Signs 'not good' for Signature Homes creditors

ANDREW GORRIE/Dominion Post

HOUSING BOOM: The implosion of Signature Homes has left creditors out of pocket, but Jessica Hutchings and her son say construction on their dream home is again on track.

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The collapse of Wellington's Signature Homes franchise has cost the parent company "hundreds of thousands" to fix, and creditors owed more than $1 million are unlikely to get their money back.

When Signature franchisee Pinehill Project Management was put into receivership in May Jessica Hutchings was left with a concrete slab instead of a dream home in Upper Hutt.

She said Signature Homes had kept its word and set her up to get a new house. "I'm pretty happy."

Ms Hutchings said new quotes to build the home she had agreed to were up to $60,000 dearer than the original contract she signed with Signature.

General manager Phillip Howe said the company was still committed to guaranteeing the original quotes for all clients left out in the cold, including making up the difference for new building contracts.

"I don't have the total yet but (it has cost) hundreds of thousands of dollars," he said.

Four clients were being looked after under their Master Builders guarantee and the remaining five were getting new building agreements to complete their home.

Signature Homes would oversee the process till the customers got the house they had originally agreed to.

Receiver Howarth Corporate had delayed clients terminating their original contracts with Pinehill while it sought to recoup as much money as possible.

Norman Vialle said the receiver was still asking him for $50,000 for his house, which was due to be completed in October under his Master Builders guarantee, almost a year late.

"The most important thing is getting into our house so we can stop paying rent and a mortgage at the same time. We are losing so much money right now," he said.

He would probably have to shell out more in legal fees to fight the receiver's demands in court.

Horwath Corporate spokesman Steve Lawrence said it was still looking at money due from three Pinehill customers but the majority had been released from their contracts because there was no equity left in them.

The receiver would issue a report this week but it was likely to disappoint those Pinehill had left in the lurch. "It's not looking good for the creditors."