Nicheliving Group appoints administrators KordaMentha

Troubled builder Nicheliving has called in administrators to wind up its construction companies, leaving creditors scrambling and the owners of unfinished homes worried they have no further legal recource. Kathy Ellis is one of about 200 customers who have been waiting years for their homes to be built. “Everybody knew this was coming but I am surprised it took this long,” she said. Another affected customer, Richard Hamilton, said authorities should have stepped in sooner. “It does confirm what we’ve suspected all along, that Projex was insolvent,” he said. Corporate watchdog ASIC on Thursday that Nicheliving Group had entered external administration and appointed KordaMentha to restructure and manage debts, including a $3.8 million tax bill. Administrators Richard Tucker and John Bumbak have taken control of parent company Nicheliving Holdings, Projex Management and Construction and Rubix Future Building Technology. But Mr Hamilton was outraged that Nicheliving’s development division is not affected and can continue on a “business as usual” basis. “That is disappointing,” he said. “I think most people who have been affected, customers and trades, would prefer they were out of business altogether.” In a statement on Thursday, KordaMentha said it was undertaking an urgent assessment. “The voluntary administrators would like to assure homeowners with contracts with Nicheliving that they can continue to pursue their home indemnity insurance claims to get their homes completed by another builder,” the statement said. Under the Government’s QBE scheme, those payouts are capped at $200,000. The Government had urged home owners with costs exceeding $200,000 to seek legal advice, but Ms Ellis said there is now no point. “It is disappointing,” she said. “This means there’s no point in trying to claim any damages for lost money and the stress and emotional damage we’ve got,” she said. So far, 19 claims have been processed by the Government scheme’s insurer QBE, with a total of $3.537 million paid. Nicheliving gave up its building registration in October, when the State Government agreed not to pursue the company or directors Ronnie Michel-Elhaj and Paul Bitdorf for home indemnity insurance costs. More than 200 homes were left unfinished, but work has continued on a multi-story home in Applecross owned by Mr Michel-Elhaj’s wife. “That’s the bit that makes me angry,” Ms Ellis said. “They can still plan and have assets and their futures are fine.” Mr Hamilton urged corporate watchdog ASIC to investigate Mr Michel-Elhaj and Mr Bitdorf. “They’ve demonstrated that they’re not fit to hold a business license,” he said. “There’s no real consequences in this for (Ronnie), there’s nothing to stop him doing this again.”