A Bendigo business owner is doubtful he will be paid what he is owed by Watersun Homes, which is believed to be up to $20 million in debt.
The Melbourne-based residential home builder entered voluntary administration on February 28, citing insufficient funds to continue trading.
Superior Concrete and Construction director Nathan Tresize was one of three Bendigo business owners to travel to Melbourne on Friday for Watersun’s first creditors’ meeting.
“It doesn’t sound like there’s going to be any money left to pay creditors,” he said.
In which case, Mr Tresize said he’d have to borrow a bit of money himself.
“It’ll hurt… but I think we’re pretty good at what we do, and we’re busy,” he said.
“We’ll keep soldiering on.”
Mr Tresize said he was owed about $17,000 when Watersun collapsed.
A spokesman for Watersun’s administrators, Neil Mclean and Mathew Gollant of insolvency firm Rodgers Reidy, said the company’s debts amounted to approximately $20 million.
“There were 240 projects in progress, 60 contracted and 120 in the pipeline,” he said.
“All projects will be completed over time by the new builders.”
A builder has yet to be appointed.
“Creditors will be paid in order of ranking, from secured creditors to unsecured creditors,” the spokesman said.
“The administrators are talking with a number of interested parties with a view to selling the business.”
Whether or not the company will continue trading, or go into liquidation, is expected to be decided at a second creditors’ meeting in Melbourne on April 5.
Watersun was initially reported to have been owing about $10 million, including $5 million to subcontractors and $1 million for staff entitlements.
The business was believed to have left about 900 creditors out of pocket.
A Bendigo home owner, who asked to remain anonymous, told the Bendigo Advertiser on March 3 the front door of her Watersun home had been kicked in and materials had been taken from inside.
“They (tradespeople) are not realising we are impacted as well. It’s awful for tradies but we don’t have a new house to move into, we have to get a rental property,” she said.
Advice specifically for property owners affected by Watersun entering administration is available from the VMIA DBI website.
Former Watersun employees might be eligible for assistance from the federal government’s Fair Entitlements Guarantee scheme.