Uncertainty still looms for companies and employees who are owed money from the collapsed builder Kleev Homes.
The liquidation efforts to settle the millions in debt has so far only estimated to only recover a few tens of thousands of dollars.
In early October, liquidator for B&T Advisory, Travis Pullen published the Statutory Report to creditors – a mandatory update on the ongoing efforts to settle accounts with the collapsed company.
This comes three months after Kleev Homes, a builder which started in Upper Beaconsfield, went into liquidation on 5 July in an abrupt fashion that saw their website, social media and phone service switch off line with the announcement.
Kleev Homes left $3.5 million in debts. Almost $1.2 million have been covered in insurance and collateral, leaving $2.3 million owed to workers and unsecured business.
So far, Mr Pullen’s findings show an estimate of $44,000 that could be recovered from the assets and credits left by the builder.
While this could not cover the list of priority creditors, individuals, employees, which is $278,000 in outstanding wages, annual leave and various outstanding entitlements.
Kleev Homes’ own report detailing their outstanding debts and assets, given to Mr Pullen, estimated $830,000 in assets.
Though Mr Pullen has dismissed some assets in the report as unrecoverable, there are many yet to investigate.
Mr Pullen gave no definitive answer yet as to whether creditors would or would not have their claims fulfilled.
“Creditors will note that there remains several potential avenues for further recovery in this matter, and that substantial further investigation is required in relation to potential claims,” Mr Pullen reported.
“Accordingly, at this stage, I am unable to advise as to whether a dividend will be paid in the liquidation.”
Financial information provided showed a rapidly bleak situation arose for Kleev Homes in the years leading up to the collapse.
The 2021-22 financial year the builder’s equity was running just even with $2 million in assets and $2 million in liabilities.
By the end of the 2022-23 financial year, only a month before collapse, assets were run down to $680,000 with a ballooning debt of $3.4 million.
By the date of the liquidator’s appointment, the sole bank account for this company, which at its peak was turning well over $10 million in income yearly, held a balance of $807.
The number of all creditors is in the several hundreds, individual debts ranging from a few hundred dollars to hundreds of thousands of dollars.
AAA Advanced Windows, a window supplier in Hallam is owed $117,000 by Kleev Homes, while Anker Concreting in Cranbourne is listed as owed $55,000.
Creditors such as these may be waiting for some time to get a definitive answer, as Mr Pullen estimates the liquidation of Kleev Homes will continue for six to twelve months.
