Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Receivers expecting progress on Mainzeal projects

Receivers see handover of Mainzeal projects in the near future

Feb 20 (BusinessDesk) - Receivers for the collapsed Mainzeal Property and Construction say they hope to see work resume or responsibility returned to clients "in the near future" on the numerous projects that stopped in their tracks three weeks ago, when the receivership was announced.

The second largest construction firm in the country, Mainzeal announced its receivership on Waitangi Day, Feb 6. The collapse came out of the blue for its 440 permanent staff and thousands of sub-contractors on sites across New Zealand, especially as the construction industry gears up for a heady period of activity with the Christchurch rebuild.

Partners from the accounting firm PwC, which is managing the receivership, said they "hope to be in a position to either resume work or, as is more likely in a number of instances, transfer responsibility for other projects back to the client or another contractor in the near future."

"Mainzeal is a large and complex receivership with many different stakeholders and we want to assure all parties that the receivership is being progressed as quickly as possible consistent with the receivers’ statutory obligations,” said receiver Colin McCloy in only the second official update since the receivership began.

“We have nearly completed our initial assessment of Mainzeal’s projects and have had ongoing contact with Mainzeal’s clients and staff since our appointment. We will continue walking them through each step of what a receivership means. We understand it is a trying time for everyone.”

However, there had been an orderly transition of a substantial number of Christchurch staff to MWH Recovery, which has bought Mainzeal out of the MWH Mainzeal joint venture, and limited work has resumed on the Kapiti Coast District Council's new aquatic centre.

Mainzeal was placed in receivership after its primary lender, the Bank of New Zealand, withdrew credit lines, which it is understood triggered the inability to make a scheduled payment of a $1.8 million instalment on a $20 million facility, when it fell due.

Statements at the time blamed the cost of repairing leaky buildings and supply chain difficulties involving a Chinese supplier for the company's failure.

Liquidators have subsequently been appointed for King Façade, a company owned by an entity in the Richina group of companies, one of which also owns Mainzeal and all of which are closely linked to Chinese-born Auckland businessman Richard Yan.

The first report from King Façade's liquidators, BDO, found total liabilities of almost $20 million and that the firm's only customer was Mainzeal, which had also been carrying its losses. King Façade has been bringing in building facades from its Chinese parent to allow Mainzeal to undertake remedial work on residential apartments in Auckland and is understood to be a key cause of the Mainzeal receivership.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news