the time of the liquidation, construction was halted on over 200 houses being built by the company. All homes were covered by Home Owners Warranty insurance. Day released a statement on the same day, stating that he had stepped away from the company when elected in 2013, but had returned in 2015 because of what he called "poor management decisions" in his absence. Seeking to sell the business, or find an equity partner to recapitalise, a contract was signed with a Philippines-based capital resource company to purchase a 75 per cent stake in the group, however the money was not transferred and Day claimed the transfer documents were fraudulent. He also announced his intention to resign from the Senate. In an interview with the ABC, Day said that under the circumstances, it would be "untenable to stay in parliament". However, Day did not immediately resign on the day of the announcement. This gave Family First time to identify a replacement senator, and meant that Day could vote on contentious legislation such as the Australian Building and Construction Commission bill that had been one of the triggers for the double dissolution in 2016. Day later stated that he would not leave the Senate before the end of 2016, as there would not be time to install a replacement senator. However, on 1 November 2016, Day announced he had tendered his immediate resignation to the President of the Australian Senate. In a statement, Day said "while a number of offers for various parts of the Home Australia business have been received, the major investor who has been examining the group's portfolio of assets over the past fortnight, has decided not to proceed. Accordingly, I have today tendered my resignation to the president of the Senate effective immediately. It has been an honour and a privilege to serve as a senator for South Australia and I am sorry it has ended this way." Constitutional validity of election Shortly after Day's resignation, the government announced that it would move in the Senate to refer the validity of Day's election in July 2016 to the High Court. The government believed Day had potentially violated section 44(v) of the Constitution, which provides that a person who "has any direct or indirect pecuniary interest in any agreement with the Public Service of the Commonwealth" is "incapable of being chosen or of serving" in either house of Parliament.