Residential builder Inspired Property Group, trading as Inspired Homes, has been placed in liquidation after the second creditors' meeting this morning.
Residential builder Inspired Property Group, trading as Inspired Homes, has been placed in liquidation after the second creditors' meeting this morning.
The update comes a little over a month after McGrathNicol was appointed to as administrators of the Wangara-based Inspired Property Group on April 1.
McGrathNicol administrators Rob Kirman and Rob Brauer will take over the management of the company, as liquidators.
In their report to creditors, the administrators recommended for the company to be placed into liquidation.
"The administrators do not consider it is in the best interests of creditors to resolve for Inspired Homes to enter into the proposed deed of company arrangement," the report reads.
Incito Investments has submitted a deed of company arrangement proposal, with about $300,000 to be invested to fund the administration.
However, the administrators found there would only be a nominal return of $54,000 to unsecured creditors under the DOCA despite an up to $25.5 million distribution in estimated unsecured claims eligible to participate.
The administrators considered the limited amount of trading undertaken by Inspired Homes with the company only having one property development agreement and one non-related employee on the payroll.
In their report, the administrators said recovery actions available to liquidators would be more beneficial than if the DOCA proposal was implemented.
The administrators estimated Inspired Homes to have been insolvent from June 30, 2024 with the insolvent trading claim to total about $3 million.
"Should Inspired Homes be placed into liquidation at the second meeting, the liquidators will undertake further detailed investigations and pursue recovery actions where appropriate and commercially viable to do so," the report reads.
Inspired Homes is one in a string of troubled builders in the state, and a company with customers the state government has vowed to assist.
Earlier this year, Premier Roger Cook and Commerce Minister Tony Buti met with representatives of disgruntled Inspired Homes customers shortly after the new state government Cabinet was sworn in.
Business News understands that the company had up to 100 homes in its construction pipeline when it was placed in administration.
