Monies owed to creditors by Senator Bob Day’s failed building empire revealed in documents

THE South Australian arm of Senator Bob Day’s failed building empire, owes at least $5 million to predominantly SA creditors, according to documents lodged with the company’s liquidators.

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HOMESTEAD Homes, the South Australian arm of Senator Bob Day’s failed building empire, owes at least $5 million to predominantly SA creditors, according to documents he has lodged with the company’s liquidators.

The creditors’ list, released by liquidators on Thuesday, comes as a party source said an announcement about the potential sale of Senator Day’s parent company Home Australia and its national subsidiaries could happen on Friday.

Senator Day announced last week he would have to resign because of the liquidation, but a sale could potentially allow him to avoid bankruptcy and remain in the senate.

A spokesman for liquidator McGrath Nicol said it was not in a position to announce any imminent sale. He said there had been “dozens of expressions of interest in different parts of the business”. Senator Day put Home Australia, which includes Homestead Homes SA, into liquidation last month after a deal to save the company fell through.

Senator Bob Day’s collapsed homebuilding company owes at least $5m, predominantly to SA creditors.

Homestead Homes owes 185 suppliers, subcontractors and interrelated companies at least $5 million, according to Senator Day. The largest debt is $745,000 owed to an Adelaide building supply company and $500,000 owing to an airconditioning firm.

The total is likely to increase because many creditors had not quantified their losses on the balance sheet and is still to be reviewed by the liquidators. Nationally, the Home Australia empire, includes Huxley Homes in NSW, Ashford Homes in Victoria, Collier Homes in WA, Newstart homes in Qld, owes at least $30 million to unsecured creditors, according to financial documents signed by Senator Day.

He listed Homestead Homes assets at $10 million with an estimated realisable value of $603,637. The company’s total assets were listed as at least $34 million, with realisable assets of $18.17 million

He said the group also owes $11.4 million to the National Australia Bank.

Liquidators have separately calculated Home Australia’s debts at $37.8m, comprising unsecured and secured debt of $19.6m and $18.2m respectively.

The first creditors meeting for Homestead Homes contractors is on November 4 at the Law Society of SA’s headquarters.

Meanwhile, SA Labor MP Nick Champion said Senator Day should give up his Order of Australia medal and withdraw from public life. “(He should) consider the orders that he’s previously got, and he should consider retreating from public life and giving up his affairs in order to fix his private business affairs,” he said.