‘Abysmal’: Builder collapses with $13m debt, some customers claim they’re not insured

A Victorian family is in ruin after a deal that was meant to set them up for life. Instead, everything came undone in just eight days.

EXCLUSIVE

A building company that recently collapsed owes creditors in excess of $13 million while a handful of customers claim they are set to lose the sum total of the money they paid as a deposit.

At the end of last month, the Victorian Supreme Court ordered residential builder Apex Homes Australia Pty Ltd to go into liquidation.

A concreting business lodged a winding up application against the building company earlier this year over a $46,200 debt dating back to October 2023 and five other creditors including the Commission of State revenue joined the case.

Matthew Blum of insolvency firm BDO was appointed as the liquidator and revealed to news.com.au this week that initial estimates have placed the company’s debts at more than $13 million.

Several customers paid substantial lump sums to Melbourne-based Apex Homes Australia as a deposit but they claim they have since learned they did not receive domestic building insurance.

As a result, they are not covered under a last resort insurance scheme and could lose the whole amount.

“It’s left us in a bit of a hole. We’re facing housing uncertainty. It’s just all up in the air,” Jonathan Dhondee, who paid $41,000 as a deposit, told news.com.au.

Mr Dhondee says his fortunes would be different if Apex Homes had collapsed eight days earlier.

The Dhondee family forked out $41,000 to the now collapsed builder.

Mr Dhondee and his wife, in their mid-40s, signed a contract with Apex Homes in 2022 for their family’s dream home.

The dad handed over $41,000 to the builder but realised he did not receive a domestic building insurance (DBI) to go with it.

“I’ve been pestering them to obtain the DBI but they gave me the run-around for months,” he said.

Then there’s also Deborah Kho and her partner, who have paid a $16,000 deposit, also don’t appear to be covered by insurance.

She told news.com.au she has lodged herself as an unsecured creditor in the liquidation case.

News.com.au understands at least half a dozen others are in a similar predicament.

Rubbing salt in the wound is the fact that the Victorian government has rolled out a number of rescue schemes for victims of collapsed builders – but they missed the deadline by just eight days.

The Victorian government announced a slew of changes last year in the wake of the collapse of major builder Porter Davis, which failed to take out insurance for hundreds of aspiring homeowners who had paid deposits.

A government rescue scheme fully reimbursed customers of Porter Davis and was then expanded to others victims of failed building companies which had collapsed in the same period of time.

Unfortunately for customers like Mr Dhondee and Ms Kho, this scheme was expanded until February 20, but Apex Homes went bust on February 28.

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Deborah Kho also claims she doesn’t have insurance.

Their empty site.

“It would be unfair that the government extend the scheme until February and not include

Apex Homes which collapsed a few days after,” Mr Dhondee lamented.

Both Mr Dhondee and Mr Kho have petitioned members of parliament for help.

James Newbury, MP for Brighton, has contacted the Premier directly and the coalition raised the issue in parliamentary minutes last week.

Victoria’s premier Jacinta Allan and Assistant treasurer wouldn’t comment to news.com.au on whether they would extend the scheme.

A Victorian government spokesperson said “The Victorian Building Authority is currently investigating reports that Apex Homes failed to take out Domestic Building Insurance”.

Trashed sites of devastated Apex customers.

Another languishing Apex Homes site.

Apex Homes is in liquidation.

The liquidator, Mr Blum, said it was too early for him to know the number of creditors or projects impacted, or whether insurance had been taken out for deposits.

Creditors are still lodging proof of debt claims so the $13 million figure could end up being higher.

He has not yet received the books of record from the company’s directors and said as such, isn’t in a position to comment further.

News.com.au has contacted the management of Apex Homes for comment.

News.com.au previously reported that Apex’s telephone line was disconnected in the days leading up to its collapse and a port-a-loo had been removed from a build site.

One customer described Apex’s communication with them as “abysmal”.

“It’s a horrendous experience,” another previously said.

An Apex Homes spokesperson previously told news.com.au that they had been struggling to pay debts “since Covid” and that it had been a “turbulent” and “difficult” three years.

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