Apartments and townhouses are being developed by DDL but receivers have taken over the project after financial trouble. Video / Michael Craig
A civil contracting company that employed 75 staff for a large-scale South Auckland terraces and apartment housing scheme has gone into liquidation and all employees were let go during the winter.
On Friday, Grant Reynolds and Pritesh Patel released their first report on DDL Homes Central, which was working ona 180-home project at 397 Ormiston Rd.
The company is owed $18 million by related businesses which failed a few months ago, causing wider-spread fallout in the sector.
In turn, DDL Homes Central owes millions to a substantial list of 263 creditors, all named in the new report out last week.
"I've never seen a list of creditors this long," said one accountant considering the financial fallout from the failure.
The 75 staff were working in administration, project management, site management, as electricians, plasters, painters, plumbers and in other trades. They were let go around the middle of this year when the two other companies went into receivership and buyers expressed dismay.
DDL advertised itself as "delivering dreams" and homes were pre-sold with 10 per cent deposits paid.
The liquidation of the company was at owner Baljit Dheil's request. It is the latest in a string of related-party business failures, hitting financial strife after working on the Flat Bush housing scheme.
The project was meant to deliver dreams but that's not how buyers feel. Photo / Michael Craig
Buyers who had paid deposits have complained about late delivery, worried about when their places will be finished and to what standard but the receivers have issued reassurances in the past few months.
Reynolds and Patel's first report said companies associated with DDL Homes Central owed it around $18m for construction work undertaken on the sites.
Related parties DDL Homes Ormiston 2020 and DDL Homes Ormiston owe $18m to the civil contractor for work carried out at sites for more of the new homes in terrace and apartment configurations, the first report said.
The October 7 report on DDL Central said related parties had assets available of $22m. Unsecured creditors are owed $4m by DDL Homes Central but what assets are available is listed as yet to be assessed or ascertained.
DDL Homes Central was incorporated in 2018, had registered offices at 344 Great South Rd, Hunters Corner and its sole director and shareholder was Baljit Kaur Dheil of Redoubt Rd, Flat Bush.
Creditors include Inland Revenue, Mercury NZ, Mitre 10 Mega, TradeMe, the Accident Compensation Corporation, Auckland Transport, Auckland Council, Royal Wolf, lawyers Chapman Tripp, Chorus NZ, Carters, Rentokil and Scentre Shopping.
In June, the two other DDL companies went under. But that was not the first trouble. Last year, vandals hit that business when a 20-tonne digger was used to attack an almost-finished $675,000 home.
Financier Vincent Capital put DDL Homes Ormiston and DDL Homes Ormiston 2020 under the control of receiver Neale Jackson and Brendon Gibson of Calibre Partners.
They have since reassured buyers their homes would be completed and delivered to them.
In July, the Herald reported creditors of DDL Homes Ormiston and DDL Homes Ormiston 2020 (in receivership, liquidation and voluntary administration) claiming $55.7m, according to reports from insolvency experts.
Vandals attacked a new $675,000 home at Ormiston. Photo / supplied
But those experts running the businesses involved in the big Flat Bush scheme on Ormiston Rd say it's too early to say who will get what money - if any.
A schedule of creditors from liquidators Baker Tilly Staples Rodway Auckland shows 34 businesses want money.
Auckland Council, Auckland Transport and Watercare Services are on the creditors' list. Authorities and utilities are owed money by housing developers for building consents and resource consents, when they do regular compliance inspections, pass stages of work and for reserve contributions.
Watercare charges for installing infrastructure like meters and AT charges for roading and footpath physical works.
Auckland Council said: "We charge these fees if the new development requires us to provide new or upgraded infrastructure for transport, footpaths, roads and intersections, parks, park facilities and sports grounds, drainage systems and stormwater mitigation and community facilities."
