Apartments and townhouses are being developed by DDL but receivers have taken over the project after financial trouble. Video / Michael Craig
The company's logo was "delivering dreams", but 263 creditors are claiming millions from a civil contractor which was working on nearly 200 new south Auckland homes.
Crown and council-owned entities, lawyers, telcos, national enterprises and many private contractors want money from the insolvent civil contracting business DDL HomesCentral.
That business was working on around 180 new apartments, stand-alone and terraced homes at Flat Bush when its owner called in liquidators who listed those wanting money.
Joint liquidators Grant Reynolds and Pritesh Patel's first report was out on Friday. DDL Homes Central was working on the big project at 397 Ormiston Rd, Flat Bush.
It is owed $18 million by related businesses which failed a few months ago, causing wider-spread fallout in the sector.
In turn, the newly-liquidated company owes millions to that substantial list of 263 creditors. No predictions of how much can be recovered have been given so far, nor has the possible shortfall to secured and unsecured creditors.
Crown entities claiming money are listed as Inland Revenue and Accident Compensation Corporation. Inland Revenue is a preferential creditor, owed an estimated $900,000 in GST. Employee claims are listed at $161,000 because the business employed 75 staff, the liquidators said. Those people were let go during the winter when receivers were appointed to two related DDL companies.
Council entities listed as creditors are Auckland Council and Auckland Transport.
National businesses on the creditors' list include Vector of Carlton Gore Rd in Newmarket, Plumbing World of Central Park, Waste Management of East Tāmaki, Bunnings of Manukau, Mercury NZ of 33 Broadway in Newmarket, Vodafone in Auckland, Carters in Onehunga, Holmes Fire of Madden St in the Wynyard Quarter, Hynds Pipe Systems on East Tāmaki, Chorus New Zealand of the Aon Centre in Wellington.
A Vector spokesman said that the business was not now owed any money.
Portacom New Zealand of Penrose, Mico New Zealand owned by Fletcher, Mitre 10 Mega of Albany, Hire Plants, Green Gorilla, JJ Waste & Recycling, Kiwi Hire and Sales, Komatsu Australia of Fairfield in New South Wales, Laminex of Fletcher Building's headquarters at 810 Great South Rd in Penrose, Hawkeswood Civil, Manukau Quarries at Beachlands and Natural Habitats Landscapes of Mt Wellington are other creditors.
"Delivering dreams" said DDL's sign. Photo / Michael Craig
Stihl Shop of Harris Rd in East Tāmaki, Rentokil, Trade Me and St Johns Ambulance of Ellerslie and Fletcher's PlaceMakers listed at its global headquarters are just some of the others.
Legal businesses listed as creditors include Steindle Williams Legal of Grey Lynn, Chapman Tripp of level 34 in the new PwC Centre in Auckland CBD and Dale Duffy Barrister of the General Building on Shortland St.
DDL Construction, a related party, is also a creditor.
Subcontractors who worked with concrete, on bathrooms and kitchens, supplied landscaping, doors, steel, cleaning services, glass, roofing, plastics, portacom structures, electrical and surveying services also appeared on the list.
The company being liquidated worked on this housing project at Flat Bush. Photo / Supplied
"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.
The latest liquidation was at owner Baljit Dheil's request. It is the latest in a string of related-party business failures, two other companies hitting financial strife after working on the Flat Bush housing scheme.
The receivers of two associated businesses said during the winter that they had appointed project managers and consultants to complete their review of the current status of the projects.
Deposits remained safe, people were reassured by the receivers a few months ago.
Around that time, buyers expressed concern. In early June, they fretted about the receivership of two development businesses involved in the construction of new homes.
Receivers have continued to keep buyers updated on the situation with the DDL businesses.
