Langdon Building in administration owing more than $12m to creditors, 149 homes, 43 staff impacted

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A building company which went into administration last week appears to owe more than $12 million to creditors.

News.com.au previously reported that Victorian construction company Langdon Building had appointed external administrators and had halted all construction work for six weeks but emphasised the business had not collapsed.

But now more than 100 homeowners hoping to see their dreams come true are growing increasingly skittish as it appears less and less likely their builder can trade its way out of disaster.

At an administration meeting held on Thursday, creditors learned the company’s staggering debt.

As news.com.au understands it, according to people who attended the meeting, $5.1 million is owed to unsecured creditors.

Of that, it’s understood that more than $500,000 is owed to workers while a further $166,000 is owed to the tax department.

NAB is also owed $7 million but it is understood to be a secured creditor, meaning this will likely be paid back in full.

There was $500,000 in the company’s bank account when administrators took over.

In terms of assets, Langdon Building had two properties in its name and 35 vehicles, but many of those are likely under finance.

News.com.au contacted the administrators, Sam Kaso and Shaun Matthews from insolvency firm Cor Cordies, to confirm this.

Initially, administrators said that 115 homes had been impacted by Langdon Building’s temporary pause to construction, but that number has since risen.

According to an advertisement put out over the weekend trying to sell the company, that has since risen to 149 active building sites.

On the weekend, customers spotted a sales campaign kicking off, with an advertisement appearing in The Australian Financial Review trying to sell off the entire business.

Although the company’s director, the eponymous director, Shane Langdon, insisted the company would be “back on track” in no time, these advertisements did not fill homeowners with confidence.

“For a company claiming they will continue it is a little concerning,” one anonymous homeowner told news.com.au.

“The fact this company were taking peoples deposits and confirming payments just hours before announcing administration is an absolute joke.”

Simon Bevan, 47, is anxious about what Langdon Building’s descent into administration means for his nearly-completed home.

“It’s shattering,” he previously told news.com.au.

“Now we’re in limbo and we don’t know for how long.”

The dad estimates that his $407,000 build is 98 per cent complete, but frustratingly, he can’t move in and now all work is being paused for the next few weeks at least.

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Staff have also been impacted. The administrators said 43 people were working for Langdon Building at the time it went bust.

Of that, 22 have been “temporarily” stood down while a further 21 staff are still working.

News.com.au previously reported that it appears staff have been given the choice of being made redundant or standing down without pay for the next six weeks in the hopes that the company can turn its fortune around.

James*, a former employee, who is still in touch with his ex-colleagues, said that Langdon Building staff had “been told they can either be made redundant or hold out for the next six weeks” with no pay.

News.com.au also understands that Langdon Homes was one of the 10 builders put forward to complete the homes of victims caught up in the collapse of major builder Porter Davis.

That means for some people, this is the second insolvency to impact their home in the space of less than a year.

The company’s financial woes have been blamed on the cost of living crisis, supply chain disruptions and price increases following on from the Covid-19 pandemic.

Langdon Building Pty Ltd is headquartered in Ballarat, west of Melbourne, and has been a registered business since 2005.

On its still active website, it says it “constructs single and double-storey homes including custom designs in Melbourne Metro, Geelong, Ballarat & Bendigo”.

Customers have been told to contact administrators on langdon@corcordis.com.au or support@langdonbuilding.com.au with their concerns.

alex.turner-cohen@news.com.au

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