Porter Davis founder Anthony Roberts pumped $20m into company before collapse

The founder of one of Australia’s largest home builders pumped $20m into the business before it collapsed as the CBA is revealed to be owed almost $33m.

The founder of Porter Davis Homes Group, which collapsed in March, pumped more than $20m of his own money into the company before it became Australia’s largest construction company failure in 2023.

A report filed by liquidators Grant Thornton to the Australian Securities & Investments Commission listed 10 secured creditors, including the Commonwealth Bank of Australia, Flexiommercial Pty Ltd, The Australian Steel Company and Chesapeake Holdings, run by PDH founder Anthony Roberts and linked to his thoroughbred breeding business.

The report said the total amount owed to the CBA, across all entities in the group, was $32,939,409. However, the amounts owed by other secured creditors was not revealed but it is believed the final figure could reach $100m.

“Our investigations are ongoing to determine if these debts are cross collateralised across the group,” Grant Thornton said in the report.

Work halted on more than 1700 properties across Victoria and Queensland when Porter Davis collapsed.

Mr Roberts, who is well-known in the racing industry and has operated Chesapeake Thoroughbreds for many years, refused to comment on the liquidators report.

However, it’s understood that the amount owing to Chesapeake stands at more than $20m.

Sources say the amount reflects Mr Roberts pumping his own funds into the building operation over the last 10 months as he attempted to keep the business afloat.

Mr Roberts could receive some recoveries as liquidator has recouped funds from the small of the medium density business and by introducing builders to Porter Davis customers.

But it is too early to say estimate the quantum of any recovery.

The horse breeding business is held at arm’s length to the building company and is not related to the collapse of Porter Davis.

The ASIC report also showed PDH Group had zero assets and had a bank account deficit of $533,664 at the time of its collapse late March. Total debts for PDH Group was $28.88m.

There are concerns that secured creditors like the CBA could get paid out while small unsecured creditors miss out.

Subbies United managing director John Goddard said that the bank was secured and would get paid.

“Subbies are not secured, they won’t get paid. Subbies never do,” he said.

The CBA did not return emails.

A liquidators report to ASIC report also showed PDH Group had zero assets and had a bank account deficit of $533,664 at the time of its collapse.

Porter Davis, which was the 12th largest residential builder in Australia, collapsed at the end of March leaving 1500 unfinished homes in Victoria and a further 200 in Queensland.

The Melbourne-based builder had a further 779 clients who had paid deposits, but where work had not started on their projects when liquidators Grant Thornton was appointed.

Said Jahani, Matt Byrnes and Cameron Crichton of Grant Thornton Australia were appointed liquidators of 14 companies in the PDH Group.

A separate report filed by the liquidators showed the group was in discussions about appointing liquidators for at least a week before its collapse without telling any customers.

The document filed with ASIC by Mr Byrnes showed Porter Davis had engaged Deloitte to help it find liquidators in March.

They made contact with Grant Thornton to ask if the firm could undergo a check to ensure it was “free of conflicts” of interest so it could take on the liquidation.

On Monday it was announced that Melbourne building company Nostra Property Group had secured a deal to buy Porter Davis Homes’ multiple dwelling business for an undisclosed sum.

The company counts some of Australia’s largest developers such as Villawood Properties, Stockland, Lendlease and Frasers Property as its customers. It primarily builds townhouses which are sold off-the-plan by developers.

“This will see a number of jobs preserved, disruption minimised for several existing and future projects, and critically up to 375 homes built for families who have had to suffer enormous stress and anxiety following the collapse of the PDH Group,” Mr Jahani said.

Originally published as Porter Davis founder Anthony Roberts pumped $20m into company before collapse