Another NSW home builder collapses

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The woes of the building sector are showing no signs of easing, with another privately owned NSW-based home construction company collapsing.

Hall Chadwick was yesterday appointed voluntary administrator of Holmwood Builders, which has turnover estimated at $40 million. It trades as Procorp.

The Procorp group has 50 employees, 500 creditors and offices in Sydney, Newcastle, the South Coast and Albury.

Hall Chadwick is conducting an “urgent assessment” of Procorp’s business affairs with a view to releasing a report to creditors in about a week, Hall Chadwick partner Domenic Calabretta said.

The administrator was trying to work out “who are the creditors, customers and employees”.

“Further detailed information will be provided to creditors in the next few weeks regarding the administrators’ recommendation as to the future of Procorp,” Mr Calabretta said.

The Australian and Securities & Investment Commission statistics had so far this year recorded the most insolvency appointments since the 2008 Global Financial Crisis, he said.

NSW topped the list of Australian states for insolvency appointments this year, Mr Calabretta said.

The construction industry has been hit hardest, with key players such as Kell & Rigby and Southern Cross collapsing.

This would lead to further pain for service providers and subcontractors who had lost big sums of money in large corporate failures, Mr Calabretta said.

NSW Fair Trading Minister Anthony Roberts said every support would be offered to consumers affected by the collapse.

The exact number of homes under construction was still being determined but Fair Trading understands between 80 and 100 dwellings across Sydney, the Hunter, South Coast and Riverina could be affected, Mr Roberts said.

Fair Trading is in contact with the Administrator and the Home Warranty Insurance Fund.

“Fair Trading is ready to respond and assist the affected consumers while also working with the administrators and insurer to determine the best options for all parties as quickly as possible,” Mr Roberts said.

“Home buyers should have been given a Home Warranty Insurance Certificate by Holmwood Builders Pty Ltd shortly after they entered into the building contract and that certificate will identify their insurer,” Mr Roberts said. “Consumers who have signed a contract with Holmwood Builders are advised to contact the insurer immediately.

“Any subcontractor or supplier who believes they are owed money by the companies should lodge a proof of debt, along with supporting documentation, to the administrator,” Mr Roberts said.

Newcastle Herald

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