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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 redemption.
"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 site".
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 the situation".
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