Update on Mainzeal Property and Construction Limited

14 March 2013

News Release

Update on Mainzeal Property and Construction Limited
and associated entities (In Receivership and in Liquidation)


PwC Partners Colin McCloy and David Bridgman, as Receivers to Mainzeal Property and Construction Limited and associated entities, today have provided an update on this receivership.

“Since our appointment on Wednesday 6 February 2013, we have made good progress with this large and complex receivership, consistent with our statutory obligations,” says Mr McCloy.

The Receivers have continued their dialogue with Mainzeal’s clients as they have worked through an assessment of each of Mainzeal’s more than 40 various projects, all of which are at varying stages.

“The majority of clients have elected to continue projects using other contractors. We have therefore handed most sites back to Mainzeal clients, in a controlled manner, and we are reaching settlements in respect of those contracts. In the meantime, we are completing a relatively small number of selected projects through Mainzeal.

“With the progress to date, it is hoped that Mainzeal subcontractors and staff will have a prospect of being re-hired on various jobs. We understand how trying the situation has been for all parties involved,” adds Mr McCloy.

As previously announced, Mainzeal’s 50% interest in the MWH – Mainzeal Joint Venture has been sold to its partner, with that business now renamed MWH Recovery. This has enabled more than 80 Mainzeal staff seconded to that joint venture to transfer their employment to MWH Recovery.

“We are marketing a package of partially completed houses and sections in various subdivisions around Christchurch, and we are presently in discussion with a number of interested parties,” says Mr McCloy.

“We are working with a core residual team of around 40 Mainzeal personnel in Auckland, Hamilton, Palmerston North, Wellington and Christchurch, as we complete the wind down of the Mainzeal business, manage the orderly transition of projects, negotiate settlements with Mainzeal’s clients and recover assets. We have valued their assistance throughout the process,” says Mr McCloy.

The Receivers are now focused on realising Mainzeal’s property assets, realising items of plant and equipment, reconciling obligations to subcontractors, suppliers and staff, and addressing a range of other matters. The Receivers are also working with the Liquidators appointed to Mainzeal, assisting them with their reporting requirements and other statutory obligations.

“This Receivership represents an extremely disappointing end for what has historically been a well recognised brand in the New Zealand construction sector, and we appreciate the impact of this Receivership on all stakeholders,” adds Mr McCloy.

The Receivers will provide any further updates if and when appropriate.

Notes:
A dedicated page on the PwC website can be found at www.pwc.co.nz/mainzeal.

ENDS

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