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Work might start on Mainzeal sites today – receiver

Mainzeal receiver Colin McCloy of PwC says work on some sites might begin again today. But he declined to name the possible sites or locations.

"Some might start today some might start early next week – it depends on each site; each site's different," he told NBR ONLINE.

"We've got our people reviewing each site, determining the appropriate strategy for the site and then we'll take it from there.

"It's a large, complex assignment and gathering information from all the sites is quite cumbersome."

Mainzeal Property & Construction – which went into receivership on Waitangi Day – still has a number of projects under construction, including the $250 million Manukau Institute of Technology campus, the $14 million redevelopment of Shed 10 on Auckland's Princes Wharf and the $67 million Hub project at Victoria University.

Receivers are allowing sub-contracting firms to retrieve tools today.

Mr McCloy says the best outcome is to sell all or part of the business as a going concern and he has had approaches from "serious, credible buyers", all from within New Zealand.

As previously reported, New Zealand's biggest construction company, Fletcher Building, is keeping an open mind on snapping up the remnants of Mainzeal. 

Staff layoffs cannot be ruled out. The receivers are yet to find any irregularities, he says.

PwC says it expects to issue a formal report by the end of the month, with an informal update by media statement early next week.

The independent directors of Mainzeal Group, headed by former prime minister Dame Jenny Shipley, say lack of credit and the withdrawing of support from BNZ forced them to resign.

Closer scrutiny of the construction industry is a likely result of the company's collapse.

dwilliams@nbr.co.nz

More by David Williams

Comments and questions
1

Ther is something sadly wrong with our Receivership legislation, when the 'Subbies' and tradesmen cannot get onto the site to retrieve their tools of trade and hardware that has not been paid for by the developer/ main contractor; yet the failed Directors and CEO's/managers can still live in their pretension mansions in Epsom, Parnell or where ever, swan about in their expensive cars and live it up at expensive Golf Clubs and social occasions.

No wonder Socialism is so attractive to the masses.