Creditors of liquidated company Coral Coast Homes have been told the company has no assets or funds to reimburse customers and suppliers.
A creditors' meeting was held yesterday in Bundaberg, in south-east Queensland, and a committee of creditors was established.
The company went into liquidation earlier this month owing about $1 million to about 100 creditors from across the region.
The company's director, John Biles, did not attend the first creditors' meeting yesterday.
SV Partners' liquidator David Stimpson says investigations will continue into Mr Biles' finances.
"It is not uncommon to see a building company and other companies in other industries for that matter with a $1 million plus in debt," he said.
"Usually there are assets though - in this case the fact that there is really nothing recoverable is a little bit unusual.
"In my discussion with [Mr Biles], he indicated initially that he wanted to cooperate as much as possible - that he felt badly about where the company had ended up and felt badly about the losses people have incurred.
"In saying that he's told me quite clearly that he has no resources to do anything and he had no option but to put the company into liquidation."
The general manager of the Building Service Authority (BSA), Chris Boyle, who attended yesterday's meeting, says the complaints were investigated.
BSA spokesman Ian Jennings says the authority is now investigating whether financial information provided by the company in April 2008, which showed it was meeting its financial commitments, was misleading.
Meanwhile, customers of Steel Smart Homes, another company directed by Mr Biles, are not likely to see any compensation either.
The company has stopped trading and gone into administration but is yet to be liquidated.
The BSA says the company was not registered with the authority as a licensed builder.
Chris Dalby, who has purchased a $30,000 kit home, says he has lost a lot of savings.
"We've just got to purchase what wasn't supplied all over again, which means paying for it again twice," he said.
"That hurts, I've got to tell you."
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