This article is from the Australian Property Journal archive
LIQUIDATORS of Porter Davis have thwarted a Melbourne business’s attempt to buy the collapsed home builder outright, saying it did not believe the bid was credible.
MIG & Sons’ offer included keeping all Porter Davis staff employed, subcontractors and completing all contracted jobs. Porter Davis collapsed with 1,500 homes under construction in Victoria and 200 in Queensland, and making more than 400 staff redundant.
Liquidators Grant Thornton told a packed webinar with distressed customers that the 779 homebuyers who paid deposits without a permit being granted and construction starting on their home may have lost their hard-earned savings, and Victorian Premier Daniel Andrews has said Porter Davis could be facing heavy penalties if it left customers uninsured before going bust.
CEO of MIG & Sons, Amit Miglani, told 3AW he had been in discussions with other building companies that could help finish the works, and that Porter Davis management should be kept on.
“Keeping them alive, that’s probably the best bet at the moment,” he said.
Miglani said his motivation was that the company was “one of the biggest assets” in the country”.
“The community is the one who’s going to suffer at the end of the day,” he said.
“There’ll be a lot of losses, there’ll be a lot of life savings gone.”
But Miglani’s bit was rejected by Grant Thornton within 24 hours.
“While we have no reason to doubt Mr. Miglani’s intention, we do not believe this is a credible offer to acquire the Porter Davis Group,” a spokesperson for Grant Thornton said.
“Mr. Miglani has not undertaken any due diligence and is unable to complete a transaction in the expedited timeframe which is a key requirement of the liquidators.”
“We remain in active discussions with a short list of parties in order to find solutions for some Porter Davis customers, and to otherwise provide clarity to the remaining customers in relation to the status of their build, and options for them to engage with new builders to complete their homes.”
Miglani hit back with another statement on Monday saying, “At no stage did Grant Thornton say anything to us about the credibility of our offer and if they need further information, we have everything they may need”.
“Grant Thornton has already been told we can meet any timelines that are required.”
Grant Thornton has previously indicated that clarity on the outcome of discussions could be expected this week.
In 2021, Miglani pleaded guilty to taking almost $100,000 out of his real estate agency’s trust account and spending it on personal items. He was sentenced to a community corrections order with conviction for 18 months.
Magistrate Tara Hartnett said Miglani’s guilty plea spared him jail.
