Sharechat Logo

Mainzeal workers slashed to 14 full-time from 500, receivers report shows

Tuesday 9th April 2013

Text too small?

Mainzeal Group's receivers have slashed the number of full-time workers to just 14 from 500 as they focus on quantifying liabilities at the failed construction firm, according to their first report.

The group owes $11.3 million to its only first ranking secured creditor, Bank of New Zealand, the report from Colin McCloy and David Bridgman of PwC. In addition there are 114 specific security financing statements (PMSIs) for the supply of goods and services, including seven from BNZ, which are still being assessed.

Unsecured trade creditors are the biggest by value at $70 million, made up of $51.7 million in accounts payable and $18.3 million in retentions held. That doesn't include payments and invoices for January and February.

Of preferential creditors, employees are owed $5.2 million and the Inland Revenue Department is likely owed $600,000, according to company records. The receivers also identify contingent liabilities including $33.5 million in contractor bonds. How much of the bonds may be called isn't known yet, the receivers say.

The receivers have kept on nine construction management staff to assist in completing projects and recover receivables, three finance and admin workers and two asset management workers. Other former employees have been hired on a casual basis.

Mainzeal's key assets are listed at book value of $111.4 million, of which $71 million are related party receivables, $21.2 million are contract receivables, fixed assets $12.3 million and residential properties $5.9 million. Its 50 percent interest in a Christchurch project management services firm isn't quantified.

Liquidators have been appointed to the commercial construction sector player Mainzeal Group, less than a month after one of its primary trading arms, Mainzeal Property and Construction, was placed in receivership.

The entities in receivership are: Mainzeal Group, Mainzeal Property and Construction (in receivership), Mainzeal Living (in receivership), 200 Vic (in receivership), Building Futures Group Holdings, Building Futures Group, Mainzeal Residential, Mainzeal Construction, Mainzeal, Mainzeal Construction SI, MPC NZ, and RGRE.

Former Prime Minister Dame Jenny Shipley and former Brierley Investments chief executive Paul Collins resigned as directors of Mainzeal Property and Construction in December, at the request of Mainzeal and Richina group principal Richard Yan, an Auckland-based businessman, but remained directors of Mainzeal Group until just before the Feb. 6 MPC receivership.

BusinessDesk.co.nz

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar sags after avalanche of data and central bank action
Fonterra board starts planning chair succession
Fulton Hogan keeps Australian civil construction unit
Time for congestion pricing has come - NZIER
Colliers defends KiwiBuild as 'far from a colossal failure'
Pushpay shares rise as cost-cutting upgrades earnings guidance
20th September 2019 Morning Report
NZ dollar weaker against British pound on EC president's Brexit optimism
Todd plans Kapuni drilling campaign
MARKET CLOSE: NZ shares gain; appetite for KFC helps Restaurant Brands hit record

IRG See IRG research reports