Oracle Homes’ mystery $5m creditor revealed as company tied to founder Tom Orel

As hundreds of trade creditors owed millions by collapsed builder Oracle worry if they’ll get paid, the identity of another party seeking $5.7m in the liquidation can now be revealed.

The identity of the mystery creditor of failed home builder Oracle that founder and director Tom Orel claims is owed $5 million can be revealed – it’s him.

Mr Orel’s official report on company activities and property filed with the Australian Securities and Investments Commission earlier this month said Oracle had $7.6 million in outstanding debts to trade creditors while an unnamed “related party” was owed a further $5.7m.

However, on Monday, Oracle’s liquidator Bill Cotter told The Daily Telegraph the related party “would certainly be a company connected to the director.”

It is not known what is included in the $5.7m estimate.

Formal proofs of debt have not been called for yet, Mr Cotter said.

Oracle Homes founder Tom Orel.

The Daily Telegraph sought comment from Mr Orel prior to publication.

Mr Cotter also said the Commonwealth Bank had appointed another insolvency practitioner, KordaMentha’s Rob Hutson, to look after its interests as a secured creditor.

“That’s quite common,” said Mr Cotter, because his job was to act on behalf of all creditors.

Mr Hutson told The Telegraph the CBA had an interest in sites in current and future display villages.

“Most of it is just land,” Mr Hutson said, adding that concrete slabs had been laid on two sites.

None of the sites involved Oracle customers, he said.

An unfinished Oracle Building home in Queensland. Picture: Facebook

The assets section of Mr Orel’s report said the company had “land – display homes at market value” of an estimated $1.7m.

The Telegraph initially incorrectly said Oracle’s land assets were worth $17m.

Mr Orel’s report said Oracle’s display homes themselves were valued at a further $1.3m.

Plus it had other assets – including but not limited to 26 motor vehicles – carried on its books at another $3.5m.

The largest single trade creditor of the NSW and Queensland-focused outfit is Aus Steel Pty Ltd, which is meant to have been paid $1.5m, while timber business Bretts is owed more than $300,000.

Originally published as Oracle Homes’ mystery $5m creditor revealed as company tied to founder Tom Orel