Home builder Wincrest emerges from administration

Sydney-based home builder Wincrest has become the latest collapsed company to emerge from administration, with creditors voting to approve a deed of company arrangement that will see the company pay creditors $4.7 million by the end of 2011.

Wincrest, NSW’s 12th largest building company, was placed in administration in late January after collapsing with debts of $12 million.  

The company has 103 homes under construction, with a further 90 in the pre-construction phase.

Under the deed of company arrangement, Wincrest will contribute to a deed fund for the next three years. Unsecured creditors will receive a dividend of around 37c in the dollar.

Wincrest chief executive Michael Caruana said yesterday the company was back on track.

“We are delighted to have rescued the company, injected fresh capital and new operating systems to deliver new home to our existing customers.”

But the downturn is still cutting a swathe through the sector.

Yesterday, liquidators were appointed for Sunshine Coast builder Miller homes, which reportedly owes $1 million. 

And creditors of collapsed NSW builder Westminster Homes will meet today, a week after the company was placed in administration. It has 100 homes under construction and another 150 in the planning phase.

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