A Newcastle contractor has broken down while describing the stress of dealing with failed building company Sehez while his wife is coping with a terminal illness.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Roofing firm owner Nat Meyers says Sehez cost him $74,000 and all 16 of his full-time staff before going into liquidation this week.
Mr Meyers' wife, Peta, 32, was diagnosed with Huntington's disease seven years ago and is waiting for the illness to start progressing.
Mr Meyers founded his company, NPV Roofing, in 2015 in the hope it would be running smoothly by the time Peta needed caring for. But those hopes are in tatters after Sehez went broke owing unsecured creditors like NPV more than $2 million.
"I was just trying to get the business going. I was trying to get ahead and hopefully have to work two or three days a week so I could be at home looking after Peta when she starts showing symptoms, just so she can have a bit of dignity, not go into one of them ... ," he said before breaking down.
"It's just heartbreaking. That's all I was trying to do. It's been put back four years, just because of someone else's greed."
Sehez director Matt Galvin said last week that he and fellow director Callan Smith had spent "every last cent" of their money trying to keep the company afloat so it could pay creditors.
The Newcastle Herald has been told Sehez owes money to more than 100 subcontractors, finance companies, investors and clients.
Mr Galvin said on Friday that he felt for the people who had been affected by the company's collapse.
"The fact that Nat's wife is sick certainly makes it harder," he said.
"Callan and I failed, and it has hurt good people."
READ MORE: CREDITORS FURIOUS AS SEHEZ COLLAPSES
Mr Meyers told a story familiar to other affected subcontractors of repeatedly being "lured" into working for Sehez in the hope of being paid for previous work.
"They'd pay, but they'd leave you 20 or 30 grand short so they could do it again the next time. You could never get your money out of them," he said.
He said NPV was owed $32,000 when he agreed to complete a $40,000 job for Sehez at Branxton two months ago, a decision he now regards as his "undoing".
"The final one, they still owed us $32,000, and they tried to get us to work for them and I said, 'No, I'm not working for you.'
"A good house came up in construction terms. It would have got locked up pretty quick, and that was my undoing.
"That job was worth 40 grand, so that took me up to $74,000 they owe me at this point. That was, again, they said do this one and we'll pay your full account.
"We did that roof then they went into administration. At that point they were in hiding or something. I've got in my phone register, while I was driving in between jobs just ringing and letting it go to voicemail, ring again. There was one with 21 calls and another one with about 30."
He said dealing with Sehez had "pushed me over the edge", forcing him to cut his workforce from 16 to 10 last year before letting the rest go in recent weeks.
"I've got two employees who are just about to pop with babies. They've got nothing now," he said.
"I've had to diminish down to me and Peta. I had 16 last year, and I had 10 just recently. We had to shrink initially because of them. We had to cut costs down.
"It was just too risky and my mental health was suffering badly. I've just downsized because I just can't cope with it."
Mr Meyers said he had borrowed almost $74,000 to stay in business.
"I would have been trading insolvent for a while to try and trade out, so if I missed any payments I'd just be like them guys. So I decided I'm not doing that to people.
"I've paid all my employees. I've got ATO debts due to it, because I've put them on the backburner, and I've got a 50 grand overdraft that's maxed out. It's all to do with Sehez. I'm just going to take a step back so I can get my head better."
Mr Galvin said on Friday that he was "confident" NPV's account balance had been "zero" when the Branxton job began, though he said Mr Meyers had rejected some Sehez jobs because of "our shitty payments".
He said NPV had agreed to be paid for the Branxton job when it reached lock-up stage, which was scheduled for mid-February before a receiver froze the Sehez Group bank account.
Sehez had talked to the Branxton client about paying the subcontractors directly.
"I'm not trying to downplay the pain that NPV have been hit with due to us failing to complete the project and get them paid," Mr Galvin said.
"They were one of our better subbies, had been through the low period with us and did a pretty good job."
The Victorian Supreme Court issued wind-up orders for Sehez on Wednesday and appointed liquidator Richard Rohrt.
Any proceeds of a liquidation go first to the liquidator to cover expenses, then to secured creditors, employees and, finally, unsecured creditors.
While you're with us, did you know the Newcastle Herald offers breaking news alerts, daily email newsletters and more? Keep up to date with all the local news - sign up here
IN THE NEWS
- Newcastle councillors up in arms over photo shoot
- Convicted child sex offender and Marist Brother William Wade pleads guilty to concealing child sex crimes
- NSW Labor slams Liberal National government's delay in building a Singleton bypass ahead of Shadow cabinet meeting
- Residents view escape from Williamtown contamination zone after federal government settles class-action claim
- Sonia Hornery lambasts state government in the wake of freak storm in Newcastle
- Bank set to foreclose on Williamtown farm after family flees red zone due to health concerns