Bob Day's unsecured creditors likely left high and dry

SBS World News Radio: Home owners and subcontractors owed millions of dollars by former Senator Bob Day's house building group have been told there is no money left to repay them.

Bob Day's unsecured creditors likely left high and dry

Bob Day's unsecured creditors likely left high and dry

The Home Australia group operated under different brand names in five states and collapsed last month, leaving more than 200 homes incomplete.

David Tetteh has been a painter for more than 10 years.

Last year, he began working for Bob Day's Sydney building company, Huxley Homes.

He says he was paid regularly, until recently.

"They told me no more pay. I said why? They said you'll have to wait until further notice. I said what's happening? They said no, the company is no longer running."

Bob Day's building business Home Australia and its seven subsidiaries, including Huxley Homes, collapsed last month.

The collapse left more than 200 houses incomplete and many home-owners and tradespeople out of pocket.

Mr Tetteh says he's owed at least $24,000 and he's now unable to pay his staff.

"Sometimes my workers call me and threaten me, 'If you don't give us our money you'll be sorry,' and all those things. I feel real pain, you know."

This week, those affected by Home Australia's collapse attended creditors' meetings across the country to determine how much can be recovered.

Home Australia has accrued at least $40 million in debt.

Most of what is recovered will go to secured creditors, primarily the National Australia Bank.

Whatever is left will be shared among unsecured creditors, including customers and subcontractors.

In the Sydney meeting it was revealed that when Huxley Homes went into liquidation, it had just $1,500 cash in hand.

Liquidators have warned unsecured creditors they're unlikely to recover anything.

Huxley Homes customer Sam Baker now has an incomplete house and is owed more than $130,000.

She says she want answers from one man: Bob Day.

"It really does fall to him to answer all the tough questions about what what he knew, when he knew it and what he did about it."

 






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Published 4 November 2016 1:00pm

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