Daniel Andrews says he holds ‘very significant concerns’ for conduct of Porter Davis

As investigations into the collapsed home builder continue, Daniel Andrews has expressed “very significant concerns” about how the company conducted its operations.

More than 1700 home building projects have been abandoned following the collapse of Porter Davis. Picture: Ian Currie

Daniel Andrews says he holds “very significant concerns” about the conduct of Porter Davis, as work continues to examine the true impact of the company’s collapse.

The Premier said the Victorian Managed Insurance Authority (VMIA) is still working with the liquidator to determine whether the failed home building company had deceived customers.

“It is fair to say that we have very significant concerns about the conduct of that business,” he said.

“Whether it be in relation to potentially not forwarding on insurance payments … or indeed baiting customers by offering cut price deals when you had no confidence whatsoever that you’d be around to build those homes.

“That’s not fair, that’s not right.

The Premier has expressed significant concerns for the conduct of Porter Davis. Picture: NCA NewsWire / Luis Ascui

“Again, none of this is proven but there’s certainly enough anecdotal evidence to be significantly concerned, and we are.”

Mr Andrews on Thursday again defended his decision to not bail out the company.

“The banks would not bail this business out, so when the Commonwealth Bank says ‘no, we are not providing you with a lifeline’, then how could you possibly justify (doing that) to taxpayers?

“What we have to focus on is supporting those customers and making sure that those people who were working mainly in subcontractor roles are supported in any way possible.”

Mr Andrews said while other builders were also facing financial pressures, he was unaware of any companies reaching out to the government in search of support.

“It’s fair to say that there are challenges there. I wouldn’t say they were comparable though to what has occurred at Porter Davis,” he said.

“Obviously there are some challenges in this industry across the board. Cost increases and fixed price contracts (are) very, very challenging to make those two things work.”

Earlier this week, the government confirmed that 1100 insurance claims from impacted people have been received by the VMIA.

Bid to rescue Porter Davis ‘not credible’

Liquidators have rejected as not “credible” a bid to rescue collapsed construction giant Porter Davis Homes Group.

The Herald Sun on Sunday revealed that Melbourne businessman Amit Miglani, the chief executive of MIG and Sons, had hoped to purchase Porter Davis, which went into liquidation last month leaving about 1700 projects in limbo in Victoria and Queensland with another 779 contracts signed.

The offer was to buy the business outright in a move that he claimed would keep all staff employed, protect homeowner deposits, and see all projects under contract completed.

However, a spokesman for the liquidator Grant Thornton Australia said they have engaged with dozens of parties who have contacted them expressing various levels of interest in Porter Davis.

“While we have no reason to doubt Mr Miglani’s intention, we do not believe this is a credible offer to acquire the Porter Davis Group,” he said.

“Mr Miglani has not undertaken any due diligence and is unable to complete a transaction in an expedited time frame which is a key requirement of the liquidators.

“We remain in active discussions with a short list of parties in order to find solutions for some

Amit Miglani has approached liquidators about buying Porter Davis outright.

Porter Davis customers, and to otherwise provide clarity to the remaining customers in relation to the status of their build, and options for them to engage with new builders to complete their homes.”

Mr Miglani told the Herald Sun he was “surprised” at the comments.

“There are significant errors of fact in Grant Thornton’s statement,” he said.

“At no stage did Grant Thornton say anything to us about the credibility of our offer and if they need further information, we have everything they may need.

“Grant Thornton has already been told we can meet any timelines that are required.”

Mr Miglani said creditors had a right to demand Grant Thornton’s approach to the sale of the company.

“The home buyers and the subcontractors and the staff of Porter Davis should be the only priority,” he said.

“We have done significant due diligence and there is no evidence to the contrary.

“I do not understand what would motivate a liquidator to try and discredit what may be the best deal for creditors, staff, tradies and homeowners.

“All we are asking is for our proposal to be given proper consideration by the liquidator.”

Mr Miglani narrowly escaped a jail after being sentenced to an 18-month Community Corrections Order after being convicted of misusing his clients’ money while Officer in Effective Control of the now defunct MIG Real Estate.

He pleaded guilty to misuse of a trust account and is currently undertaking legal proceedings to restore his licence.

Before liquidators were appointed efforts to raise funding needed to allow Porter Davis to continue funding failed.

Grant Thornton have since engaged with dozens of parties who have contacted the liquidators expressing various levels of interest in the company’s assets.

Porter Davis Homes was Australia’s 12th largest builder when it collapsed on March 3.

Last week liquidators said they were locked in talks with 20 replacement builders to help finish some of the 1700 jobs left in the lurch by the collapse.

The bid

Mr Miglani, who in 2021 narrowly avoided an immediate jail term after being convicted of misusing his clients’ money, said his offer was backed a conglomerate of investors.

“I’m concerned the liquidator has made public comments in the last 24 hours that indicates that the current proposals before them could result in hundreds of employees without jobs, subcontractors without payment and countless homebuyers in financial ruin. None of this should happen,” he said.

“The liquidator Grant Thornton have acknowledged our offer and they know MIG and our investors are genuine. The MIG offer is fully funded and will result in the full retention of all Porter Davis employees and subcontractors payments will be honoured.

“Homebuyers and subcontractors trusted Porter Davis and our proposal will ensure that those who placed their faith and trust in the company will not suffer.

“We trust and hope that the liquidator will act quickly and sensibly.’’

Grant Thornton, in a statement said: “The building sales process is currently still continuing and as such we cannot comment”.

Mr Miglani said it wouldn’t be in the community’s best interest for Porter Davis to be broken up and “cherry picked by rival building companies”.

“This is the way for the buyers, the subcontractors and the staff to all avoid losing out,” he said.

“This is a solution that we believe no-one else is offering and it’s the solution the community needs.”

Mr Miglani was sentenced to an 18 month Community Corrections Order after being convicted of misusing his clients’ money while Officer in Effective Control of the now defunct MIG Real Estate.

He pleaded guilty to misuse of a trust account and is currently undertaking legal proceedings to restore his licence.

It is believed creditors have not been made aware of Mr Miglani’s offer.

Originally published as Daniel Andrews says he holds ‘very significant concerns’ for conduct of Porter Davis