Bob Foster’s construction creation with business partner Ron Anderson was put into voluntary administration earlier this year, owing $21 million.
Arrow International had been founded by Anderson and fellow ex Fletcher Construction partner Foster in 1984. It forged a new path in managing projects by bringing design and construction inhouse.
But Arrow hit hard times in recent years as has the wider construction industry, with several large companies collapsing under a combination of escalating prices, tight contracts and margins.
A series of financial hits had plagued Arrow over recent years, including a $14m leaky building claim over the Luxford Villas in Wellington.
The administrators of Arrow International revealed debts of about $21m, and advertised the sale of a development property to raise cash.
The catalyst was an arbitration award to March Construction of $4.2m.
"This isn't what we expected, but we had no choice and we're working with the administrators to minimise fallout," Foster told Stuff earlier this year.
Last year, the company was restructured when managers with 20 years’ experience left Arrow and its regional offices were closed or downsized. Then, most recently, a court handed down a $4.2m judgment in favour of March Construction over complicated foundations built for an accommodation tower in Auckland.
Following a creditors’ meeting in June, the company went into liquidation. Liquidators have estimated the company’s assets at $42m, but it’s not yet known how much is available to pay off creditors, as many of its assets were in subsidiaries and almost $16m was reported to be in related party debts.
In addition to Arrow, Foster and Anderson have joint interests in Wanaka's Aspiring Lifestyle Retirement Village and the Mt Eden Gardens Village in Auckland. Foster is also an investor in Fendalton Capital, which offers “high-quality, discreet and fiercely independent wealth management” to Canterbury families.
2018: $120 million