The directors of failed construction company Nicheliving have saved it from liquidation by buying it back despite being banned from holding a building licence.
Directors Ronnie Michel-Elhaj and Paul Bitdorf are buying back their company after creditors agreed to a $2.7 million deal that will give them cents on the dollar for their debts.
“The creditors will make the decision based upon what measures are in place to give them the best return on their debt,” WA Premier Roger Cook said.
Nicheliving left hundreds of customers in limbo after failing to complete their homes.
Some customers described today’s outcome as “devastating”.
“It is an absolute kick in the guts because we have lost quite a bit of money,” former Nicheliving customer Peter Symons said.
Under the deal, the company would end its legal fight and surrender its building licence for 10 years and the directors would be barred from re-registering under any name.
The directors avoided fines and being pursued by insurers.
About 200 homes remain yet to be completed.
