Dozens of households lose out in collapse of residence builder Bentley Properties


Dozens of households are in limbo or out of pocket after a Melbourne-based residence builder collapsed.

Bentley Properties slid into liquidation on Friday, catapulting clients and collectors into an anxious anticipate information.

Crouch Amirbeaggi Insolvency Providers liquidator Timothy Holden on Monday revealed the corporate owed an estimated $1.6 million to commerce and related-party collectors.

Substantial development had began at about 50 websites by the point Bentley collapsed, and about 26 further shoppers had paid deposits to the house builder.

An estimated additional 34 residence house owners had paid Bentley an preliminary tender payment of between $2000 and $9000, however they’d not signed a contract, Mr Holden mentioned.

“The corporate is bancrupt and doesn’t have any funds accessible to repay deposits paid by these shoppers,” the insolvency agency mentioned in an announcement.

The liquidator mentioned house owners with contracts and residential guarantee certificates ought to contact the Victorian Managed Insurance coverage Authority.

Bentley’s director and his household had been the home-builder’s greatest collectors as they propped up the corporate with their very own cash earlier than it collapsed, the liquidator mentioned.

Mr Holden was getting ready to ship collectors an preliminary round on Friday, however he cautioned it might not embody any findings about what led to Bentley sliding into liquidation or potential claims.

Collectors would discover out about these particulars no later than September 29.

Early proof advised a radical probe of related-party transactions was warranted and Mr Holden was investigating the deserves of an motion for bancrupt buying and selling.

“The director and workers had been working by the weekend to assist the liquidator along with his pressing due diligence evaluation and efforts to minimise losses for all residence house owners,” the liquidator mentioned.

“The liquidator observes that offer chain (and) staffing points and value overruns had been quite common within the development trade in the course of the previous 12 months.

“The director has suggested the liquidator these variables had been materials elements within the demise of the family-owned enterprise.”

Bentley, which has been working for about 17 years, had 11 workers by the point it went below.

Its fall got here after the collapse of main builder Porter Davis in late March, which affected about 1700 houses in Victoria and Queensland.

Porter Davis fell over with about $147 million in debt, however it’s unclear when collectors will get their cash or how a lot they are going to obtain.

Liquidation is a set off for home constructing insurance coverage, which all corporations need to take out on behalf of shoppers by legislation.