A Morwell-based company that offered custom-designed homes to “capture the essence of Australian living” has gone into administration.
Alternate Dwellings, which had its head office in Tarwin Street and a display centre in Officer, ceased trading after administrators from Vince & Associates were appointed on Friday.
Administrator Peter Vince told The Express on Tuesday investigations were still in their early stages, so the administrators had not yet “reached any firm views” on why the company became insolvent.
Mr Vince said there were “quite a number of business assets and designs” at hand.
“While we haven’t been able to carry on the business, we’ll be seeking expressions of interest for those assets,” he said.
A report to creditors estimated Alternate Dwellings had 16 employees and owed about $1.6 million to ‘unsecured creditors’ that may include tradespeople and suppliers.
It appears there are 36 ‘contingent creditors’, which include customers of the company with incomplete or defective works.
A creditors’ meeting will be held Wednesday, 2 November at 11am at the Vince & Associates offices, 51 Robinson Street, Dandenong.
This will be to confirm the administrator’s appointment and determine whether a committee of creditors should also be appointed and, if so, who the members should be.
A second meeting will take place within 36 days of when the company went into administration, to vote on the future of the company.
The administrators will update creditors on their findings following an investigation into the conduct and affairs of the company before it entered administration.
Mr Vince said many creditors had already contacted the administrators, and encouraged homeowners who had entered contracts to approach the Victorian Managed Insurance Authority.
Builders in Victoria are required by law to take out domestic building insurance, also known as builder’s warranty insurance, for work valued at more than $16,000.
This provides cover to homeowners for incomplete or defective building work.
The VMIA has offered domestic building insurance in Victoria at the direction of the State Government since May 2010.
For more information about the scheme and how to make a claim, visit www.dbi.vmia.vic.gov.au or phone 1300 363 424.
