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Liquidated project management company offered worthless building guarantee

November 13, 2015 by SPCS Leave a Comment

A Canterbury man’s dream of a luxury barn-style home has been shattered after the company supposed to build it went into liquidation, leaving him $225,000 out of pocket.

Barry Jones thought Encell Group Ltd could build his dream home in Rolleston, south of Christchurch, but the project management company was now in liquidation.

Days after Encell Group went bust, Jones found out the company, directed and owned by UK national Paul Encell, had never registered with the Master Builder scheme that would have provided some financial protection when the project fell through.

Jones said he had almost paid for the entire build, but all he got was a concrete pad and frames. He believed he was about $225,000 out of pocket.

"I would have never started this project if I couldn’t have afforded it, and now I’m robbing Peter to pay Paul and I’m dead scared I’m not going to be able to pay people.

"I paid the money to pull up the drive, push the button and drive into my completely finished home."

Encell Group was put into liquidation by the High Court on October 29 on an application by building supply company Carters.

Eight days before the company was liquidated, Encell set up two other companies: Hungerford Homes Ltd and Creative Homes Ltd.

For a company that had taken on only two projects, Encell Group had "a disturbing level" of affected creditors lining up, appointed Ernst & Young liquidator Rhys Cain said.

Cain said the company’s debt was into the hundreds of thousands, but more details would be available in his December 2 report.

For full story by Myles Hume published 13/11/15 go to:

http://www.stuff.co.nz/business/73843314/liquidated-project-management-company-offered-worthless-building-guarantee

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