Brutal blow to clients of one of Australia’s largest construction companies after it collapsed suddenly, leaving hundreds of unfinished homes: ‘We reserve our rights’
- Porter Davis clients sued for debt
- Grant Thornton appointed as liquidators
Clients of a collapsed construction company are shocked after appointed liquidators announce they will sue some of them for unpaid debts.
Porter Davis Homes went bankrupt last month, leaving the fate of 1,700 properties and a further 779 empty blocks of land in Victoria and Queensland hanging in the air.
Clients were left tens of thousands of dollars out of pocket with increased costs when they signed on to another company to complete construction on their home.
Melbourne insolvency firm Grant Thornton was appointed as liquidators on March 31 and dealt another blow to clients on Friday.
The company sent an email warning that homebuilders with outstanding payments could be sued for money.
Insolvency firm Grant Thornton sent Porter Davis clients an email Friday warning they could be sued for unpaid money
Porter Davis Homes collapsed last month and went under voluntary administration
A disgruntled customer posted a photo of the email they received from the company on Facebook.
“The company hereby gives you formal written notice that the company will not perform any further work in fulfillment of the construction contract,” the email read.
“We will contact you separately regarding payment of amounts to which the Company may have been entitled prior to the date of this notice. The Company reserves its rights in this regard.’
Grant Thornton told Daily Mail Australia that ‘the majority’ of customers, especially those who had lost money in the collapse, would not be affected.
“The liquidators will not pursue payment from Porter Davis customers who are out of pocket,” a spokesman said.
“There have been some cases where clients have received a benefit of up to $100,000 for work on their home that has not yet been paid for. The trustees are investigating these matters.’
It comes as another homebuilder signed on Monday to complete nearly 400 unfinished Porter Davis properties.
Grant Thornton confirmed that Nostra Property Group had entered into a sales agreement for Porter Davis’ multi-unit residential development.
Nostra will complete up to 375 townhouses – 169 of which are not yet started – and provide permanent employment for 16 Porter Davis employees.
Dozens of Porter Davis’ clients gathered on the steps of Victoria’s Parliament on Sunday, calling for more support from the government.
The collapse of Porter Davis put 1,700 projects and another 779 empty blocks of land in Victoria and Queensland at risk
Many said they needed financial and legal help to take their next steps and get their deposits back.
Deputy Prime Minister Jacinta Allan said the government is still assessing what steps it can take to support affected customers.
“If there are more details to announce, we will make those announcements,” she told ABC Radio Melbourne on Monday.
About 1,700 homes in Victoria and Queensland were in limbo when Grant Thornton went bankrupt last month.
Porter Davis joined a growing list of major builders suffering from rising supply costs, labor shortages, as well as less willingness to finance from banks and investors and a sluggish market.