Liquidators for the collapsed construction company Porter Davis say they have rejected approaches from potential buyers, leaving the construction of 1,700 dwellings in limbo.
The announcement is the latest blow for thousands of customers of one of Australia’s largest homebuilders, which collapsed less than two weeks ago after it was unable to find a financial backer to fill a $20m funding hole amid pandemic-induced rising construction costs.
In a statement released Monday afternoon, the appointed liquidator, Grant Thornton, said it had been in contact with “dozens of parties” with “various levels of interest in Porter Davis Group assets”.
But the firm, which last week said about 250 of the unfinished homes were close to completion, said it had not found a single buyer option that is capable and willing to take over all builds for Porter Davis customers.
A spokesperson for Grant Thornton said it hoped to finalise discussions about solutions for parts of the construction firm within the next week. The liquidator said it also hoped to provide clarity to customers about options to engage new builders to finish their homes.
“We remain in active discussions with a short list of parties in order to find solutions for some Porter Davis customers,” a spokesperson said.
The Victorian premier, Daniel Andrews, last week said the state government had “made the right call” after refusing to bail out the construction firm, but added options to help affected customers were being assessed.
Melbourne businessperson Amit Miglani – who in 2021 was sentenced to an 18-month community corrections order after he pleaded guilty to taking money out of his real estate agency’s trust account – revealed over the weekend that he had made an 11th-hour bid to buy the collapsed firm, pledging to keep all employees and subcontractors employed.
A spokesperson for the liquidator said it was a not credible offer, saying Miglani “has not undertaken any due diligence” and would be unable to complete the transaction in the necessary expedited time frame.
The liquidator had warned Porter Davis customers who paid deposits but had not had work commence on their properties that they could be without insurance cover and lose their down payments.
