Would-be homeowners impacted by the collapse of tiny home company Podular no longer have a priority claim over their partially built units, following a decision with implications for insolvency law – and lay-bys.

Directed by businessman Charles Innes, Auckland-based Podular, which advertised mass-produced modular homes and sheds, collapsed in late 2022 owing creditors almost $10m.

The company was still taking deposits from customers in the weeks leading into liquidation. Innes has reportedly left New Zealand and moved to perth, Western Australia.

According to the most recent report from liquidator Simon Dalton of Gerry Rea Partners, significant shortfall of $9.7m is predicted.

Investigations into the company are continuing, with Dalton’s report saying a “significant matter” had been identified relating to senior management of the company.

Shortly after being appointed to the company and following pressure from the would-be homeowners, the liquidators sought direction from the High Court to try to clear up who had rights to the 18 partially built modular homes in the company’s possession.

The buyers had been paying in instalments as the homes were constructed, with some having already paid…