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Auckland-based construction firm Construct Civil has been put into liquidation.
The company’s sole director, Barry Brady, said the firm had about 75 staff.
An application was placed to put Construct Civil into liquidation on March 17, according to the Government Gazette.
The application was brought by Promains, and on May 5 Christopher Carey McCullagh and Stephen Mark Lawrence were appointed liquidators.
Lawrence said the first liquidator’s report into the company was due June 12, and he had no further comment until then.
It is unknown how much might be owed to creditors and tradespeople.
There are warnings the construction sector is entering a bust cycle, with one law firm director recently reporting liquidations in the sector had grown from 25% of his firm’s business to 70%.
A separate analysis found 355 businesses fail in three months.
Headwinds to buffet the industry in recent times included higher labour and material costs, and delays in receiving some products.
Services advertised on the company’s website included various forms of welding, utility service installations, pipe supply, project management consultancy and pressure testing.
A report into Construct Civil’s parent company had been completed.
Actions to-date taken by the holdings company included freezing the company’s bank account, receipt of records from the company’s accountant and obtaining access to the company’s Xero account.
Liquidators were also obtaining information in relation to the assets, owned by the company and Construct Civil, and their location.
Which company owned the assets was also being established.
The holding company had loans of $973,320 to Construct Civil.
“At this stage it is unknown whether this debt will be recoverable,” the report read.
A total of $1,227,395 was also owed to ASB Bank, secured by way of first ranking general security agreement and specific security deeds.
Supplied/Supplied
Construct Civil Ltd’s website is still active.
There was $3,029,151 noted as owed to other security holders, although the validity of the securities and their ranking was yet to be confirmed.and $2895 was owed to unsecured creditors.
The holdings company had no staff, Lawrence said.
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