2 May 2017

Building firm collapse leaves homeowners at a loss of $1.7m

2:14 pm on 2 May 2017

An Auckland building company has been put into liquidation, leaving 132 homeowners and contractors at least $1.7 million out of pocket.

Building framing at a housing construction site in an East Auckland suburb.

Photo: RNZ / Claire Eastham-Farrelly

Point to Point Holdings, owned by sole director Stephen Foley, was building 30 homes across Auckland when it folded in January.

Liquidator Derek Ah Sam, from the accountancy firm Rodgers Reidy, said it was "very unlikely" people would get their money back.

"As of today we've had $1.7m worth of creditors' claims but we are aware of other creditors with personal guarantees that will go after Mr Foley."

Another of Stephen Foley's building companies had collapsed in the past, he had previously been made bankrupt and was a banned director for almost three years, Mr Ah Sam said.

It was likely more claims would be made which could bring the total amount owed to around $2m, he said.

About half the homeowners had insurance that should guarantee their homes were completed by another company, however.

Mr Foley has not returned calls from RNZ for comment, but he told the New Zealand Herald the collapse of Point to Point Holdings was due to an employee theft in combination with an increase in building costs that could not be passed onto clients because of fixed-priced contracts.

Seperately, property company planning to build 900 homes in Rolleston, Canterbury was also put into liquidation in April.

FCL Holdings owed $13m to creditors according to reports by Fairfax Media.

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