Porter Davis liquidators fail to identify buyer, knock back MIG & Sons bid

The liquidators of collapsed homebuilder Porter Davis Homes Group (PDH Group) have failed to identify a buyer despite engagement with dozens of interested parties, including a bid from MIG & Sons Co and its CEO founder Amit Miglani which they claim is not credible. 

After an announcement on Thursday that more than 250 homes out of Porter Davis' 1,700 under construction would likely qualify for occupation certificates with more than 20 builders offering assistance to complete builds, liquidators at Grant Thornton yesterday stated they had still not identified any parties that were willing to finish all homes for customers as part of a single transaction.

Regarding Miglani's bid that was reported by various news outlets, a Grant Thornton spokesperson claimed the former Melbourne real estate agent would not be able to get a deal over the line within the short timeframe required.

"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," the spokesperson said.

"Mr Migliani has not undertaken any due diligence and is unable to complete a transaction in an 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."

Porter Davis had been forecasting $555 million in revenue this financial year before the decision was made last month to place 14 out of 15 subsidiaries into liquidation, with the exception being Englehart Homes which was acquired in 2021 and continued to operate in its own right.

With around 1,700 homes under construction - predominantly in Victoria but also in Queensland - and a further 770 contracts signed for projects that were yet to begin, under control of liquidators Porter Davis has retained a "skeleton staff" of 50-60 people after 400 employees were made redundant.

There have been numerous cases of vandalism on sites which drew the ire of liquidators in a customer meeting last week, where it was also revealed that some customers were technically not covered for state-backed insurance warranties due to Porter Davis' practice of filing for insurance with state bodies only once works had commenced, even if deposits had been received prior.

The spokesperson expects discussions around sales of parts of the group could be finalised within the next seven days.

"We are continuing to discuss solutions for parts of the Porter Davis group and are aiming to be in a position to finalise those discussions within the next week. We also hope to provide further clarity to customers regarding the next steps in completing their build - which for many customers is likely to involve engaging with a new builder of their choice," the spokesperson said.

The liquidators expect that in cases where Porter Davis is unable to offer a handover under the current contract, they will be able to introduce customers to replacement builders within the week to discuss how their homes may be completed. That said, Grant Thornton also recommends customers seek their own legal advice to ensure they "do not inadvertently compromise their entitlement to insurance cover" under the Victorian Managed Insurance Authority (VMIA) or the Queensland Building and Construction Commission (QBCC).

"We appreciate this is a stressful time for all PDH stakeholders and we thank you for your continued patience while we work to find alternative options and possible solutions for customers," the spokesperson said.