It will be days until a clearer picture emerges of the
financial situation construction company Mainzeal is in - but
a receiver already admits it's "unlikely" the company will be
able to trade its way out of trouble.
PwC receiver Colin McCloy indicated to the New Zealand
Herald yesterday that the business appeared beyond
"It can trade out but it's unlikely. It can be sold.
Individual contracts can be sold - there's a whole host of
options," he said.
The company's biggest job was as head contractor at Manukau
Institute of Technology's new $250 million campus above the
new Manukau railway station but Mr McCloy said Mainzeal had
about 40 jobs on around New Zealand, including Victoria
University's $67 million The Hub and a Manukau building for
the Ministry of Justice.
All 40 sites were now locked down until a full audit of the
work on the projects was completed. Mr McCloy said work had
been called to a halt, "until we can get a handle on each
He predicted an initial report would be ready by the end of
the month. "We're just working through the financial
statements and that will take some time."
The first public statements would likely be issued next week
when he hoped receivers would have "a better understanding of
He met with staff yesterday
morning. "That was to confirm we had been appointed and seek
their co-operation while we work through the process - and
staff have been very co-operative."
He confirmed worried creditors had already been in touch with
PwC, emailing and calling directly.
"They're obviously concerned about the position of the
companies. Our task is to get a clear understanding of the
company and formulate a strategy of receivership."
Meanwhile, Christchurch earthquake victims awaiting repairs
were yesterday reassured their work would be completed.
Vero and AA Insurance use MWH Mainzeal for residential
repairs and rebuilds on quake-hit properties and they told
customers that their domestic building projects' progress
would continue as usual.
Prime Minister John Key said he didn't believe the
45-year-old company's collapse would affect the rebuild in
Christchurch where it has about 90 staff.
- Anne Gibson of the New Zealand Herald