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Bond Homes

Bond Homes Liquidation Leaves Building Suppliers With Unpaid Debts

According to liquidators of Ballarat-based residential builder Bond Homes, up to $700,000 of debt owed to building suppliers is likely to go unpaid.

Bond Homes, a long-established home builder, went into voluntary administration in late July 2023, eventually liquidating in early September.

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The company, known for constructing transportable homes at its Ballarat yard, had been in business for nearly 30 years. 

Its financial troubles forced the company to cease operations, and Bond Homes employed 20 full-time staff and had 21 ongoing home builds at the time of liquidation. 

Administrators in charge of winding down the failed company have been diligently selling off assets, including a display home, to settle the company’s outstanding bills. 

The displayed home was sold for $236,000 at auction on Friday afternoon, while the builder spent just over $200,000 to build it, according to liquidator Nathan Depper from insolvency firm Worrells. 

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Mr Depper told ABC that up to $700,000 owed to suppliers would likely remain unpaid.

“I think any debt is relatively significant and impacts those businesses that are owed money, regardless of whether it is a smaller or larger debt,” he said. 

“If they don’t receive any payment for it, it is a 100 per cent loss they have suffered, and it has an impact on them.” 

The recoverable funds from these sales are far from sufficient to cover the accumulated debt.

Bond Homes’ asset value has been assessed at approximately $300,000, which will be prioritised to pay employees who are regarded as priority creditors. 

This leaves little to no recourse for the building suppliers, who are unlikely to recover their substantial debts.

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