The liquidator handling the collapse of construction company Porter Davis has shut down a property firm's buyout bid, saying it does not believe the offer is credible.
Melbourne-based property firm MIG Sons & Co said it had offered to buy the home builder outright, keeping all staff employed and completing all contracted jobs.
Porter Davis had about 1,700 homes in various stages of construction at the time its collapse was announced, liquidator Grant Thornton has said, including 1,500 in Victoria and 200 in Queensland.
Last week, the liquidator said about 250 of those homes were near completion. Other customers, who had paid deposits but whose work was yet to begin, have been warned they may be without insurance and risk losing their deposit.
But despite MIG Sons & Co CEO Amit Miglani describing the company's takeover offer as "genuine", Grant Thornton has ruled it out.
A Grant Thornton spokesperson said it had engaged with "dozens of parties" interested in the collapsed firm's assets, but "while there is genuine interest in parts of the Porter Davis Group, the liquidators have not identified any parties that are willing and capable of taking over all builds for Port Davis customers as part of a single sale transaction".
The spokesperson commented directly on the interest from MIG Sons & Co.
"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," they said.
"Mr Miglani has not undertaken any due diligence and is unable to complete a transaction in the expedited timeframe which is a key requirement of the liquidators."
The spokesperson said liquidators were continuing to discuss solutions for parts of Porter Davis and was hoping 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 a new building of their choice," they said.
Offer spurred by 'emotional attachment'
Mr Miglani told the ABC on Monday morning he and his partners put in an offer almost immediately after the collapse of Porter Davis, placing a bid just two business days after the liquidation was announced.
He said while there was a financial aspect to the offer, the chance to do something for the community carried a lot of weight in the decision.
"It's more towards the emotional attachment, to the houses, to the jobs, to the community right there," Mr Miglani said.
The MIG Sons & Co founder said retaining Porter Davis staff would be crucial for maintaining continuity on construction projects that are underway.
In a second statement later on Monday, Mr Miglani said he was surprised by the liquidator's comments about the credibility of his company's offer, and asked that the proposal "be given proper consideration".
"At no stage did Grant Thornton say anything to us about the credibility of our offer and if they need further information, we have everything they may need," he said.
"Grant Thornton has already been told we can meet any timelines that are required."
In 2021, Mr Miglani pleaded guilty to two charges, one related to withdrawing money from a trust account and one of fraudulently converting money from a trust to his own use.
He was sentenced to a community corrections order with conviction for 18 months.
Mr Miglani said the court proceedings had coincided with a difficult divorce, and that he was taking steps to restore his cancelled real estate licence.
When quizzed on Porter Davis, Victorian government MP Gayle Tierney declined to comment on any possible firms who may be bidding for the company.
"In terms of those that bid for the company, that is really an issue between the liquidator and those that are involved in the bidding. It has very little to do with the government," Ms Tierney said.
"We are keeping a fairly close eye on the whole situation, for obvious reasons."
Ms Tierney said the state government would have more to say on the situation "in the next little while".
