totalling about $2.23 million.
"We are in the process of notifying [homeowners] the company has ceased to trade and will be unable to complete their construction project," he said.
The report also claims a total of $432,746 is owed "for work that has not been completed or for work that is defective".
The liquidator's report to creditors said the company had no cash in its bank account, did not own any cars or property but had assets of $818,000 through money it was owed.
"The records of the company that have been provided to me disclose that the company is owed money by two related parties, Sanders Constructions Pty Ltd, $753,333 and Peter Sanders $3900," he said. "I will be issuing notices requesting payments of these accounts.
We are in the process of notifying [homeowners] the company has ceased to trade and will be unable to complete their construction project.
- Aaron Lucan, liquidator, in creditor's report
"The company is indebted to Steve Sanders in the amount of $110,948. It appears that Steve Sanders is the son of the former director of the company, Peter Sanders.
"At this stage I do not know the basis for the loan account or whether the loans account represents a valid claim against the company.
"It is my preliminary opinion that the failure of the company was due to poor management of cash flow and irregularities in the handling of cash flow including significant loans to Sanders Constructions Pty Ltd."
The report named the director of the company as Jason Harmer but said he had "limited knowledge" of the company. "I have concerns that the controlling mind of the company may be another party," he said.
The report said the liquidator's initial investigation had been "hindered by the lack of access to the majority books and records of the company".
The liquidator said the company was incorporated in December, 2017 trading as Wentworth Homes from Taloumbi Place, Orange.
However, it suffered financial difficulty originating from legal proceedings, was unable to obtain home owners warranty insurance and later started trading as Greenbuild Group Pty Ltd.
The liquidator's investigations are continuing.
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