More than 110 creditors from across the state have been left $1 million out of pocket following the collapse of Severino Homes last week.
The Ballarat builder went into liquidation on Wednesday. Documents presented to the Australian Securities and Investment Commission on Monday revealed some creditors are owed as much as $135,000, while the Bendigo Bank is owed more than $280,000.
The documents also reveal the company has just $66,673 in realisable assets and just $224 in the bank.
Among the creditors is Absolute Kitchens owner Wayne Moekotte, who is owed more than $28,000 for work done on properties in Ballarat, Horsham and Maryborough 18 months ago.
Mr Moekotte said despite repeatedly trying to contact Severino Homes director Jamie Severino, he had received no response.
“We had been doing work for about three years for him. He was always a bit slow but eventually paid,” Mr Moekotte said. “They’ve made it that hard for us to keep going and it filters down the line.”
Liquidator Claudio Trimboli said a notice had been sent to all 119 creditors regarding the process and an update would be sent in three months time notifying them of the dividends. Also among the creditors is Concept to Reality Kitchens and Joinery owner Brad Lockyer, who is listed as being owed an estimated $4996 for the installation of two kitchens in April where he was not fully paid.
One of the kitchens was at Aaron Stoddart and Kristy Kinnersly’s Lucas home, which has been left incomplete by the builder. The last correspondence Mr Lockyer had with Severino Homes was in June via email.
“I was very close to going to (the Lucas house) and removing the kitchen, but at the end of the day it would only be hurting Aaron and Kristy not (Severino Homes),” Mr Lockyer said.
Homeowners will also now be able to access building insurance for incomplete and defective properties.
Nevett Ford senior associate James Remington, who is acting on behalf of a number of clients dealing with Severino Homes, said affected homeowners should be able to make a claim under compulsory domestic building insurance.
“(Homeowners) should carefully review the policy documents and ensure they lodge the claim with the relevant insurer within any stipulated time limits,” Mr Remington said. “If they believe any of the works may be defective, they should also ascertain the full extent of any such defects and note them in the claim, as failing to do so now could limit their ability to claim for defective works in the future.”
The Courier contacted Severino Homes who declined to comment.