Paradise Motor Homes sold by administrators, as customers told they don’t own vans they paid for

Administrators of the failed Paradise Motor Homes group have sold it off as customers are told they don’t own vehicles they paid for. Here’s what happens next

Administrators of the failed Paradise Motor Homes group have sold it for more than $2 million, but the move looks unlikely to bring relief to unsecured creditors of the $20m collapse.

The retirement dreams of Paradise customers were dashed when its three companies went into administration in October. Some were owed as much as $400,000 each for motorhomes they never received.

Nine motor homes in various states of completion were set to go to auction. However administrators did not go ahead with it, saying the sale of the group’s assets was likely to recoup more funds for creditors.

Jason Tang of Cor Cordis would not reveal the name of the buyer, citing commercial confidentiality, but told creditors it was an operator of a Victorian motorhome company who wanted to expand into Queensland.

Paradise Motor Homes in Yatala is in administration. Picture: Richard Gosling

Despite paying hundreds of thousands of dollars for the motorhomes, customers have been told they do not own them as they are considered assets of the collapsed group.

One couple, owed $260,000, has been left without a home after giving up everything to live in a Paradise vehicle which never arrived.

“That’s our life savings, we don’t have anything else,” the tearful woman told the Bulletin last month.

“We’ve retired, I just stopped work, we don’t have a home now, we’re homeless.

“I’m just praying to God that He has another plan for us.”

Unsecured creditors, including paying customers, are at the back of the queue when it comes to getting any money back, with various finance companies holding security over the unfinished motor homes.

Mr Tang said there was no way of knowing what funds, if any, unsecured creditors would receive until the claims of secured creditors had been assessed.

Director Shannon Burford, 47, who pulled a $200,000-per-year-salary from the business, lives in a million-dollar Hope Island home owned by his wife Josephine Burford. She is a part owner of Paradise Motor Homes and its former general manager.

Ms Burford was paid a salary of $168,000 per year.

Shannon Burford, director of Paradise Motor Homes

Josephine Burford.

Answering questions at the most recent creditor meeting, Mr Tang said he would look into whether Ms Burford was a de-facto or shadow director of Paradise as part of his investigations.

Creditors of the group’s manufacturing arm, PMH, voted to wind up that company.

At the same meeting creditors blocked motions to pay almost $140,000 in remuneration to the administrators.