Former Novabuild directors face R76.7 million lawsuit in high court.
The joint liquidators of collapsed property development group Novabuild have launched a sweeping legal action in the Western Cape High Court, seeking to hold former directors David Peter Bunce and Jason Anthony Bailey personally liable for more than R76.6 million in debts allegedly incurred through years of reckless and fraudulent trading.
According to particulars of claim filed in the Western Cape Division of the High Cour, the liquidators allege that Bunce and Bailey knowingly conducted Novabuild's affairs in a manner that prejudiced creditors and benefitted associated entities and family trusts.
Novabuild, founded in 1994, operated as a property development, financing and holding company and managed a number of residential and commercial development entities. The company ceased operations around 2022, was placed under provisional liquidation in August 2024 and entered final liquidation in October 2024.
The plaintiffs, acting as liquidators of Novabuild, allege that the company had been insolvent since at least 2016 but continued trading despite its deteriorating financial position.
