Mainzeal 'large and complex' receivership

CATHERINE HARRIS
Last updated 16:13 20/02/2013

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The receivers of collapsed Mainzeal Property and Construction have nearly completed their initial assessment of the company's projects, warning it is a complicated case.

PWC partners Colin McCloy and David Bridgman said it was a "large and complex receivership with many different stakeholders" and wanted to assure people PwC was working as quickly as it legally could.

"We understand it is a trying time for everyone," they said.

Limited work has resumed on the Kapiti Coast District Council's new aquatic centre, and PwC said it hoped work on other Mainzeal projects would soon either be resumed or, "as is more likely in a number of instances", transferred back to the client or another contractor.

The vast majority of contractors and sub-contractors had been given access to sites to retrieve their tools, and some milestones had been achieved.

These included the buyout of a Mainzeal joint venture by its partner MWH Recovery which meant a substantial number of Christchurch staff had been able to remain in work.

Wellington's CentrePort is one of the companies hit by the receivership, noting the delay on refurbishment of its Shed 39 building during its half year result today.

CHRISTCHURCH DEVELOPMENTS

Mainzeal's collapse has left the owners of Christchurch's Hornby Mall to find a new main building contractor for the $47 million expansion after the receivers said they would not continue it.

But McCloy and Bridgeman will finish another Mainzeal contract in Christchurch that is not far from complete - St Andrew's College new boarding houses and associated buildings.

The chairman of the company owning Hornby Mall, Neville Fagerlund, said he had been told by receivers late yesterday that they would not continue with the two-year building contract.

The project had only just started, Fagerlund said, and was one of the biggest Mainzeal contracts in Christchurch.

The project involved building a 6000-square metre Farmers department store and other speciality shops. Mainzeal's part was worth almost half the $47m project.

Fagerlund said he already had several expressions of interest from other building companies wanting to pick up the contract and he expected the work to resume soon.

At the same time the company would contract directly with some subcontractors.

Hornby Mall is owned by Shopping Centre Investments which has about 150 mainly Canterbury shareholders.

St Andrew's College general manager David Evans said he had met the receivers this morning and they had indicated they would complete the contract. There was about eight weeks work left to finish a common room, administration block, three garages and site work.

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- BusinessDay.co.nz

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