Geelong builder Waterford Homes owed creditors more than $600k

Waterford Homes owed one Geelong company more than $120,000 before its collapse earlier this year, a new report has revealed. LIST OF CREDITORS REVEALED.

Waterford Homes owed one Geelong company more than $120,000 before its collapse earlier this year, a new report has revealed.

A creditor’s report from liquidator Ben te Wierik, of BTW Advisory, revealed the company owed ex-employees and creditors thousands of dollars.

After the June collapse, 58 creditors were owed $618,748 and 10 homes were under contract at various stages of construction.

The Australian Tax Office and Walker Plaster Supplies were owed the most money, with $111, 253 and $121,541 to be paid back respectively.

Solomon’s Flooring Geelong is owed $48,000, Steve’s Discount Carpets is owed $30,000 and Barwon Timber should be paid back $46,000.

Waterford homes collapsed in June.

The report revealed $15,000 from company bank accounts and $92,000 from the sale of company cars would be put toward the liquidation.

Mr te Wierik told the Geelong Advertiser this week the liquidation was “in progress”.

In addition to its creditors, Waterford Homes also owed two former part-time employees thousands of dollars.

“I estimate the amount owed to company’s employees to total $5,297,” Mr te Wierik wrote.

The estimate covered outstanding annual leave and payment in lieu of notice.

Mr te Wierik also alleged in his report more than $146,000 spent in the six months leading up to the liquidation appeared to show “preferential payments” to certain creditors.

“My preliminary investigations have so far identified payments totalling more than $146,000 during the six month period prior to my appointment which prima facie appear to be preferential payments,” the report alleged.

“These transactions warrant further investigation and I intend to obtain legal advice prior to pursuing recovery action.”

The creditor’s report also revealed the company director blamed supply issues, skill shortages, spiralling costs of material and labour for the company’s collapse.

But liquidators proposed inadequate contract pricing leading to historical trading losses, undercapitalisation and insufficient working capital were also to blame.

Earlier this year Geelong mum Robyn Bartlett revealed she could’ve lost up to $150,000 after the company entered liquidation.

“There seemed to be delays from the word go,” she said at the time.

“The frame is up and it has been left exposed for the last seven months, I don’t know whether it will need to be pulled down or where they will go from here.”

The liquidation is expected to be finalised within the next year.

Originally published as Geelong builder Waterford Homes owed creditors more than $600k