Revealed: The 300 Oracle subbies owed $14m

Almost 300 subbies and suppliers are owed approximately $14m following the collapse of Queensland building giant Oracle Homes. See the full list.

Almost 300 subbies and suppliers are owed about $14m following the collapse of Queensland building giant Oracle Homes.

The list of unsecured creditors has been filed with the Australian Securities and Investments Commission as liquidators begin the task of unravelling the finances of the company.

Oracle collapsed in August leaving 300 homes unfinished across Queensland and NSW and millions owed to an army of subcontractors including plumbers, carpenters and bricklayers.

The Underwood-based company – which traded under a number of names including Oracle Platinum Homes and Oracle Hunter Homes – made headlines earlier in the year when it sought tens of thousands of extra dollars from clients to complete their homes amid the deepening financial crisis in the construction sector.

Oracle joined a growing list of Queensland building firms including Privium Homes, BA Murphy and Condev, hitting the wall in the past year.

In report to creditors from Bill Cotter and W Roland Robson, of Robson Cotter Insolvency Group, the liquidators said they were conducting a review of uncompleted home contracts.

“The company had a large number of home construction contracts underway at the date of our appointment,” they said. “These ranged from deposits only taken through to building works commenced in some cases and almost completed.”

The collapse of the Queensland builder left many clients with partially-built homes and out of pocket.

Customers may wish to contact the Queensland Building and Construction Commission (QBCC) or Icare in New South Wales about possible claims under home warranty schemes.

Mr Cotter and Mr Robson said they were proceeding with the liquidation process including recovering and selling any available property, investigating the company’s affairs and reporting to creditors about the prospect of a return to monies owed.

Creditors and suppliers were circling Oracle for months over unpaid debts with one taking a caveat over the $5m Gold Coast mansion in which company founder Tom Orel lived with his wife Elia. The company employed about 70 people.

Clontarf-based Dynamic Bradview Roofing launched Supreme Court action in August to recover $910,000 from Oracle over the supply of building materials for homes across Queensland and NSW.

One of the unfinished Oracle Platinum homes

At least two other suppliers - Raven Roofing and Regency Showerscreens and Wardrobes - also had launched debt recovery actions against Oracle.

As its financial situation deteriorated, Oracle demanded up to $120,000 from some home builders before they could move into their homes, sparking a warning from the building watchdog to seek legal advice before paying any extra money.

In a letter to his customers earlier this year, Mr Orel said the increase was blamed on “ongoing ripple effects” of the pandemic causing supply shortages.