Failed companies behind home building firm owe about $2.5m
Tuesday, 14 January 2025
The first liquidator’s reports into companies associated with JNJ Homes show creditors are owed more than $2.5m.
Liquidator Brenton Hunt says in the reports it’s unlikely there will be money to pay creditors.
Creditor Luke Adams wants a full investigation of the companies.
Failed companies behind controversial house building business JNJ Homes owe creditors more than $2.5m, but there are virtually no funds available to pay them, a liquidator’s reports reveal.
As reported by Stuff, JNJ International Investments, JNJ Construction and JLF Unlimited were voluntarily put into liquidation before Christmas by director and shareholder Zuyu Huo, also known as Jackie Huo.
JNJ Homes is a trading name only.
Stuff revealed how tradies across Christchurch, as well as property owners with unfinished homes, were chasing the business for payment, even turning up at Huo’s house.
We also revealed how, in at least two cases, it allegedly took payment for foundations it said it was about to pour, but never did.
Brenton Hunt of Insolvency Matters has now released his first reports into the three associated companies.
The report into the main company, JNJ International Investments, shows that unsecured creditors are claiming $1.3m. More than 80 claims have been lodged, including by dozens of Christchurch tradies.
On top of that, the report says, the company owes $120,000 in wages and holiday pay and $540,000 to IRD.
Only $50,000 was available for preferential creditors, making a total estimated shortfall of $1.89m.
The report says the director [Huo] had advised that the insolvency of the company came about “due to [a] downturn in economic conditions” and one supplier had “with little notice, changed the payments terms”.
The report on JNJ Construction, which provided construction project management services in the Auckland region, focusing on insurance projects, shows a shortfall to creditors of $745,000, while the shortfall to creditors of JLF Unlimited is $50,000.
Across the three companies, the total estimated shortfall is $2.685m.
On all three reports, a note by Hunt said: “It is … not possible to provide a definitive statement as to whether sufficient assets will be realised for the purposes of making payment to any class of creditor … but it is looking unlikely.”
Hunt said in his notes he would be investigating the date the companies became insolvent, pre-liquidation transactions and operations and whether the directors breached the Companies Act.
Luke Adams, who was the main building contractor for JNJ Homes and claims he is owed about $28,000, said he was furious with the way the saga had played out.
“From what I’m hearing, there’s nothing they can really sell off [to pay creditors].
“I’ve been told all of the work utes were leased, so they can’t even sell those to make money, so I’ve got zero hope I’ll see anything.”
Adams said he was sick of seeing tradies in the building industry getting a raw deal, and he hoped there would be a full investigation of JNJ Homes’ business activities.
“We’re just good, hard working Kiwis, and we’re getting f….. over.”
Hunt could not be reached for comment on Monday afternoon, nor could Huo.