Company had 30 houses under construction
Insolvency specialists McDonald Vague have announced a payout of 20c in the dollar to unsecured creditors of Paramount Homes Ltd, which went into liquidation on 5 November 2002.
Liquidator Graeme McDonald said the company had about 30 houses under construction, mostly in West Auckland, when it collapsed. These included homes where the commissioning party owned the land, and homes where Paramount owned the land and was developing the sites.
The liquidators sold sections owned by the company, settled with some owners and completed some contracts during the past 12 months.
“We have collected about $1 million in the past 12 months, and are therefore able to pay out 20c in the dollar to unsecured creditors. Clearly, in a liquidation, that’s a very successful outcome. Still further money may be paid out as the liquidation progresses.”
Secured creditors have been paid in full.
Mr McDonald said unsecured creditors were owed about $2.7 million. A key issue was that the company did not have the capital base to support developments it had undertaken, and had underquoted on construction costs.