ASSETS of the ProCorp group are expected to be offered for sale soon because all associated companies have been placed in liquidation.
This comes as the NSW Home Warranty Insurance Fund — the government insurer in such cases — has negotiated a deal with Sekisui House to finish about 90 homes being built by ProCorp Builders, otherwise known as Holmwood Builders.
Sekisui House is part of a major Japanese building company that bought the AV Jennings operations.
Homebuyers will be asked to transfer their contract to Sekisui House and will be required to pay to them all funds due under their ProCorp contract.
The fund will pay the agreed shortfall to Sekisui House.
“No homeowner offered this method of settlement will need to pay any more than they would have paid to Procorp,” the fund said yesterday.
“Sekisui House will also rectify defects already identified or discovered on recommencement of construction.”
The full extent of the ProCorp collapse is still unclear.
Building subcontractors and other unsecured creditors owed several hundred thousand dollars between them are unlikely to get any of their money back, the liquidators said.
Sole director Michael Everard placed the companies into voluntary administration on November 13.
Chartered accountants Hall Chadwick then became administrators.
Creditors’ meetings were on December 14 simultaneously in Albury, Sydney, Nowra and Newcastle areas where homes were being built.
As a result, Hall Chadwick partners were appointed liquidators and told to wind up the four companies.
As well as ProCorp Builders (Holmwood), two other companies handled property sales and property management respectively and the fourth entity was known as ProCorp Systems.
Liquidators Brent Kijurina has since advised creditors that they will proceed with realising the assets while also investigating the affairs of the company before the collapse.