Fletcher reveals Mainzeal exposure

The ceo of New Zealand's biggest listed company pledges to save as many Mainzeal contracts as he can.

Fletcher Building and its subsidiaries, including Placemakers, are owed $7.5 million from the collapse of Mainzeal Property & Construction.

Fletcher ceo Mark Adamson says that gives it a huge incentive to ensure the projects and subcontractors do not fall over because of Mainzeal's collapse.

In a phone conference following today's half-year results, he says taking over half-finished projects can be fraught with problems but its staff are assessing every Mainzeal job with receivers PwC.

"It is our intention to try and save as many of them as possible."

"Between ourselves, some of the other major contractors in New Zealand and with the management of the receiver that we will manage to avoid the worst excesses of what could be very ugly if we're not careful."

Not only does it want to protect its supply base for future contracts, it is owed $7.538 million on Mainzeal contracts, Mr Adamson says.

"These people owe us money and I don't want to see them go bust. It is a bit of a minefield.

"We've got our experts working very closely with the property developers and the receivers but we are looking to put our best foot forward and show some goodwill in terms of returning some employment from Mainzeal and finishing off some of the work that they've embarked upon."

MWH, Mainzeal's joint venture partner in its earthquake repair management business, announced yesterday it had bought out the collapsed company's half, rebranded to MWH Recovery and employed 86 people. 

In an update released this afternoon, receivers Colin McCloy and David Bridgman say limited work has resumed on a Kapiti Coast District Council building site and it is hoped work at other sites will resume soon or, more likely, be transferred to other contractors or the client. 

Mainzeal, New Zealand's third-largest construction company, went into receivership on Waitangi Day after troubles with "shareholder support".

PwC has already made about 200 staff redundant.


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