Receivers to give update on fallout

TAMLYN STEWART
Last updated 07:59 19/02/2013

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Project owners and subcontractors of Mainzeal will receive more information from receivers today on the fallout from the collapse of the construction company.

Receivers PricewaterhouseCoopers partners Colin McCloy and David Bridgman had 14 days within which to inform project owners whether their projects would go ahead or not, and that 14-day period ends tomorrow, a spokeswoman said.

The receivers would today provide an update on the progress of the receivership and address issues relating to staff, contractors, sites and the progress of discussions with potential buyers.

Mainzeal Property and Construction, New Zealand's third-largest construction company, was placed in receivership on February 6 at the request of its Auckland-based owner, Chinese businessman Richard Yan.

The firm was managing some 16 projects in Christchurch, including the $15.2 million boarding complex for St Andrew's College and the $40m expansion of the Hub shopping mall in Hornby.

St Andrew's general manager David Evans said the school had had some discussions with the receivers and was now waiting to hear whether they intended to complete work at the school.

The receivers had said they would inform the school early this week.

There was a "reasonable amount" of work left to finish a common room and administration block, as well as garages and siteworks relating to the new boarding house. "It would be preferable to finish it with some of the Mainzeal team and subcontractors," Evans said.

It would probably take about six weeks to complete all the work.

Neville Fagerlund, chairman of the company that owns the Hub shopping mall in Hornby, said he had not heard from the receivers since Mainzeal had been placed in receivership, despite phonecalls and emails.

Work on the Hub's expansion, for which Mainzeal had the main construction contract, began last month.

Fagerlund said he was fairly confident that if the receivers chose not to go ahead with the project they would find another company to step into the breach.

"We've had a lot of interest from others," he said.

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- © Fairfax NZ News

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